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BIRLA CORPORATION 2018-19 Annual Report Analysis
Sun, 31 Mar

BIRLA CORPORATION 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.

BIRLA CORPORATION Income Statement Analysis

  • Operating income during the year rose 18.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 19.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.5% in FY19 as against 14.4% in FY18.
  • Depreciation charges increased by 2.1% and finance costs decreased by 1.9% YoY, respectively.
  • Other income grew by 6.0% YoY.
  • Net profit for the year grew by 66.1% YoY.
  • Net profit margins during the year grew from 2.8% in FY18 to 3.9% in FY19.

BIRLA CORPORATION Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 55,210 65,487 18.6%
Other income Rs m 740 785 6.0%
Total Revenues Rs m 55,950 66,272 18.4%
Gross profit Rs m 7,956 9,486 19.2%
Depreciation Rs m 3,322 3,391 2.1%
Interest Rs m 3,776 3,705 -1.9%
Profit before tax Rs m 1,598 3,174 98.6%
Tax Rs m 59 617 948.2%
Profit after tax Rs m 1,540 2,557 66.1%
Gross profit margin % 14.4 14.5
Effective tax rate % 3.7 19.4
Net profit margin % 2.8 3.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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BIRLA CORPORATION Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 18 billion as compared to Rs 16 billion in FY18, thereby witnessing an increase of 12.2%.
  • Long-term debt down at Rs 36 billion as compared to Rs 38 billion during FY18, a fall of 5.4%.
  • Current assets rose 2% and stood at Rs 25 billion, while fixed assets rose 2% and stood at Rs 88 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 113 billion as against Rs 111 billion during FY18, thereby witnessing a growth of 2%.

BIRLA CORPORATION Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 42,798 44,952 5.0
 
Current Liabilities Rs m 15,914 17,852 12.2
Long-term Debt Rs m 38,298 36,232 -5.4
Total Liabilities Rs m 110,746 113,316 2.3
 
Current assets Rs m 24,539 25,045 2.1
Fixed Assets Rs m 86,206 88,271 2.4
Total Assets Rs m 110,746 113,316 2.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BIRLA CORPORATION Cash Flow Statement Analysis

  • BIRLA CORPORATION's cash flow from operating activities (CFO) during FY19 stood at Rs 11 billion, an improvement of 32.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -5 billion, an improvement of 131.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -5 billion, an improvement of 4% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -141 million from the Rs 153 million net cash flows seen during FY18.

BIRLA CORPORATION 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 8,049 10,641 32.2%
Cash Flow from Investing Activities Rs m -2,344 -5,434 -
Cash Flow from Financing Activities Rs m -5,552 -5,349 -
Net Cash Flow Rs m 153 -141 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BIRLA CORPORATION

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.2, an improvement from the EPS of Rs 20.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 525.1, stands at 15.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.1 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 716.9 850.4
TTM Earnings per share Rs 20.0 33.2
Diluted earnings per share Rs 20.0 33.2
Price to Cash Flow x 11.3 8.1
TTM P/E ratio x 35.7 15.8
Price / Book Value ratio x 1.8 1.1
Market Cap Rs m 76,043 48,465
Dividends per share (Unadj.) Rs 6.5 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BIRLA CORPORATION

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY19, from 1.5x 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 1.9x during FY19, from 1.4x 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 5.7% during FY19, from 3.6% 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 8.5% during FY19, from 6.6% 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 5.5% during FY19, from 4.8% 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 1.5 1.4
Debtors’ Days Days 1 1
Interest coverage x 1.4 1.9
Debt to equity ratio x 0.9 0.8
Return on assets % 4.8 5.5
Return on equity % 3.6 5.7
Return on capital employed % 6.6 8.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how BIRLA CORPORATION has performed over the last 5 years, please visit here.

BIRLA CORPORATION Share Price Performance

Over the last one year, BIRLA CORPORATION share price has moved down from Rs 713.3 to Rs 525.1, registering a loss of Rs 188.2 or around 26.4%.

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

(To know more, check out historical annual results for BIRLA CORPORATION and quarterly results for BIRLA CORPORATION)

Annual Report FAQs

What is the current share price of BIRLA CORPORATION?

BIRLA CORPORATION currently trades at Rs 1,410.6 per share. You can check out the latest share price performance of BIRLA CORPORATION here...

What was the revenue of BIRLA CORPORATION in FY19? How does it compare to earlier years?

The revenues of BIRLA CORPORATION stood at Rs 66,272 m in FY19, which was up 18.4% compared to Rs 55,950 m reported in FY18.

BIRLA CORPORATION's revenue has grown from Rs 28,860 m in FY15 to Rs 66,272 m in FY19.

Over the past 5 years, the revenue of BIRLA CORPORATION has grown at a CAGR of 23.1%.

What was the net profit of BIRLA CORPORATION in FY19? How does it compare to earlier years?

The net profit of BIRLA CORPORATION stood at Rs 2,557 m in FY19, which was up 66.1% compared to Rs 1,540 m reported in FY18.

This compares to a net profit of Rs 2,195 m in FY17 and a net profit of Rs 1,677 m in FY16.

Over the past 5 years, BIRLA CORPORATION net profit has grown at a CAGR of 9.9%.

What does the cash flow statement of BIRLA CORPORATION reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of BIRLA CORPORATION reveals:

  • Cash flow from operations increased in FY19 and stood at Rs 10,641 m as compared to Rs 8,049 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -5,434 m as compared to Rs -2,344 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs -5,349 m as compared to Rs -5,552 m in FY18.

Here's the cash flow statement of BIRLA CORPORATION for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations2,8182,4876,7738,04910,641
From Investments-110-110-9,816-2,344-5,434
From Financial Activity-2,651-2,0192,803-5,552-5,349
Net Cashflow57358-240153-141

What does the Key Ratio analysis of BIRLA CORPORATION reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of BIRLA CORPORATION reveals:

  • Operating profit margins witnessed a fall and down at 14.5% in FY19 as against 14.4% in FY18.
  • Net profit margins grew from 2.8% in FY18 to 3.9% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.8 as compared to 0.9 in FY18.

Here's the ratio/financial analysis of BIRLA CORPORATION for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)10.59.216.614.414.5
Net Profit Margin (%)6.46.05.92.83.9
Debt to Equity Ratio (x)0.40.31.20.90.8

Read: Latest Annual Report Analysis of BIRLA CORPORATION

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