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ATUL AUTO 2018-19 Annual Report Analysis

Sun, 31 Mar

ATUL AUTO 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.

ATUL AUTO Income Statement Analysis

• Operating income during the year rose 22.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.2% in FY19 as against 13.4% in FY18.
• Depreciation charges increased by 5.3% and finance costs increased by 103.8% YoY, respectively.
• Other income grew by 149.9% YoY.
• Net profit for the year grew by 14.5% YoY.
• Net profit margins during the year declined from 8.5% in FY18 to 8.0% in FY19.

ATUL AUTO Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	5,426	6,668	22.9%
Other income	Rs m	27	68	149.9%
Total Revenues	Rs m	5,454	6,736	23.5%
Gross profit	Rs m	725	815	12.3%
Depreciation	Rs m	53	55	5.3%
Interest	Rs m	4	9	103.8%
Profit before tax	Rs m	696	819	17.7%
Tax	Rs m	232	288	24.0%
Profit after tax	Rs m	464	531	14.5%
Gross profit margin	%	13.4	12.2
Effective tax rate	%	33.4	35.2
Net profit margin	%	8.5	8.0

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ATUL AUTO Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 895 million as compared to Rs 744 million in FY18, thereby witnessing an increase of 20.2%.
• Current assets fell 1% and stood at Rs 2 billion, while fixed assets rose 52% and stood at Rs 2 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 4 billion as against Rs 3 billion during FY18, thereby witnessing a growth of 19%.

ATUL AUTO Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	2,208	2,620	18.6
Current Liabilities	Rs m	744	895	20.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,007	3,568	18.7
Current assets	Rs m	1,905	1,891	-0.8
Fixed Assets	Rs m	1,102	1,678	52.2
Total Assets	Rs m	3,007	3,568	18.7

ATUL AUTO Cash Flow Statement Analysis

• ATUL AUTO's cash flow from operating activities (CFO) during FY19 stood at Rs 352 million, an improvement of 34.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -277 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -145 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -70 million from the Rs -243 million net cash flows seen during FY18.

ATUL AUTO 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	261	352	34.8%
Cash Flow from Investing Activities	Rs m	-392	-277	-
Cash Flow from Financing Activities	Rs m	-112	-145	-
Net Cash Flow	Rs m	-243	-70	-

Current Valuations for ATUL AUTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.2, an improvement from the EPS of Rs 21.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 344.0, stands at 14.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 13.7 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	247.3	303.9
TTM Earnings per share	Rs	21.1	24.2
Diluted earnings per share	Rs	21.1	24.2
Price to Cash Flow	x	18.8	13.7
TTM P/E ratio	x	21.0	14.2
Price / Book Value ratio	x	4.5	3.1
Market Cap	Rs m	9,894	8,042
Dividends per share (Unadj.)	Rs	5.3	4.0

Ratio Analysis for ATUL AUTO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY19, from 2.6x 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 96.3x during FY19, from 165.9x 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 20.3% during FY19, from 21.0% 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 31.6% during FY19, from 31.7% 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 15.1% during FY19, from 15.6% 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	2.6	2.1
Debtors’ Days	Days	526	549
Interest coverage	x	165.9	96.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.6	15.1
Return on equity	%	21.0	20.3
Return on capital employed	%	31.7	31.6

To see how ATUL AUTO has performed over the last 5 years, please visit here.

ATUL AUTO Share Price Performance

Over the last one year, ATUL AUTO share price has moved down from Rs 441.6 to Rs 344.0, registering a loss of Rs 97.6 or around 22.1%.

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 ATUL AUTO and quarterly results for ATUL AUTO)

Read: Latest Annual Report Analysis of ATUL AUTO