Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  


3M INDIA 2018-19 Annual Report Analysis
Sun, 31 Mar

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 10.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 5.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.8% in FY19 as against 18.5% in FY18.
  • Depreciation charges increased by 0.6% and finance costs decreased by 44.7% YoY, respectively.
  • Other income grew by 29.0% YoY.
  • Net profit for the year grew by 9.8% YoY.
  • Net profit margins during the year declined from 12.2% in FY18 to 12.1% in FY19.

3M INDIA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 27,342 30,168 10.3%
Other income Rs m 538 695 29.0%
Total Revenues Rs m 27,880 30,863 10.7%
Gross profit Rs m 5,062 5,356 5.8%
Depreciation Rs m 435 438 0.6%
Interest Rs m 20 11 -44.7%
Profit before tax Rs m 5,145 5,602 8.9%
Tax Rs m 1,811 1,940 7.1%
Profit after tax Rs m 3,334 3,662 9.8%
Gross profit margin % 18.5 17.8
Effective tax rate % 35.2 34.6
Net profit margin % 12.2 12.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

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 rose 4% and stood at Rs 4 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 9%.

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 22,917 20,876 -8.9
 
Current assets Rs m 18,763 16,568 -11.7
Fixed Assets Rs m 4,154 4,308 3.7
Total Assets Rs m 22,917 20,876 -8.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 598.9% 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 258% 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 2,530 598.9%
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: Accord Fintech, Equitymaster



Current Valuations for 3M INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 324.9, an improvement from the EPS of Rs 295.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 24,067.9, stands at 81.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 18.9 times, while the price to sales ratio stands at 9.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 61.7 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 2,426.1 2,676.9
TTM Earnings per share Rs 295.8 324.9
Diluted earnings per share Rs 295.9 325.1
Price to Cash Flow x 57.9 61.7
TTM P/E ratio x 70.3 81.2
Price / Book Value ratio x 17.8 17.6
Market Cap Rs m 190,352 252,862
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 499.8x during FY19, from 254.6x 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 25.6% during FY19, from 31.3% 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 39.0% during FY19, from 48.2% 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 17.6% during FY19, from 14.6% 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 758 710
Interest coverage x 254.6 499.8
Debt to equity ratio x 0.0 0.0
Return on assets % 14.6 17.6
Return on equity % 31.3 25.6
Return on capital employed % 48.2 39.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 19,383.6 to Rs 24,067.9, registering a gain of Rs 4,684.3 or around 24.2%.

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

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

Annual Report FAQs

What is the current share price of 3M INDIA?

3M INDIA currently trades at Rs 31,252.7 per share. You can check out the latest share price performance of 3M INDIA here...

What was the revenue of 3M INDIA in FY19? How does it compare to earlier years?

The revenues of 3M INDIA stood at Rs 30,863 m in FY19, which was up 10.7% compared to Rs 27,880 m reported in FY18.

3M INDIA's revenue has grown from Rs 17,672 m in FY15 to Rs 30,863 m in FY19.

Over the past 5 years, the revenue of 3M INDIA has grown at a CAGR of 15.0%.

What was the net profit of 3M INDIA in FY19? How does it compare to earlier years?

The net profit of 3M INDIA stood at Rs 3,662 m in FY19, which was up 9.8% compared to Rs 3,334 m reported in FY18.

This compares to a net profit of Rs 2,408 m in FY17 and a net profit of Rs 1,948 m in FY16.

Over the past 5 years, 3M INDIA net profit has grown at a CAGR of 35.6%.

What does the cash flow statement of 3M INDIA 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 3M INDIA reveals:

  • Cash flow from operations increased in FY19 and stood at Rs 2,530 m as compared to Rs 362 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -5,534 m as compared to Rs 251 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs 32 m as compared to Rs -21 m in FY18.

Here's the cash flow statement of 3M INDIA for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations1,7742,6093,6493622,530
From Investments-4314120251-5,534
From Financial Activity-1,189-53-37-2132
Net Cashflow5422,5703,733592-2,972

What does the Key Ratio analysis of 3M INDIA 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 3M INDIA reveals:

  • Operating profit margins witnessed a fall and stood at 17.8% in FY19 as against 18.5% in FY18.
  • Net profit margins declined from 12.2% in FY18 to 12.1% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of 3M INDIA for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)11.616.416.318.517.8
Net Profit Margin (%)6.29.510.612.212.1
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of 3M INDIA

Equitymaster requests your view! Post a comment on "3M INDIA 2018-19 Annual Report Analysis". Click here!