ATUL AUTO 2018-19 Annual Report Analysis

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ATUL AUTO 2018-19 Annual Report Analysis
Mon, 16 Sep

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 20.0% 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 12.3% in FY19 as against 13.2% in FY18.
  • Depreciation charges increased by 5.3% and finance costs increased by 104.8% YoY, respectively.
  • Other income grew by 167.3% YoY.
  • Net profit for the year grew by 15.0% YoY.
  • Net profit margins during the year declined from 8.6% in FY18 to 8.2% in FY19.

ATUL AUTO Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 5,512 6,613 20.0%
Other income Rs m 26 69 167.3%
Total Revenues Rs m 5,538 6,682 20.7%
Gross profit Rs m 725 815 12.3%
Depreciation Rs m 53 55 5.3%
Interest Rs m 4 9 104.8%
Profit before tax Rs m 694 820 18.0%
Tax Rs m 232 288 24.1%
Profit after tax Rs m 479 551 15.0%
Gross profit margin % 13.2 12.3
Effective tax rate % 33.5 35.2
Net profit margin % 8.6 8.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 rose 31% and stood at Rs 2 billion, while fixed assets rose 42% and stood at Rs 1 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 1,445 1,890 30.8
Fixed Assets Rs m 918 1,303 41.9
Total Assets Rs m 3,007 3,568 18.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ATUL AUTO Cash Flow Statement Analysis

  • ATUL AUTO's cash flow from operating activities (CFO) during FY19 stood at Rs 346 million, an improvement of 32.3% 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 -139 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 261 346 32.3%
Cash Flow from Investing Activities Rs m -392 -277 -
Cash Flow from Financing Activities Rs m -112 -139 -
Net Cash Flow Rs m -243 -70 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ATUL AUTO

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.1, an improvement from the EPS of Rs 21.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 224.2, stands at 9.1 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 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.4 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 251.2 301.4
TTM Earnings per share Rs 21.8 25.1
Diluted earnings per share Rs 21.8 25.1
Price to Cash Flow x 9.6 8.4
TTM P/E ratio x 9.1 9.1
Price / Book Value ratio x 4.5 3.1
Market Cap Rs m 4,919 4,919
Dividends per share (Unadj.) Rs 5.3 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ATUL AUTO

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.1x during FY19, from 1.9x 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 166.3x 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 21.0% during FY19, from 21.7% 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 32.3% during FY19, from 32.4% 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 15.7% during FY19, from 16.1% 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 1.9 2.1
Debtors’ Days Days 52 55
Interest coverage x 166.3 96.3
Debt to equity ratio x 0.0 0.0
Return on assets % 16.1 15.7
Return on equity % 21.7 21.0
Return on capital employed % 32.4 32.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 380.6 to Rs 224.2, registering a loss of Rs 156.4 or around 41.1%.

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 ATUL AUTO and quarterly results for ATUL AUTO)

Equitymaster requests your view! Post a comment on "ATUL AUTO 2018-19 Annual Report Analysis". Click here!

1 Responses to "ATUL AUTO 2018-19 Annual Report Analysis"

Seshan Balakrishnan

Nov 27, 2019

You have mentioned in your research report that Atul Auto has been debt free for quite a few years. Given this background - what is the relevance of Interest coverage ratio? Also plz explain detoriation of Interest coverage ratio

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