AUTOMOTIVE AXLES 2018-19 Annual Report Analysis

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AUTOMOTIVE AXLES 2018-19 Annual Report Analysis
Mon, 16 Sep

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 27.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 37.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.8% in FY19 as against 11.0% in FY18.
  • Depreciation charges increased by 6.9% and finance costs increased by 9.1% YoY, respectively.
  • Other income declined by 33.6% YoY.
  • Net profit for the year grew by 44.8% YoY.
  • Net profit margins during the year grew from 5.5% in FY18 to 6.3% in FY19.

AUTOMOTIVE AXLES Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 15,194 19,390 27.6%
Other income Rs m 45 30 -33.6%
Total Revenues Rs m 15,239 19,420 27.4%
Gross profit Rs m 1,671 2,291 37.1%
Depreciation Rs m 432 462 6.9%
Interest Rs m 6 6 9.1%
Profit before tax Rs m 1,278 1,853 45.0%
Tax Rs m 439 638 45.3%
Profit after tax Rs m 839 1,216 44.8%
Gross profit margin % 11.0 11.8
Effective tax rate % 34.3 34.4
Net profit margin % 5.5 6.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 67% and stood at Rs 2 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 27%.

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 7,342 9,333 27.1
 
Current assets Rs m 5,731 6,437 12.3
Fixed Assets Rs m 1,343 2,243 67.0
Total Assets Rs m 7,342 9,333 27.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



AUTOMOTIVE AXLES Cash Flow Statement Analysis

  • AUTOMOTIVE AXLES's cash flow from operating activities (CFO) during FY19 stood at Rs 977 million, an improvement of 90.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -1 billion, an improvement of 448.6% 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 512 977 90.9%
Cash Flow from Investing Activities Rs m -272 -1,492 -
Cash Flow from Financing Activities Rs m -146 470 -
Net Cash Flow Rs m 94 -45 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for AUTOMOTIVE AXLES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 81.0, an improvement from the EPS of Rs 55.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 900.0, stands at 11.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 1.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.0 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 1,005.5 1,292.7
TTM Earnings per share Rs 55.5 81.0
Diluted earnings per share Rs 56.0 81.0
Price to Cash Flow x 10.7 8.0
TTM P/E ratio x 11.6 11.5
Price / Book Value ratio x 4.3 3.7
Market Cap Rs m 13,599 13,500
Dividends per share (Unadj.) Rs 13.5 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 309.9x during FY19, from 233.4x 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 improved and stood at 22.6% during FY19, from 18.9% 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 30.8% during FY19, from 28.9% 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 13.1% during FY19, from 11.5% 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 80 65
Interest coverage x 233.4 309.9
Debt to equity ratio x 0.0 0.1
Return on assets % 11.5 13.1
Return on equity % 18.9 22.6
Return on capital employed % 28.9 30.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 1,444.8 to Rs 900.0, registering a loss of Rs 544.8 or around 37.7%.

Overall, the S&P BSE SENSEX is down 2.4% over the year.

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

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