CARE RATING 2018-19 Annual Report Analysis

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CARE RATING 2018-19 Annual Report Analysis
Mon, 7 Oct

CARE RATING 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.

CARE RATING Income Statement Analysis

  • Operating income during the year fell 4.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 17.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 54.8% in FY19 as against 63.3% in FY18.
  • Depreciation charges increased by 5.7% increased by 0.0% YoY, respectively.
  • Other income grew by 19.3% YoY.
  • Net profit for the year declined by 15.0% YoY.
  • Net profit margins during the year declined from 45.3% in FY18 to 39.5% in FY19.

CARE RATING Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 3,327 3,190 -4.1%
Other income Rs m 255 304 19.3%
Total Revenues Rs m 3,582 3,494 -2.5%
Gross profit Rs m 2,108 1,747 -17.1%
Depreciation Rs m 32 33 5.7%
Interest Rs m 0 0 0.0%
Profit before tax Rs m 2,331 2,017 -13.4%
Tax Rs m 707 637 -10.0%
Profit after tax Rs m 1,623 1,381 -15.0%
Gross profit margin % 63.3 54.8
Effective tax rate % 30.3 31.6
Net profit margin % 45.3 39.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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CARE RATING Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 489 million as compared to Rs 496 million in FY18, thereby witnessing an decrease of -1.3%.
  • Current assets fell 18% and stood at Rs 3 billion, while fixed assets rose 38% and stood at Rs 831 million in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 6 billion as against Rs 7 billion during FY18, thereby witnessing a fall of 7%.

CARE RATING Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 5,968 5,500 -7.9
 
Current Liabilities Rs m 496 489 -1.3
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 6,586 6,151 -6.6
 
Current assets Rs m 3,409 2,794 -18.1
Fixed Assets Rs m 602 831 38.0
Total Assets Rs m 6,586 6,151 -6.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CARE RATING Cash Flow Statement Analysis

  • CARE RATING's cash flow from operating activities (CFO) during FY19 stood at Rs 1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 826 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -42 million from the Rs 105 million net cash flows seen during FY18.

CARE RATING 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 1,338 1,086 -18.8%
Cash Flow from Investing Activities Rs m -246 826 -
Cash Flow from Financing Activities Rs m -987 -1,954 -
Net Cash Flow Rs m 105 -42 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for CARE RATING

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 46.9, an decline from the EPS of Rs 55.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 508.0, stands at 11.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 10.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.4 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 113.0 108.3
TTM Earnings per share Rs 55.1 46.9
Diluted earnings per share Rs 56.0 47.6
Price to Cash Flow x 9.0 10.4
TTM P/E ratio x 11.8 11.6
Price / Book Value ratio x 7.1 6.2
Market Cap Rs m 14,961 14,727
Dividends per share (Unadj.) Rs 55.0 30.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for CARE RATING

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 5.7x during FY19, from 6.9x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 25.1% during FY19, from 27.2% 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 36.7% during FY19, from 39.1% 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 22.4% during FY19, from 24.6% 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 6.9 5.7
Debtors’ Days Days 43 54
Interest coverage x 0.0 0.0
Debt to equity ratio x 0.0 0.0
Return on assets % 24.6 22.4
Return on equity % 27.2 25.1
Return on capital employed % 39.1 36.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how CARE RATING has performed over the last 5 years, please visit here.

CARE RATING Share Price Performance

Over the last one year, CARE RATING share price has moved down from Rs 1,115.7 to Rs 508.0, registering a loss of Rs 607.7 or around 54.5%.

Overall, the S&P BSE SENSEX is up 7.4% over the year.

(To know more, check out historical annual results for CARE RATING and quarterly results for CARE RATING)

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Related Views on News

CARE RATING Announces Quarterly Results (1QFY21); Net Profit Down 28.1% (Quarterly Result Update)

Sep 22, 2020 | Updated on Sep 22, 2020

For the quarter ended June 2020, CARE RATING has posted a net profit of Rs 97 m (down 28.1% YoY). Sales on the other hand came in at Rs 374 m (down 25.1% YoY). Read on for a complete analysis of CARE RATING's quarterly results.

CARE RATING Announces Quarterly Results (3QFY20); Net Profit Down 42.8% (Quarterly Result Update)

Feb 10, 2020 | Updated on Feb 10, 2020

For the quarter ended December 2019, CARE RATING has posted a net profit of Rs 176 m (down 42.8% YoY). Sales on the other hand came in at Rs 561 m (down 23.0% YoY). Read on for a complete analysis of CARE RATING's quarterly results.

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