AUTOMOTIVE AXLES 2018-19 Annual Report Analysis

Sun, 31 Mar

AUTOMOTIVE AXLES 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.

AUTOMOTIVE AXLES Income Statement Analysis

• Operating income during the year rose 30.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.7% in FY19 as against 11.1% in FY18.
• Depreciation charges increased by 7.5% and finance costs increased by 0.2% YoY, respectively.
• Other income declined by 34.5% YoY.
• Net profit for the year grew by 44.2% YoY.
• Net profit margins during the year grew from 5.5% in FY18 to 6.1% in FY19.

AUTOMOTIVE AXLES Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	14,852	19,390	30.6%
Other income	Rs m	45	30	-34.5%
Total Revenues	Rs m	14,897	19,420	30.4%
Gross profit	Rs m	1,652	2,262	37.0%
Depreciation	Rs m	429	462	7.5%
Interest	Rs m	5	5	0.2%
Profit before tax	Rs m	1,262	1,825	44.6%
Tax	Rs m	439	638	45.3%
Profit after tax	Rs m	823	1,187	44.2%
Gross profit margin	%	11.1	11.7
Effective tax rate	%	34.8	34.9
Net profit margin	%	5.5	6.1

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AUTOMOTIVE AXLES Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 3 billion as compared to Rs 3 billion in FY18, thereby witnessing an increase of 12.9%.
• Long-term debt stood at Rs 659 million as compared to Rs 0 million during FY18, a fall of 0.0%.
• Current assets rose 12% and stood at Rs 6 billion, while fixed assets rose 77% and stood at Rs 3 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 9 billion as against Rs 7 billion during FY18, thereby witnessing a growth of 26%.

AUTOMOTIVE AXLES Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	4,443	5,384	21.2
Current Liabilities	Rs m	2,846	3,213	12.9
Long-term Debt	Rs m	0	659	0.0
Total Liabilities	Rs m	7,283	9,185	26.1
Current assets	Rs m	5,731	6,437	12.3
Fixed Assets	Rs m	1,552	2,748	77.0
Total Assets	Rs m	7,283	9,185	26.1

AUTOMOTIVE AXLES Cash Flow Statement Analysis

• AUTOMOTIVE AXLES's cash flow from operating activities (CFO) during FY19 stood at Rs 1 billion, an improvement of 106.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -2 billion, an improvement of 477.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 470 million, an improvement of 422% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -45 million from the Rs 94 million net cash flows seen during FY18.

AUTOMOTIVE AXLES 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	512	1,056	106.3%
Cash Flow from Investing Activities	Rs m	-272	-1,571	-
Cash Flow from Financing Activities	Rs m	-146	470	-
Net Cash Flow	Rs m	94	-45	-

Current Valuations for AUTOMOTIVE AXLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 78.6, an improvement from the EPS of Rs 54.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,245.9, stands at 15.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 12.3 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	982.9	1,283.3
TTM Earnings per share	Rs	54.5	78.6
Diluted earnings per share	Rs	54.5	78.5
Price to Cash Flow	x	17.6	12.3
TTM P/E ratio	x	26.3	15.5
Price / Book Value ratio	x	4.3	3.8
Market Cap	Rs m	18,972	20,240
Dividends per share (Unadj.)	Rs	13.5	19.5

Ratio Analysis for AUTOMOTIVE AXLES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY19, from 2.0x 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 improved and stood at 333.3x during FY19, from 231.3x 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 improved and stood at 22.0% during FY19, from 18.5% 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 30.3% during FY19, from 28.5% 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 13.0% during FY19, from 11.4% 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	2.0	2.0
Debtors’ Days	Days	82	65
Interest coverage	x	231.3	333.3
Debt to equity ratio	x	0.0	0.1
Return on assets	%	11.4	13.0
Return on equity	%	18.5	22.0
Return on capital employed	%	28.5	30.3

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

AUTOMOTIVE AXLES Share Price Performance

Over the last one year, AUTOMOTIVE AXLES share price has moved down from Rs 1,459.8 to Rs 1,245.9, registering a loss of Rs 213.9 or around 14.7%.

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

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

Read: Latest Annual Report Analysis of AUTOMOTIVE AXLES