CONTAINER CORPORATION 2019-20 Annual Report Analysis

Tue, 31 Mar

CONTAINER CORPORATION has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

CONTAINER CORPORATION Income Statement Analysis

• Operating income during the year fell 6.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 53.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.9% in FY20 as against 25.7% in FY19.
• Depreciation charges increased by 20.4% and finance costs increased by 578.0% YoY, respectively.
• Other income declined by 20.1% YoY.
• Net profit for the year declined by 68.8% YoY.
• Net profit margins during the year declined from 16.9% in FY19 to 5.6% in FY20.

CONTAINER CORPORATION Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	69,561	65,394	-6.0%
Other income	Rs m	3,170	2,534	-20.1%
Total Revenues	Rs m	72,731	67,929	-6.6%
Gross profit	Rs m	17,910	8,424	-53.0%
Depreciation	Rs m	4,523	5,444	20.4%
Interest	Rs m	69	464	578.0%
Profit before tax	Rs m	16,489	5,050	-69.4%
Tax	Rs m	4,744	1,381	-70.9%
Profit after tax	Rs m	11,745	3,669	-68.8%
Gross profit margin	%	25.7	12.9
Effective tax rate	%	28.8	27.3
Net profit margin	%	16.9	5.6

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CONTAINER CORPORATION Balance Sheet Analysis

• The company's current liabilities during FY20 down at Rs 12 billion as compared to Rs 20 billion in FY19, thereby witnessing an decrease of -42.4%.
• Long-term debt down at Rs 636 million as compared to Rs 700 million during FY19, a fall of 9.1%.
• Current assets fell 38% and stood at Rs 29 billion, while fixed assets rose 10% and stood at Rs 88 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 118 billion as against Rs 128 billion during FY19, thereby witnessing a fall of 8%.

CONTAINER CORPORATION Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	103,274	100,461	-2.7
Current Liabilities	Rs m	20,436	11,770	-42.4
Long-term Debt	Rs m	700	636	-9.1
Total Liabilities	Rs m	127,975	117,620	-8.1
Current assets	Rs m	47,469	29,279	-38.3
Fixed Assets	Rs m	80,506	88,340	9.7
Total Assets	Rs m	127,975	117,620	-8.1

CONTAINER CORPORATION Cash Flow Statement Analysis

• CONTAINER CORPORATION's cash flow from operating activities (CFO) during FY20 stood at Rs 43 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -29 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -15 billion on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs -594 million from the Rs -793 million net cash flows seen during FY19.

CONTAINER CORPORATION Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-19	Mar-20
Cash Flow from Operating Activities	Rs m	-19,414	42,858	-
Cash Flow from Investing Activities	Rs m	13,815	-28,750	-
Cash Flow from Financing Activities	Rs m	4,807	-14,702	-
Net Cash Flow	Rs m	-793	-594	-

Current Valuations for CONTAINER CORPORATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.0, an decline from the EPS of Rs 19.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 331.5, stands at 55.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 31.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Sales per share (Unadj.)	Rs	114.2	107.3
TTM Earnings per share	Rs	19.3	6.0
Diluted earnings per share	Rs	19.3	6.0
Price to Cash Flow	x	19.7	31.0
TTM P/E ratio	x	26.3	55.0
Price / Book Value ratio	x	5.6	2.8
Market Cap	Rs m	573,803	282,804
Dividends per share (Unadj.)	Rs	8.6	3.6

Ratio Analysis for CONTAINER CORPORATION

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY20, from 2.3x during FY19. 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 deteriorated and stood at 11.9x during FY20, from 241.7x during FY19. 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 3.7% during FY20, from 11.4% during FY20. 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 5.5% during FY20, from 15.9% during FY19. 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 3.5% during FY20, from 9.2% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Current ratio	x	2.3	2.5
Debtors’ Days	Days	1	1
Interest coverage	x	241.7	11.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.2	3.5
Return on equity	%	11.4	3.7
Return on capital employed	%	15.9	5.5

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 524.7 to Rs 331.5, registering a loss of Rs 193.2 or around 36.8%.

Overall, the S&P BSE SENSEX is down 24.2% 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