FORCE MOTORS 2018-19 Annual Report Analysis

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FORCE MOTORS 2018-19 Annual Report Analysis
Mon, 16 Sep

FORCE MOTORS 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.

FORCE MOTORS Income Statement Analysis

  • Operating income during the year rose 6.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 4.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.6% in FY19 as against 7.8% in FY18.
  • Depreciation charges increased by 16.8% and finance costs increased by 129.8% YoY, respectively.
  • Other income grew by 18.8% YoY.
  • Net profit for the year declined by 2.6% YoY.
  • Net profit margins during the year declined from 4.2% in FY18 to 3.8% in FY19.

FORCE MOTORS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 34,305 36,525 6.5%
Other income Rs m 687 816 18.8%
Total Revenues Rs m 34,993 37,341 6.7%
Gross profit Rs m 2,678 2,788 4.1%
Depreciation Rs m 1,293 1,509 16.8%
Interest Rs m 67 153 129.8%
Profit before tax Rs m 2,006 1,942 -3.2%
Tax Rs m 534 467 -12.5%
Profit after tax Rs m 1,472 1,434 -2.6%
Gross profit margin % 7.8 7.6
Effective tax rate % 26.6 24.1
Net profit margin % 4.2 3.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



FORCE MOTORS Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 7 billion as compared to Rs 7 billion in FY18, thereby witnessing an decrease of -4.4%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 0 million during FY18, a fall of 0.0%.
  • Current assets fell 3% and stood at Rs 11 billion, while fixed assets rose 20% and stood at Rs 16 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 28 billion as against Rs 25 billion during FY18, thereby witnessing a growth of 12%.

FORCE MOTORS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 18,011 19,332 7.3
 
Current Liabilities Rs m 6,830 6,531 -4.4
Long-term Debt Rs m 0 2,056 0.0
Total Liabilities Rs m 25,230 28,360 12.4
 
Current assets Rs m 11,266 10,914 -3.1
Fixed Assets Rs m 13,176 15,876 20.5
Total Assets Rs m 25,230 28,360 12.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



FORCE MOTORS Cash Flow Statement Analysis

  • FORCE MOTORS's cash flow from operating activities (CFO) during FY19 stood at Rs 3 billion, an improvement of 22.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -6 billion, an improvement of 651.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 3 billion, an improvement of 215% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -353 million from the Rs -470 million net cash flows seen during FY18.

FORCE MOTORS 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 2,565 3,140 22.4%
Cash Flow from Investing Activities Rs m -806 -6,056 -
Cash Flow from Financing Activities Rs m -2,229 2,563 -
Net Cash Flow Rs m -470 -353 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for FORCE MOTORS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 108.8, an decline from the EPS of Rs 111.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,197.0, stands at 11.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.3 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 2,602.8 2,771.2
TTM Earnings per share Rs 111.7 108.8
Diluted earnings per share Rs 111.7 108.8
Price to Cash Flow x 5.7 5.3
TTM P/E ratio x 11.8 11.8
Price / Book Value ratio x 2.8 1.5
Market Cap Rs m 15,776 15,776
Dividends per share (Unadj.) Rs 10.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for FORCE MOTORS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.7x during FY19, from 1.6x 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 13.7x during FY19, from 31.1x 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 declined and down at 7.4% during FY19, from 8.2% 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 9.6% during FY19, from 11.5% 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 5.6% during FY19, from 6.1% 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 1.6 1.7
Debtors’ Days Days 26 17
Interest coverage x 31.1 13.7
Debt to equity ratio x 0.0 0.1
Return on assets % 6.1 5.6
Return on equity % 8.2 7.4
Return on capital employed % 11.5 9.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how FORCE MOTORS has performed over the last 5 years, please visit here.

FORCE MOTORS Share Price Performance

Over the last one year, FORCE MOTORS share price has moved down from Rs 2,247.2 to Rs 1,197.0, registering a loss of Rs 1,050.2 or around 46.7%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 16,463.2 (down 0.5%). Over the last one year it has moved down from 24,246.9 to 16,463.2, a loss of 7,784 points (down 32.1%).

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

(To know more, check out historical annual results for FORCE MOTORS and quarterly results for FORCE MOTORS)

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Related Views on News

FORCE MOTORS Announces Quarterly Results (2QFY20); Net Profit Down 81.0% (Quarterly Result Update)

Oct 18, 2019 | Updated on Oct 18, 2019

For the quarter ended September 2019, FORCE MOTORS has posted a net profit of Rs 75 m (down 81.0% YoY). Sales on the other hand came in at Rs 8 bn (down 14.3% YoY). Read on for a complete analysis of FORCE MOTORS's quarterly results.

FORCE MOTORS Announces Quarterly Results (1QFY20); Net Profit Down 34.1% (Quarterly Result Update)

Jul 29, 2019 | Updated on Jul 29, 2019

For the quarter ended June 2019, FORCE MOTORS has posted a net profit of Rs 270 m (down 34.1% YoY). Sales on the other hand came in at Rs 8 bn (down 9.9% YoY). Read on for a complete analysis of FORCE MOTORS's quarterly results.

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