AUTO CORP. OF GOA 2018-19 Annual Report Analysis

Sun, 31 Mar

AUTO CORP. OF GOA 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.

AUTO CORP. OF GOA Income Statement Analysis

• Operating income during the year fell 11.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 10.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.4% in FY19 as against 6.3% in FY18.
• Depreciation charges decreased by 0.6% and finance costs decreased by 62.6% YoY, respectively.
• Other income grew by 21.7% YoY.
• Net profit for the year grew by 3.5% YoY.
• Net profit margins during the year grew from 4.2% in FY18 to 4.9% in FY19.

AUTO CORP. OF GOA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	4,790	4,262	-11.0%
Other income	Rs m	82	100	21.7%
Total Revenues	Rs m	4,872	4,362	-10.5%
Gross profit	Rs m	303	272	-10.2%
Depreciation	Rs m	53	53	-0.6%
Interest	Rs m	4	1	-62.6%
Profit before tax	Rs m	328	317	-3.2%
Tax	Rs m	126	109	-13.9%
Profit after tax	Rs m	202	209	3.5%
Gross profit margin	%	6.3	6.4
Effective tax rate	%	38.5	34.2
Net profit margin	%	4.2	4.9

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AUTO CORP. OF GOA Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 776 million as compared to Rs 945 million in FY18, thereby witnessing an decrease of -17.9%.
• Current assets fell 3% and stood at Rs 2 billion, while fixed assets fell 6% and stood at Rs 675 million in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 3 billion as against Rs 3 billion during FY18, thereby witnessing a fall of 3%.

AUTO CORP. OF GOA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	2,038	2,103	3.2
Current Liabilities	Rs m	945	776	-17.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,106	2,999	-3.5
Current assets	Rs m	2,388	2,323	-2.7
Fixed Assets	Rs m	718	675	-6.0
Total Assets	Rs m	3,106	2,999	-3.5

AUTO CORP. OF GOA Cash Flow Statement Analysis

• AUTO CORP. OF GOA's cash flow from operating activities (CFO) during FY19 stood at Rs -47 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 259 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -196 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 17 million from the Rs 0 million net cash flows seen during FY18.

AUTO CORP. OF GOA 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	397	-47	-
Cash Flow from Investing Activities	Rs m	-294	259	-
Cash Flow from Financing Activities	Rs m	-102	-196	-
Net Cash Flow	Rs m	0	17	33,380.0%

Current Valuations for AUTO CORP. OF GOA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.5, an improvement from the EPS of Rs 31.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 560.0, stands at 16.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 23.4 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	746.1	663.8
TTM Earnings per share	Rs	31.4	32.5
Diluted earnings per share	Rs	33.1	34.3
Price to Cash Flow	x	26.7	23.4
TTM P/E ratio	x	39.2	16.3
Price / Book Value ratio	x	3.6	2.9
Market Cap	Rs m	7,343	6,110
Dividends per share (Unadj.)	Rs	17.5	17.5

Ratio Analysis for AUTO CORP. OF GOA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY19, from 2.5x 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 221.4x during FY19, from 86.1x 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 9.9% during FY19, from 9.9% 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 declined and down at 15.2% during FY19, from 16.3% 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 7.0% during FY19, from 6.6% 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	2.5	3.0
Debtors’ Days	Days	44,391,570	580
Interest coverage	x	86.1	221.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.6	7.0
Return on equity	%	9.9	9.9
Return on capital employed	%	16.3	15.2

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

AUTO CORP. OF GOA Share Price Performance

Over the last one year, AUTO CORP. OF GOA share price has moved down from Rs 1,115.5 to Rs 560.0, registering a loss of Rs 555.5 or around 49.8%.

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

(To know more, check out historical annual results for AUTO CORP. OF GOA and quarterly results for AUTO CORP. OF GOA)

Read: Latest Annual Report Analysis of AUTO CORP. OF GOA