3M INDIA 2018-19 Annual Report Analysis

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

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Markets will remain closed on 10th April, 2020 on account of Good Friday.

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)

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

  

Related Views on News

3M INDIA Announces Quarterly Results (3QFY20); Net Profit Down 34.7% (Quarterly Result Update)

Feb 12, 2020 | Updated on Feb 12, 2020

For the quarter ended December 2019, 3M INDIA has posted a net profit of Rs 719 m (down 34.7% YoY). Sales on the other hand came in at Rs 7 bn (down 5.8% YoY). Read on for a complete analysis of 3M INDIA's quarterly results.

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.

More Views on News

Most Popular

Sorry Warren Buffett, I'm Following This Man Instead of You in 2020(The 5 Minute Wrapup)

Mar 30, 2020

This man warned of an impending market correction while everyone else was celebrating the renewed optimism in early 2020...

One Stock that is All Charged Up for the Post Coronavirus Rebound(The 5 Minute Wrapup)

Apr 1, 2020

A stock with strong moat is currently trading near 5-year lows.

A Safe Stock to Lockdown Now(The 5 Minute Wrapup)

Apr 2, 2020

The market crashc has made strong, established brands attractive. Here's a stock to make the most of this opportunity...

The Insiders See a Buying Opportunity in These Smallcaps Amid Coronavirus Outbreak(Profit Hunter)

Mar 31, 2020

The promoters are buying these smallcaps amid the coronavirus outbreak.

How to Identify a Market Rebound(Fast Profits Daily)

Mar 27, 2020

This very useful indicator can spot a market bottom.

More

How to Trade the
Coronavirus Crash

Coronavirus Crash
Get this special report, authored by Equitymaster's top analysts, now.
We will never sell or rent your email id.
Please read our Terms

TRACK 3M INDIA

  • Track your investment in 3M INDIA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

3M INDIA - BAJAJ FINSERV COMPARISON

COMPARE 3M INDIA WITH

MARKET STATS