DELTA CORP 2018-19 Annual Report Analysis

Sun, 31 Mar

DELTA CORP has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

DELTA CORP Income Statement Analysis

• Operating income during the year rose 24.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 32.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 53.3% in FY19 as against 50.0% in FY18.
• Depreciation charges increased by 1.5% and finance costs increased by 23.6% YoY, respectively.
• Other income grew by 9.3% YoY.
• Net profit for the year grew by 26.3% YoY.
• Net profit margins during the year grew from 31.4% in FY18 to 31.9% in FY19.

DELTA CORP Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	4,959	6,158	24.2%
Other income	Rs m	286	313	9.3%
Total Revenues	Rs m	5,245	6,471	23.4%
Gross profit	Rs m	2,481	3,281	32.2%
Depreciation	Rs m	371	377	1.5%
Interest	Rs m	104	128	23.6%
Profit before tax	Rs m	2,292	3,088	34.8%
Tax	Rs m	737	1,124	52.5%
Profit after tax	Rs m	1,555	1,964	26.3%
Gross profit margin	%	50.0	53.3
Effective tax rate	%	32.2	36.4
Net profit margin	%	31.4	31.9

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DELTA CORP Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 3 billion as compared to Rs 3 billion in FY18, thereby witnessing an decrease of -12.1%.
• Current assets rose 20% and stood at Rs 9 billion, while fixed assets rose 5% and stood at Rs 13 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 23 billion as against Rs 20 billion during FY18, thereby witnessing a growth of 11%.

DELTA CORP Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	16,768	19,235	14.7
Current Liabilities	Rs m	3,475	3,053	-12.1
Long-term Debt	Rs m	13	0	-100.0
Total Liabilities	Rs m	20,403	22,582	10.7
Current assets	Rs m	7,776	9,316	19.8
Fixed Assets	Rs m	12,627	13,265	5.1
Total Assets	Rs m	20,403	22,582	10.7

DELTA CORP Cash Flow Statement Analysis

• DELTA CORP's cash flow from operating activities (CFO) during FY19 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -785 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -727 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -497 million from the Rs 935 million net cash flows seen during FY18.

DELTA CORP Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	2,285	1,014	-55.6%
Cash Flow from Investing Activities	Rs m	-4,605	-785	-
Cash Flow from Financing Activities	Rs m	3,011	-727	-
Net Cash Flow	Rs m	935	-497	-

Current Valuations for DELTA CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.3, an improvement from the EPS of Rs 5.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 254.7, stands at 34.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 11.2 times.
• The company's price to cash flow (P/CF) ratio stood at 28.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	18.5	22.7
TTM Earnings per share	Rs	5.8	7.3
Diluted earnings per share	Rs	5.8	7.3
Price to Cash Flow	x	34.8	28.9
TTM P/E ratio	x	43.4	34.5
Price / Book Value ratio	x	4.3	3.5
Market Cap	Rs m	72,303	67,660
Dividends per share (Unadj.)	Rs	1.0	1.3

Ratio Analysis for DELTA CORP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x during FY19, from 2.2x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 25.1x during FY19, from 23.1x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 10.2% during FY19, from 9.3% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 16.7% during FY19, from 14.3% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 9.3% during FY19, from 8.1% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	2.2	3.1
Debtors’ Days	Days	1	0
Interest coverage	x	23.1	25.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.1	9.3
Return on equity	%	9.3	10.2
Return on capital employed	%	14.3	16.7

To see how DELTA CORP has performed over the last 5 years, please visit here.

DELTA CORP Share Price Performance

Over the last one year, DELTA CORP share price has moved up from Rs 250.4 to Rs 254.7, registering a gain of Rs 4.4 or around 1.7%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for DELTA CORP and quarterly results for DELTA CORP)

Read: Latest Annual Report Analysis of DELTA CORP