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3M INDIA 2018-19 Annual Report Analysis

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3M INDIA 2018-19 Annual Report Analysis
Thu, 18 Jul

3M INDIA 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.

3M INDIA Income Statement Analysis

  • Operating income during the year rose 11.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 7.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.8% in FY19 as against 18.4% in FY18.
  • Depreciation charges increased by 0.6% and finance costs decreased by 44.8% YoY, respectively.
  • Other income declined by 17.8% YoY.
  • Net profit for the year grew by 6.1% YoY.
  • Net profit margins during the year declined from 11.7% in FY18 to 11.2% in FY19.

3M INDIA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 27,098 30,168 11.3%
Other income Rs m 448 368 -17.8%
Total Revenues Rs m 27,546 30,537 10.9%
Gross profit Rs m 4,986 5,356 7.4%
Depreciation Rs m 435 438 0.6%
Interest Rs m 20 11 -44.8%
Profit before tax Rs m 4,979 5,275 6.0%
Tax Rs m 1,746 1,844 5.6%
Profit after tax Rs m 3,233 3,432 6.1%
Gross profit margin % 18.4 17.8
Effective tax rate % 35.1 35.0
Net profit margin % 11.7 11.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



3M INDIA Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 6 billion as compared to Rs 12 billion in FY18, thereby witnessing an decrease of -46.6%.
  • Long-term debt stood at Rs 76 million as compared to Rs 52 million during FY18, a growth of 45.2%.
  • Current assets fell 12% and stood at Rs 17 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 21 billion as against Rs 23 billion during FY18, thereby witnessing a fall of 8%.

3M INDIA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 10,667 14,328 34.3
 
Current Liabilities Rs m 12,149 6,490 -46.6
Long-term Debt Rs m 52 76 45.2
Total Liabilities Rs m 23,106 21,183 -8.3
 
Current assets Rs m 18,763 16,568 -11.7
Fixed Assets Rs m 3,093 2,984 -3.5
Total Assets Rs m 23,106 21,183 -8.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



3M INDIA Cash Flow Statement Analysis

  • 3M INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 3 billion, an improvement of 598.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -6 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 32 million, an improvement of 257% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -3 billion from the Rs 592 million net cash flows seen during FY18.

3M INDIA 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 362 2,530 598.8%
Cash Flow from Investing Activities Rs m 251 -5,534 -
Cash Flow from Financing Activities Rs m -21 32 -
Net Cash Flow Rs m 592 -2,972 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for 3M INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 304.5, an improvement from the EPS of Rs 286.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 22,177.0, stands at 74.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 17.7 times, while the price to sales ratio stands at 8.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 64.6 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 2,404.5 2,676.9
TTM Earnings per share Rs 286.9 304.5
Diluted earnings per share Rs 287.0 304.6
Price to Cash Flow x 68.1 64.6
TTM P/E ratio x 74.8 74.8
Price / Book Value ratio x 17.9 17.7
Market Cap Rs m 249,935 249,824
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for 3M INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.6x 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 472.0x during FY19, from 246.3x 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 23.9% during FY19, from 30.3% 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 36.7% during FY19, from 46.6% 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 16.3% during FY19, from 14.1% 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 1.5 2.6
Debtors’ Days Days 77 71
Interest coverage x 246.3 472.0
Debt to equity ratio x 0.0 0.0
Return on assets % 14.1 16.3
Return on equity % 30.3 23.9
Return on capital employed % 46.6 36.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how 3M INDIA has performed over the last 5 years, please visit here.

3M INDIA Share Price Performance

Over the last one year, 3M INDIA share price has moved up from Rs 20,360.1 to Rs 22,177.0, registering a gain of Rs 1,816.9 or around 8.9%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for 3M INDIA and quarterly results for 3M INDIA)

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Related Views on News

3M INDIA Announces Quarterly Results (1QFY20); Net Profit Down 9.5% (Quarterly Result Update)

Aug 16, 2019 | Updated on Aug 16, 2019

For the quarter ended June 2019, 3M INDIA has posted a net profit of Rs 901 m (down 9.5% YoY). Sales on the other hand came in at Rs 8 bn (up 14.8% YoY). Read on for a complete analysis of 3M INDIA's quarterly results.

3M INDIA Announces Quarterly Results (4QFY19); Net Profit Down 35.2% (Quarterly Result Update)

May 30, 2019 | Updated on May 30, 2019

For the quarter ended March 2019, 3M INDIA has posted a net profit of Rs 603 m (down 35.2% YoY). Sales on the other hand came in at Rs 7 bn (up 9.5% YoY). Read on for a complete analysis of 3M INDIA's quarterly results.

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