ASAHI INDIA 2018-19 Annual Report Analysis

Sun, 31 Mar

ASAHI INDIA 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.

ASAHI INDIA Income Statement Analysis

• Operating income during the year rose 12.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.4% in FY19 as against 17.7% in FY18.
• Depreciation charges increased by 25.1% and finance costs increased by 9.3% YoY, respectively.
• Other income declined by 22.4% YoY.
• Net profit for the year grew by 5.3% YoY.
• Net profit margins during the year declined from 6.6% in FY18 to 6.2% in FY19.

ASAHI INDIA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	25,869	29,130	12.6%
Other income	Rs m	243	189	-22.4%
Total Revenues	Rs m	26,113	29,319	12.3%
Gross profit	Rs m	4,589	5,079	10.7%
Depreciation	Rs m	948	1,185	25.1%
Interest	Rs m	1,237	1,352	9.3%
Profit before tax	Rs m	2,647	2,730	3.1%
Tax	Rs m	930	921	-0.9%
Profit after tax	Rs m	1,717	1,809	5.3%
Gross profit margin	%	17.7	17.4
Effective tax rate	%	35.1	33.7
Net profit margin	%	6.6	6.2

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ASAHI INDIA Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 14 billion as compared to Rs 12 billion in FY18, thereby witnessing an increase of 13.9%.
• Long-term debt stood at Rs 11 billion as compared to Rs 9 billion during FY18, a growth of 20.7%.
• Current assets rose 4% and stood at Rs 11 billion, while fixed assets rose 19% and stood at Rs 25 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 36 billion as against Rs 32 billion during FY18, thereby witnessing a growth of 14%.

ASAHI INDIA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	10,756	12,157	13.0
Current Liabilities	Rs m	11,894	13,552	13.9
Long-term Debt	Rs m	9,109	10,993	20.7
Total Liabilities	Rs m	31,797	36,171	13.8
Current assets	Rs m	10,846	11,266	3.9
Fixed Assets	Rs m	20,951	24,905	18.9
Total Assets	Rs m	31,797	36,171	13.8

ASAHI INDIA Cash Flow Statement Analysis

• ASAHI INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -5 billion, an improvement of 14.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 908 million, an improvement of 7,543% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 28 million from the Rs 5 million net cash flows seen during FY18.

ASAHI INDIA 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	4,493	4,238	-5.7%
Cash Flow from Investing Activities	Rs m	-4,475	-5,118	-
Cash Flow from Financing Activities	Rs m	-12	908	-
Net Cash Flow	Rs m	5	28	424.5%

Current Valuations for ASAHI INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.4, an improvement from the EPS of Rs 7.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 261.6, stands at 34.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 25.3 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	106.4	119.8
TTM Earnings per share	Rs	7.1	7.4
Diluted earnings per share	Rs	7.1	7.4
Price to Cash Flow	x	30.3	25.3
TTM P/E ratio	x	44.8	34.4
Price / Book Value ratio	x	7.4	6.2
Market Cap	Rs m	79,284	75,808
Dividends per share (Unadj.)	Rs	1.5	1.0

Ratio Analysis for ASAHI INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY19, from 0.9x 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 deteriorated and stood at 3.0x during FY19, from 3.1x 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 declined and down at 14.9% during FY19, from 16.0% 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 declined and down at 17.6% during FY19, from 19.6% 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 declined and down at 8.7% during FY19, from 9.3% 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	0.9	0.8
Debtors’ Days	Days	455	338
Interest coverage	x	3.1	3.0
Debt to equity ratio	x	0.8	0.9
Return on assets	%	9.3	8.7
Return on equity	%	16.0	14.9
Return on capital employed	%	19.6	17.6

To see how ASAHI INDIA has performed over the last 5 years, please visit here.

ASAHI INDIA Share Price Performance

Over the last one year, ASAHI INDIA share price has moved down from Rs 332.5 to Rs 261.6, registering a loss of Rs 70.9 or around 21.3%.

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

(To know more, check out historical annual results for ASAHI INDIA and quarterly results for ASAHI INDIA)

Read: Latest Annual Report Analysis of ASAHI INDIA