ASTRA MICRO 2018-19 Annual Report Analysis

Sun, 31 Mar

ASTRA MICRO 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.

ASTRA MICRO Income Statement Analysis

• Operating income during the year fell 18.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 71.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.0% in FY19 as against 31.7% in FY18.
• Depreciation charges increased by 5.4% and finance costs decreased by 13.6% YoY, respectively.
• Other income grew by 190.0% YoY.
• Net profit for the year declined by 81.1% YoY.
• Net profit margins during the year declined from 17.0% in FY18 to 3.9% in FY19.

ASTRA MICRO Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	3,585	2,935	-18.1%
Other income	Rs m	85	245	190.0%
Total Revenues	Rs m	3,670	3,180	-13.3%
Gross profit	Rs m	1,136	324	-71.5%
Depreciation	Rs m	274	289	5.4%
Interest	Rs m	149	129	-13.6%
Profit before tax	Rs m	797	151	-81.0%
Tax	Rs m	187	36	-80.7%
Profit after tax	Rs m	611	115	-81.1%
Gross profit margin	%	31.7	11.0
Effective tax rate	%	23.4	23.8
Net profit margin	%	17.0	3.9

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ASTRA MICRO Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 1 billion as compared to Rs 2 billion in FY18, thereby witnessing an decrease of -37.4%.
• Long-term debt down at Rs 48 million as compared to Rs 143 million during FY18, a fall of 66.7%.
• Current assets fell 16% and stood at Rs 4 billion, while fixed assets rose 3% and stood at Rs 2 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 6 billion as against Rs 7 billion during FY18, thereby witnessing a fall of 10%.

ASTRA MICRO Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	5,010	4,996	-0.3
Current Liabilities	Rs m	1,706	1,068	-37.4
Long-term Debt	Rs m	143	48	-66.7
Total Liabilities	Rs m	6,913	6,196	-10.4
Current assets	Rs m	4,784	4,006	-16.3
Fixed Assets	Rs m	2,129	2,189	2.8
Total Assets	Rs m	6,913	6,196	-10.4

ASTRA MICRO Cash Flow Statement Analysis

• ASTRA MICRO's cash flow from operating activities (CFO) during FY19 stood at Rs 15 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 854 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -984 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -115 million from the Rs 197 million net cash flows seen during FY18.

ASTRA MICRO 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	1,788	15	-99.2%
Cash Flow from Investing Activities	Rs m	-943	854	-
Cash Flow from Financing Activities	Rs m	-648	-984	-
Net Cash Flow	Rs m	197	-115	-

Current Valuations for ASTRA MICRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an decline from the EPS of Rs 7.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 98.3, stands at 67.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 19.6 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	41.4	33.9
TTM Earnings per share	Rs	7.1	1.3
Diluted earnings per share	Rs	7.1	1.3
Price to Cash Flow	x	7.5	19.6
TTM P/E ratio	x	10.9	67.9
Price / Book Value ratio	x	1.9	1.6
Market Cap	Rs m	9,739	7,944
Dividends per share (Unadj.)	Rs	1.2	0.3

Ratio Analysis for ASTRA MICRO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.8x 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 2.2x during FY19, from 6.4x 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 2.3% during FY19, from 12.2% 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 5.6% during FY19, from 18.4% 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 3.9% during FY19, from 11.0% 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	3.8
Debtors’ Days	Days	1,938	2,390
Interest coverage	x	6.4	2.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.0	3.9
Return on equity	%	12.2	2.3
Return on capital employed	%	18.4	5.6

To see how ASTRA MICRO has performed over the last 5 years, please visit here.

ASTRA MICRO Share Price Performance

Over the last one year, ASTRA MICRO share price has moved up from Rs 76.7 to Rs 98.3, registering a gain of Rs 21.7 or around 28.2%.

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

(To know more, check out historical annual results for ASTRA MICRO and quarterly results for ASTRA MICRO)

Read: Latest Annual Report Analysis of ASTRA MICRO