CONTAINER CORPORATION 2018-19 Annual Report Analysis

Sun, 31 Mar

CONTAINER CORPORATION 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.

CONTAINER CORPORATION Income Statement Analysis

• Operating income during the year rose 5.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.7% in FY19 as against 22.6% in FY18.
• Depreciation charges increased by 7.7% and finance costs increased by 8.9% YoY, respectively.
• Other income grew by 10.5% YoY.
• Net profit for the year grew by 16.9% YoY.
• Net profit margins during the year grew from 15.2% in FY18 to 16.9% in FY19.

CONTAINER CORPORATION Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	66,125	69,561	5.2%
Other income	Rs m	2,868	3,170	10.5%
Total Revenues	Rs m	68,993	72,731	5.4%
Gross profit	Rs m	14,924	17,910	20.0%
Depreciation	Rs m	4,200	4,523	7.7%
Interest	Rs m	63	69	8.9%
Profit before tax	Rs m	13,529	16,489	21.9%
Tax	Rs m	3,486	4,744	36.1%
Profit after tax	Rs m	10,043	11,745	16.9%
Gross profit margin	%	22.6	25.7
Effective tax rate	%	25.8	28.8
Net profit margin	%	15.2	16.9

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CONTAINER CORPORATION Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 20 billion as compared to Rs 12 billion in FY18, thereby witnessing an increase of 75.6%.
• Long-term debt stood at Rs 700 million as compared to Rs 620 million during FY18, a growth of 12.9%.
• Current assets rose 45% and stood at Rs 47 billion, while fixed assets rose 5% and stood at Rs 81 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 128 billion as against Rs 109 billion during FY18, thereby witnessing a growth of 17%.

CONTAINER CORPORATION Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	93,218	103,274	10.8
Current Liabilities	Rs m	11,637	20,436	75.6
Long-term Debt	Rs m	620	700	12.9
Total Liabilities	Rs m	109,176	127,975	17.2
Current assets	Rs m	32,636	47,469	45.4
Fixed Assets	Rs m	76,540	80,506	5.2
Total Assets	Rs m	109,176	127,975	17.2

CONTAINER CORPORATION Cash Flow Statement Analysis

• CONTAINER CORPORATION's cash flow from operating activities (CFO) during FY19 stood at Rs -19 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 14 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 5 billion, an improvement of 198% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -793 million from the Rs 757 million net cash flows seen during FY18.

CONTAINER CORPORATION 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	13,133	-19,414	-
Cash Flow from Investing Activities	Rs m	-7,452	13,815	-
Cash Flow from Financing Activities	Rs m	-4,924	4,807	-
Net Cash Flow	Rs m	757	-793	-

Current Valuations for CONTAINER CORPORATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.3, an decline from the EPS of Rs 41.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 524.7, stands at 26.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 4.6 times.
• The company's price to cash flow (P/CF) ratio stood at 35.3 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	271.3	114.2
TTM Earnings per share	Rs	41.2	19.3
Diluted earnings per share	Rs	16.5	19.3
Price to Cash Flow	x	53.2	35.3
TTM P/E ratio	x	72.2	26.3
Price / Book Value ratio	x	3.2	5.6
Market Cap	Rs m	302,770	573,803
Dividends per share (Unadj.)	Rs	8.6	8.6

Ratio Analysis for CONTAINER CORPORATION

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY19, from 2.8x 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 241.7x during FY19, from 216.1x 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 improved and stood at 11.4% during FY19, from 10.8% 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 improved and stood at 15.9% during FY19, from 14.5% 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 9.2% during FY19, from 9.3% 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	2.8	2.3
Debtors’ Days	Days	1	1
Interest coverage	x	216.1	241.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.3	9.2
Return on equity	%	10.8	11.4
Return on capital employed	%	14.5	15.9

To see how CONTAINER CORPORATION has performed over the last 5 years, please visit here.

CONTAINER CORPORATION Share Price Performance

Over the last one year, CONTAINER CORPORATION share price has moved down from Rs 1,243.8 to Rs 524.7, registering a loss of Rs 719.2 or around 57.8%.

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

(To know more, check out historical annual results for CONTAINER CORPORATION and quarterly results for CONTAINER CORPORATION)

Read: Latest Annual Report Analysis of CONTAINER CORPORATION