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ASHOK LEYLAND 2018-19 Annual Report Analysis
Sun, 31 Mar

ASHOK LEYLAND 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.

ASHOK LEYLAND Income Statement Analysis

  • Operating income during the year rose 13.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 15.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.7% in FY19 as against 14.4% in FY18.
  • Depreciation charges increased by 4.6% and finance costs increased by 22.4% YoY, respectively.
  • Other income declined by 19.1% YoY.
  • Net profit for the year grew by 20.8% YoY.
  • Net profit margins during the year grew from 6.2% in FY18 to 6.6% in FY19.

ASHOK LEYLAND Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 293,541 331,968 13.1%
Other income Rs m 1,991 1,611 -19.1%
Total Revenues Rs m 295,532 333,579 12.9%
Gross profit Rs m 42,325 48,771 15.2%
Depreciation Rs m 6,459 6,756 4.6%
Interest Rs m 12,274 15,022 22.4%
Profit before tax Rs m 25,584 28,604 11.8%
Tax Rs m 7,511 6,771 -9.9%
Profit after tax Rs m 18,073 21,833 20.8%
Gross profit margin % 14.4 14.7
Effective tax rate % 29.4 23.7
Net profit margin % 6.2 6.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ASHOK LEYLAND Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 153 billion as compared to Rs 142 billion in FY18, thereby witnessing an increase of 7.9%.
  • Long-term debt stood at Rs 130 billion as compared to Rs 102 billion during FY18, a growth of 27.2%.
  • Current assets rose 14% and stood at Rs 165 billion, while fixed assets rose 19% and stood at Rs 226 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 391 billion as against Rs 334 billion during FY18, thereby witnessing a growth of 17%.

ASHOK LEYLAND Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 73,505 87,365 18.9
 
Current Liabilities Rs m 141,915 153,159 7.9
Long-term Debt Rs m 102,281 130,097 27.2
Total Liabilities Rs m 333,762 391,116 17.2
 
Current assets Rs m 144,216 164,875 14.3
Fixed Assets Rs m 189,547 226,241 19.4
Total Assets Rs m 333,762 391,116 17.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ASHOK LEYLAND Cash Flow Statement Analysis

  • ASHOK LEYLAND's cash flow from operating activities (CFO) during FY19 stood at Rs -37 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 19 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 24 billion, an improvement of 26% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 5 billion from the Rs 2 billion net cash flows seen during FY18.

ASHOK LEYLAND 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 14,624 -37,455 -
Cash Flow from Investing Activities Rs m -31,662 18,919 -
Cash Flow from Financing Activities Rs m 19,054 23,978 25.8%
Net Cash Flow Rs m 2,049 5,494 168.1%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ASHOK LEYLAND

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.5, an improvement from the EPS of Rs 6.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 91.3, stands at 14.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.5 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 100.3 113.4
TTM Earnings per share Rs 6.2 7.5
Diluted earnings per share Rs 6.2 7.4
Price to Cash Flow x 17.4 12.5
TTM P/E ratio x 27.0 14.4
Price / Book Value ratio x 4.6 4.1
Market Cap Rs m 340,349 358,570
Dividends per share (Unadj.) Rs 2.4 3.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ASHOK LEYLAND

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY19, from 1.0x 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 2.9x 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 improved and stood at 25.0% during FY19, from 24.6% 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 20.1% during FY19, from 21.5% 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 9.4% during FY19, from 9.1% 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 1.0 1.1
Debtors’ Days Days 1 3
Interest coverage x 3.1 2.9
Debt to equity ratio x 1.4 1.5
Return on assets % 9.1 9.4
Return on equity % 24.6 25.0
Return on capital employed % 21.5 20.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how ASHOK LEYLAND has performed over the last 5 years, please visit here.

ASHOK LEYLAND Share Price Performance

Over the last one year, ASHOK LEYLAND share price has moved down from Rs 145.3 to Rs 91.3, registering a loss of Rs 54.0 or around 37.2%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 18,824.9 (up 1.2%). Over the last one year it has moved down from 24,057.3 to 18,824.9, a loss of 5,232 points (down 21.7%).

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

(To know more, check out historical annual results for ASHOK LEYLAND and quarterly results for ASHOK LEYLAND)

Annual Report FAQs

What is the current share price of ASHOK LEYLAND?

ASHOK LEYLAND currently trades at Rs 162.7 per share. You can check out the latest share price performance of ASHOK LEYLAND here...

What was the revenue of ASHOK LEYLAND in FY19? How does it compare to earlier years?

The revenues of ASHOK LEYLAND stood at Rs 333,579 m in FY19, which was up 12.9% compared to Rs 295,532 m reported in FY18.

ASHOK LEYLAND's revenue has grown from Rs 145,959 m in FY15 to Rs 333,579 m in FY19.

Over the past 5 years, the revenue of ASHOK LEYLAND has grown at a CAGR of 23.0%.

What was the net profit of ASHOK LEYLAND in FY19? How does it compare to earlier years?

The net profit of ASHOK LEYLAND stood at Rs 21,833 m in FY19, which was up 20.8% compared to Rs 18,073 m reported in FY18.

This compares to a net profit of Rs 16,428 m in FY17 and a net profit of Rs 7,907 m in FY16.

Over the past 5 years, ASHOK LEYLAND net profit has grown at a CAGR of NaN%.

What does the cash flow statement of ASHOK LEYLAND reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ASHOK LEYLAND reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs -37,455 m as compared to Rs 14,624 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs 18,919 m as compared to Rs -31,662 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs 23,978 m as compared to Rs 19,054 m in FY18.

Here's the cash flow statement of ASHOK LEYLAND for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations951-12,7472,70114,624-37,455
From Investments-1,2574,536-16,949-31,66218,919
From Financial Activity7,81216,6007,37719,05423,978
Net Cashflow7,5188,412-6,6812,0495,494

What does the Key Ratio analysis of ASHOK LEYLAND reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ASHOK LEYLAND reveals:

  • Operating profit margins witnessed a fall and down at 14.7% in FY19 as against 14.4% in FY18.
  • Net profit margins grew from 6.2% in FY18 to 6.6% in FY19.
  • Debt to Equity ratio for FY19 stood at 1.5 as compared to 1.4 in FY18.

Here's the ratio/financial analysis of ASHOK LEYLAND for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)8.512.715.414.414.7
Net Profit Margin (%)-1.53.97.66.26.6
Debt to Equity Ratio (x)1.41.41.41.41.5

Read: Latest Annual Report Analysis of ASHOK LEYLAND

 

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