ASHOK LEYLAND 2018-19 Annual Report Analysis

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ASHOK LEYLAND 2018-19 Annual Report Analysis
Mon, 16 Sep

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 12.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 15.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.8% in FY19 as against 14.3% in FY18.
  • Depreciation charges increased by 4.6% and finance costs increased by 22.4% YoY, respectively.
  • Other income declined by 35.7% YoY.
  • Net profit for the year grew by 21.0% YoY.
  • Net profit margins during the year grew from 6.1% 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 296,356 331,968 12.0%
Other income Rs m 1,991 1,281 -35.7%
Total Revenues Rs m 298,347 333,249 11.7%
Gross profit Rs m 42,484 49,100 15.6%
Depreciation Rs m 6,459 6,756 4.6%
Interest Rs m 12,274 15,022 22.4%
Profit before tax Rs m 25,743 28,603 11.1%
Tax Rs m 7,511 6,771 -9.9%
Profit after tax Rs m 18,138 21,946 21.0%
Gross profit margin % 14.3 14.8
Effective tax rate % 29.2 23.7
Net profit margin % 6.1 6.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 5% and stood at Rs 75 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 391 billion as against Rs 335 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 74,206 87,456 17.9
 
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 335,180 391,219 16.7
 
Current assets Rs m 144,216 164,875 14.3
Fixed Assets Rs m 71,328 74,752 4.8
Total Assets Rs m 335,180 391,219 16.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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: Company Reports, Regulatory Filings, 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 63.0, stands at 10.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 1.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.3 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 101.2 113.1
TTM Earnings per share Rs 6.2 7.5
Diluted earnings per share Rs 6.4 7.7
Price to Cash Flow x 7.5 6.3
TTM P/E ratio x 10.7 10.4
Price / Book Value ratio x 4.6 4.1
Market Cap Rs m 184,407 179,290
Dividends per share (Unadj.) Rs 2.4 3.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 25.1% during FY19, from 24.4% 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 14 30
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 % 24.4 25.1
Return on capital employed % 21.5 20.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 131.4 to Rs 63.0, registering a loss of Rs 68.4 or around 52.0%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 16,463.2 (down 0.5%). Over the last one year it has moved down from 24,246.9 to 16,463.2, a loss of 7,784 points (down 32.1%).

Overall, the S&P BSE SENSEX is down 2.4% over the year.

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

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Related Views on News

ASHOK LEYLAND Announces Quarterly Results (1QFY20); Net Profit Down 37.8% (Quarterly Result Update)

Aug 6, 2019 | Updated on Aug 6, 2019

For the quarter ended June 2019, ASHOK LEYLAND has posted a net profit of Rs 2 bn (down 37.8% YoY). Sales on the other hand came in at Rs 57 bn (down 9.1% YoY). Read on for a complete analysis of ASHOK LEYLAND's quarterly results.

ASHOK LEYLAND Announces Quarterly Results (4QFY19); Net Profit Down 2.2% (Quarterly Result Update)

May 27, 2019 | Updated on May 27, 2019

For the quarter ended March 2019, ASHOK LEYLAND has posted a net profit of Rs 7 bn (down 2.2% YoY). Sales on the other hand came in at Rs 88 bn (up 0.8% YoY). Read on for a complete analysis of ASHOK LEYLAND's quarterly results.

ASHOK LEYLAND 2017-18 Annual Report Analysis (Annual Result Update)

Aug 21, 2018 | Updated on Aug 21, 2018

Here's an analysis of the annual report of ASHOK LEYLAND for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of ASHOK LEYLAND. Also includes updates on the valuation of ASHOK LEYLAND.

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