BIRLA CORPORATION 2018-19 Annual Report Analysis

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BIRLA CORPORATION 2018-19 Annual Report Analysis
Mon, 23 Sep

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 14.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 17.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.5% in FY19 as against 14.1% 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 2.7% 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 57,342 65,487 14.2%
Other income Rs m 740 785 6.0%
Total Revenues Rs m 58,082 66,272 14.1%
Gross profit Rs m 8,081 9,486 17.4%
Depreciation Rs m 3,322 3,391 2.1%
Interest Rs m 3,776 3,705 -1.9%
Profit before tax Rs m 1,723 3,174 84.2%
Tax Rs m 59 617 948.2%
Profit after tax Rs m 1,540 2,557 66.1%
Gross profit margin % 14.1 14.5
Effective tax rate % 3.4 19.4
Net profit margin % 2.7 3.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 1% and stood at Rs 82 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 81,311 81,784 0.6
Total Assets Rs m 110,746 113,316 2.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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: Company Reports, Regulatory Filings, 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 601.3, stands at 14.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.8 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 744.6 850.4
TTM Earnings per share Rs 20.0 33.2
Diluted earnings per share Rs 20.0 33.2
Price to Cash Flow x 9.5 7.8
TTM P/E ratio x 14.8 14.8
Price / Book Value ratio x 1.8 1.1
Market Cap Rs m 46,302 46,299
Dividends per share (Unadj.) Rs 6.5 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 1.5x 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 12 15
Interest coverage x 1.5 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: Company Reports, Regulatory Filings, 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 689.6 to Rs 601.3, registering a loss of Rs 88.3 or around 12.8%.

Overall, the S&P BSE SENSEX is up 5.3% over the year.

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

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Related Views on News

BIRLA CORPORATION Announces Quarterly Results (4QFY20); Net Profit Up 51.9% (Quarterly Result Update)

May 26, 2020 | Updated on May 26, 2020

For the quarter ended March 2020, BIRLA CORPORATION has posted a net profit of Rs 2 bn (up 51.9% YoY). Sales on the other hand came in at Rs 17 bn (down 9.8% YoY). Read on for a complete analysis of BIRLA CORPORATION's quarterly results.

BIRLA CORPORATION Announces Quarterly Results (2QFY20); Net Profit Up 442.3% (Quarterly Result Update)

Nov 8, 2019 | Updated on Nov 8, 2019

For the quarter ended September 2019, BIRLA CORPORATION has posted a net profit of Rs 883 m (up 442.3% YoY). Sales on the other hand came in at Rs 16 bn (up 11.1% YoY). Read on for a complete analysis of BIRLA CORPORATION's quarterly results.

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