ASHIANA HOUSING 2018-19 Annual Report Analysis

Sun, 31 Mar

ASHIANA HOUSING 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.

ASHIANA HOUSING Income Statement Analysis

• Operating income during the year rose 5.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 36.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.6% in FY19 as against 17.5% in FY18.
• Depreciation charges increased by 11.2% and finance costs increased by 22.0% YoY, respectively.
• Other income declined by 3.8% YoY.
• Net profit for the year declined by 64.0% YoY.
• Net profit margins during the year declined from 11.9% in FY18 to 4.1% in FY19.

ASHIANA HOUSING Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	3,213	3,375	5.0%
Other income	Rs m	136	131	-3.8%
Total Revenues	Rs m	3,349	3,506	4.7%
Gross profit	Rs m	563	359	-36.2%
Depreciation	Rs m	73	81	11.2%
Interest	Rs m	139	169	22.0%
Profit before tax	Rs m	487	240	-50.9%
Tax	Rs m	105	102	-3.2%
Profit after tax	Rs m	382	138	-64.0%
Gross profit margin	%	17.5	10.6
Effective tax rate	%	21.6	42.5
Net profit margin	%	11.9	4.1

Act Before 11:59pm: Last Day to SAVE 80% on Our Midcap Stocks Research

ASHIANA HOUSING Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 3 billion as compared to Rs 4 billion in FY18, thereby witnessing an decrease of -34.7%.
• Long-term debt stood at Rs 1 billion as compared to Rs 634 million during FY18, a growth of 125.2%.
• Current assets fell 5% and stood at Rs 11 billion, while fixed assets rose 5% and stood at Rs 2 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 12 billion as against Rs 13 billion during FY18, thereby witnessing a fall of 3%.

ASHIANA HOUSING Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	7,658	7,818	2.1
Current Liabilities	Rs m	4,073	2,661	-34.7
Long-term Debt	Rs m	634	1,427	125.2
Total Liabilities	Rs m	12,660	12,220	-3.5
Current assets	Rs m	11,223	10,706	-4.6
Fixed Assets	Rs m	1,438	1,514	5.3
Total Assets	Rs m	12,660	12,220	-3.5

ASHIANA HOUSING Cash Flow Statement Analysis

• ASHIANA HOUSING's cash flow from operating activities (CFO) during FY19 stood at Rs -103 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 307 million, an improvement of 178.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 19 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 223 million from the Rs -110 million net cash flows seen during FY18.

ASHIANA HOUSING 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	-543	-103	-
Cash Flow from Investing Activities	Rs m	110	307	178.3%
Cash Flow from Financing Activities	Rs m	322	19	-94.1%
Net Cash Flow	Rs m	-110	223	-

Current Valuations for ASHIANA HOUSING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an decline from the EPS of Rs 3.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 115.1, stands at 85.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 64.4 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	31.4	33.0
TTM Earnings per share	Rs	3.7	1.3
Diluted earnings per share	Rs	3.7	1.3
Price to Cash Flow	x	34.6	64.4
TTM P/E ratio	x	52.2	85.9
Price / Book Value ratio	x	2.7	1.8
Market Cap	Rs m	20,540	14,107
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for ASHIANA HOUSING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.0x during FY19, from 2.8x 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 2.4x during FY19, from 4.5x 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 1.8% during FY19, from 5.0% 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 4.4% during FY19, from 7.6% 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 2.5% during FY19, from 4.1% 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	2.8	4.0
Debtors’ Days	Days	289	246
Interest coverage	x	4.5	2.4
Debt to equity ratio	x	0.1	0.2
Return on assets	%	4.1	2.5
Return on equity	%	5.0	1.8
Return on capital employed	%	7.6	4.4

To see how ASHIANA HOUSING has performed over the last 5 years, please visit here.

ASHIANA HOUSING Share Price Performance

Over the last one year, ASHIANA HOUSING share price has moved down from Rs 153.9 to Rs 115.1, registering a loss of Rs 38.8 or around 25.2%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,077.1 (up 0.6%). Over the last one year it has moved down from 2,229.9 to 2,077.1, a loss of 153 points (down 6.9%).

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

(To know more, check out historical annual results for ASHIANA HOUSING and quarterly results for ASHIANA HOUSING)

Read: Latest Annual Report Analysis of ASHIANA HOUSING