AVANTI FEEDS 2018-19 Annual Report Analysis

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AVANTI FEEDS 2018-19 Annual Report Analysis
Mon, 16 Sep

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 40.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.7% in FY19 as against 20.1% in FY18.
  • Depreciation charges increased by 50.8% and finance costs decreased by 11.1% YoY, respectively.
  • Other income grew by 11.6% YoY.
  • Net profit for the year declined by 34.3% YoY.
  • Net profit margins during the year declined from 13.6% in FY18 to 8.7% 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 483 538 11.6%
Total Revenues Rs m 34,412 35,416 2.9%
Gross profit Rs m 6,826 4,073 -40.3%
Depreciation Rs m 238 358 50.8%
Interest Rs m 30 26 -11.1%
Profit before tax Rs m 7,042 4,226 -40.0%
Tax Rs m 2,380 1,214 -49.0%
Profit after tax Rs m 4,665 3,066 -34.3%
Gross profit margin % 20.1 11.7
Effective tax rate % 33.8 28.7
Net profit margin % 13.6 8.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 42.4%.
  • Current assets rose 1% and stood at Rs 12 billion, while fixed assets fell 4% and stood at Rs 3 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 -42.4
Total Liabilities Rs m 15,263 16,148 5.8
 
Current assets Rs m 11,623 11,795 1.5
Fixed Assets Rs m 3,453 3,330 -3.6
Total Assets Rs m 15,263 16,148 5.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for AVANTI FEEDS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 225.1, an decline from the EPS of Rs 513.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 364.3, stands at 15.6 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 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.5 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 3,736.7 2,560.8
TTM Earnings per share Rs 513.7 225.1
Diluted earnings per share Rs 34.2 22.5
Price to Cash Flow x 0.7 14.5
TTM P/E ratio x 1.0 15.6
Price / Book Value ratio x 1.6 1.6
Market Cap Rs m 3,308 49,636
Dividends per share (Unadj.) Rs 6.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 161.7x during FY19, from 238.9x 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 45.2% 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 35.7% 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 19.2% 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 5 5
Interest coverage x 238.9 161.7
Debt to equity ratio x 0.0 0.0
Return on assets % 30.8 19.2
Return on equity % 45.2 25.4
Return on capital employed % 68.5 35.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 410.7 to Rs 364.3, registering a loss of Rs 46.4 or around 11.3%.

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

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

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