ATUL 2018-19 Annual Report Analysis

Sun, 31 Mar

ATUL 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 Income Statement Analysis

• Operating income during the year rose 24.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 51.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.0% in FY19 as against 15.5% in FY18.
• Depreciation charges increased by 7.7% and finance costs decreased by 41.8% YoY, respectively.
• Other income grew by 34.5% YoY.
• Net profit for the year grew by 55.6% YoY.
• Net profit margins during the year grew from 8.5% in FY18 to 10.7% in FY19.

ATUL Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	32,536	40,378	24.1%
Other income	Rs m	259	349	34.5%
Total Revenues	Rs m	32,795	40,727	24.2%
Gross profit	Rs m	5,052	7,668	51.8%
Depreciation	Rs m	1,104	1,189	7.7%
Interest	Rs m	127	74	-41.8%
Profit before tax	Rs m	4,080	6,753	65.5%
Tax	Rs m	1,310	2,443	86.5%
Profit after tax	Rs m	2,770	4,310	55.6%
Gross profit margin	%	15.5	19.0
Effective tax rate	%	32.1	36.2
Net profit margin	%	8.5	10.7

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ATUL Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 8 billion as compared to Rs 7 billion in FY18, thereby witnessing an increase of 23.2%.
• Long-term debt stood at Rs 431 million as compared to Rs 0 million during FY18, a fall of 0.0%.
• Current assets rose 31% and stood at Rs 19 billion, while fixed assets rose 14% and stood at Rs 19 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 38 billion as against Rs 31 billion during FY18, thereby witnessing a growth of 22%.

ATUL Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	22,439	27,057	20.6
Current Liabilities	Rs m	6,722	8,283	23.2
Long-term Debt	Rs m	0	431	0.0
Total Liabilities	Rs m	31,120	37,945	21.9
Current assets	Rs m	14,589	19,134	31.1
Fixed Assets	Rs m	16,531	18,812	13.8
Total Assets	Rs m	31,120	37,945	21.9

ATUL Cash Flow Statement Analysis

• ATUL's cash flow from operating activities (CFO) during FY19 stood at Rs 4 billion, an improvement of 13.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -4 billion, an improvement of 213.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -11 million, an improvement of 99% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -51 million from the Rs 192 million net cash flows seen during FY18.

ATUL 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	3,557	4,036	13.5%
Cash Flow from Investing Activities	Rs m	-1,301	-4,075	-
Cash Flow from Financing Activities	Rs m	-2,074	-11	-
Net Cash Flow	Rs m	192	-51	-

Current Valuations for ATUL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 145.3, an improvement from the EPS of Rs 93.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,572.9, stands at 24.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 16.8 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	1,097.0	1,361.4
TTM Earnings per share	Rs	93.4	145.3
Diluted earnings per share	Rs	93.9	146.0
Price to Cash Flow	x	20.0	16.8
TTM P/E ratio	x	28.6	24.6
Price / Book Value ratio	x	3.3	3.4
Market Cap	Rs m	74,781	92,444
Dividends per share (Unadj.)	Rs	12.0	15.0

Ratio Analysis for ATUL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY19, from 2.2x 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 improved and stood at 92.1x during FY19, from 33.0x 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 15.9% during FY19, from 12.3% 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 improved and stood at 24.8% during FY19, from 18.7% 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 improved and stood at 11.6% during FY19, from 9.3% 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	2.2	2.3
Debtors’ Days	Days	8	6
Interest coverage	x	33.0	92.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.3	11.6
Return on equity	%	12.3	15.9
Return on capital employed	%	18.7	24.8

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

ATUL Share Price Performance

Over the last one year, ATUL share price has moved up from Rs 2,622.0 to Rs 3,572.9, registering a gain of Rs 950.9 or around 36.3%.

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

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

Read: Latest Annual Report Analysis of ATUL