ASAHI INDIA 2018-19 Annual Report Analysis

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ASAHI INDIA 2018-19 Annual Report Analysis
Mon, 9 Sep

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 10.6% 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 down at 17.8% in FY19 as against 17.8% 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 111.1% YoY.
  • Net profit margins during the year grew from 6.7% in FY18 to 12.8% in FY19.

ASAHI INDIA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 26,330 29,130 10.6%
Other income Rs m 243 189 -22.4%
Total Revenues Rs m 26,573 29,319 10.3%
Gross profit Rs m 4,677 5,179 10.7%
Depreciation Rs m 948 1,185 25.1%
Interest Rs m 1,237 1,352 9.3%
Profit before tax Rs m 2,735 2,830 3.5%
Tax Rs m 930 -921 -199.1%
Profit after tax Rs m 1,774 3,744 111.1%
Gross profit margin % 17.8 17.8
Effective tax rate % 34.0 -32.5
Net profit margin % 6.7 12.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 24 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 37 billion as against Rs 33 billion during FY18, thereby witnessing a growth of 12%.

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 13,553 13.9
Long-term Debt Rs m 9,109 10,993 20.7
Total Liabilities Rs m 32,814 36,895 12.4
 
Current assets Rs m 10,846 11,266 3.9
Fixed Assets Rs m 20,212 24,090 19.2
Total Assets Rs m 32,814 36,895 12.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ASAHI INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.4, an improvement from the EPS of Rs 7.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 179.9, stands at 24.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 2.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.9 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 108.3 119.8
TTM Earnings per share Rs 7.3 15.4
Diluted earnings per share Rs 7.3 15.4
Price to Cash Flow x 16.2 8.9
TTM P/E ratio x 24.9 24.9
Price / Book Value ratio x 7.4 6.2
Market Cap Rs m 43,732 43,732
Dividends per share (Unadj.) Rs 1.5 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 3.1x during FY19, from 3.2x 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 30.8% during FY19, from 16.5% 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 18.0% during FY19, from 19.8% 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 13.8% during FY19, from 9.2% 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 45 34
Interest coverage x 3.2 3.1
Debt to equity ratio x 0.8 0.9
Return on assets % 9.2 13.8
Return on equity % 16.5 30.8
Return on capital employed % 19.8 18.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 347.1 to Rs 179.9, registering a loss of Rs 167.2 or around 48.2%.

Overall, the S&P BSE SENSEX is down 2.7% over the year.

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

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