AVANTI FEEDS 2018-19 Annual Report Analysis

Sun, 31 Mar

AVANTI FEEDS 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.

AVANTI FEEDS Income Statement Analysis

• Operating income during the year rose 2.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 39.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.9% in FY19 as against 20.0% in FY18.
• Depreciation charges increased by 50.9% and finance costs increased by 2.5% YoY, respectively.
• Other income grew by 4.1% YoY.
• Net profit for the year declined by 34.2% YoY.
• Net profit margins during the year declined from 13.7% in FY18 to 8.8% in FY19.

AVANTI FEEDS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	33,929	34,878	2.8%
Other income	Rs m	519	541	4.1%
Total Revenues	Rs m	34,448	35,419	2.8%
Gross profit	Rs m	6,800	4,145	-39.0%
Depreciation	Rs m	238	358	50.9%
Interest	Rs m	48	49	2.5%
Profit before tax	Rs m	7,034	4,278	-39.2%
Tax	Rs m	2,380	1,214	-49.0%
Profit after tax	Rs m	4,654	3,064	-34.2%
Gross profit margin	%	20.0	11.9
Effective tax rate	%	33.8	28.4
Net profit margin	%	13.7	8.8

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AVANTI FEEDS Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 2 billion as compared to Rs 3 billion in FY18, thereby witnessing an decrease of -32.9%.
• Long-term debt down at Rs 11 million as compared to Rs 18 million during FY18, a fall of 42.5%.
• Current assets rose 1% and stood at Rs 12 billion, while fixed assets rose 20% and stood at Rs 4 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 16 billion as against Rs 15 billion during FY18, thereby witnessing a growth of 6%.

AVANTI FEEDS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	10,315	12,060	16.9
Current Liabilities	Rs m	3,279	2,199	-32.9
Long-term Debt	Rs m	18	11	-42.5
Total Liabilities	Rs m	15,263	16,148	5.8
Current assets	Rs m	11,623	11,796	1.5
Fixed Assets	Rs m	3,639	4,352	19.6
Total Assets	Rs m	15,263	16,148	5.8

AVANTI FEEDS Cash Flow Statement Analysis

• AVANTI FEEDS's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -268 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 512 million from the Rs -338 million net cash flows seen during FY18.

AVANTI FEEDS 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	2,809	1,838	-34.6%
Cash Flow from Investing Activities	Rs m	-2,693	-268	-
Cash Flow from Financing Activities	Rs m	-455	-1,058	-
Net Cash Flow	Rs m	-338	512	-

Current Valuations for AVANTI FEEDS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.5, an decline from the EPS of Rs 102.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 407.9, stands at 18.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 56.4 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	747.0	256.0
TTM Earnings per share	Rs	102.5	22.5
Diluted earnings per share	Rs	34.2	22.5
Price to Cash Flow	x	62.2	56.4
TTM P/E ratio	x	65.3	18.1
Price / Book Value ratio	x	8.2	16.0
Market Cap	Rs m	85,039	192,890
Dividends per share (Unadj.)	Rs	6.0	4.0

Ratio Analysis for AVANTI FEEDS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.4x during FY19, from 3.5x 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 deteriorated and stood at 88.0x during FY19, from 147.7x 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 25.4% during FY19, from 45.1% 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 35.8% during FY19, from 68.5% 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 declined and down at 19.3% during FY19, from 30.8% 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	3.5	5.4
Debtors’ Days	Days	54	51
Interest coverage	x	147.7	88.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	30.8	19.3
Return on equity	%	45.1	25.4
Return on capital employed	%	68.5	35.8

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

AVANTI FEEDS Share Price Performance

Over the last one year, AVANTI FEEDS share price has moved down from Rs 2,232.1 to Rs 407.9, registering a loss of Rs 1,824.3 or around 81.7%.

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

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

Read: Latest Annual Report Analysis of AVANTI FEEDS