CENTURY ENKA 2018-19 Annual Report Analysis

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CENTURY ENKA 2018-19 Annual Report Analysis
Thu, 20 Jun

CENTURY ENKA 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.

CENTURY ENKA Income Statement Analysis

  • Operating income during the year rose 26.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 34.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.4% in FY19 as against 7.9% in FY18.
  • Depreciation charges increased by 7.4% and finance costs increased by 1.8% YoY, respectively.
  • Other income grew by 21.9% YoY.
  • Net profit for the year grew by 9.3% YoY.
  • Net profit margins during the year declined from 4.9% in FY18 to 4.2% in FY19.

CENTURY ENKA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 14,165 17,914 26.5%
Other income Rs m 178 216 21.9%
Total Revenues Rs m 14,342 18,130 26.4%
Gross profit Rs m 1,117 1,505 34.7%
Depreciation Rs m 419 450 7.4%
Interest Rs m 34 35 1.8%
Profit before tax Rs m 841 1,236 47.0%
Tax Rs m 389 425 9.2%
Profit after tax Rs m 701 766 9.3%
Gross profit margin % 7.9 8.4
Effective tax rate % 46.3 34.4
Net profit margin % 4.9 4.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CENTURY ENKA Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 1 billion as compared to Rs 1 billion in FY18, thereby witnessing an increase of 22.8%.
  • Long-term debt down at Rs 210 million as compared to Rs 306 million during FY18, a fall of 31.3%.
  • Current assets rose 15% and stood at Rs 6 billion, while fixed assets fell 5% and stood at Rs 6 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 12 billion as against Rs 12 billion during FY18, thereby witnessing a growth of 6%.

CENTURY ENKA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 9,009 9,549 6.0
 
Current Liabilities Rs m 1,050 1,289 22.8
Long-term Debt Rs m 306 210 -31.3
Total Liabilities Rs m 11,637 12,312 5.8
 
Current assets Rs m 5,572 6,423 15.3
Fixed Assets Rs m 5,786 5,501 -4.9
Total Assets Rs m 11,637 12,312 5.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CENTURY ENKA Cash Flow Statement Analysis

  • CENTURY ENKA's cash flow from operating activities (CFO) during FY19 stood at Rs 1 billion, an improvement of 118.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -1 billion, an improvement of 1,232.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -306 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -183 million from the Rs 204 million net cash flows seen during FY18.

CENTURY ENKA 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 561 1,225 118.2%
Cash Flow from Investing Activities Rs m -83 -1,102 -
Cash Flow from Financing Activities Rs m -275 -306 -
Net Cash Flow Rs m 204 -183 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for CENTURY ENKA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.0, an improvement from the EPS of Rs 32.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 217.7, stands at 6.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.9 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 648.3 819.9
TTM Earnings per share Rs 32.1 35.0
Diluted earnings per share Rs 32.1 35.0
Price to Cash Flow x 4.2 3.9
TTM P/E ratio x 6.2 6.2
Price / Book Value ratio x 0.9 0.7
Market Cap Rs m 4,756 4,756
Dividends per share (Unadj.) Rs 7.0 7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for CENTURY ENKA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 5.0x during FY19, from 5.3x 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 36.7x during FY19, from 25.7x 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 8.0% during FY19, from 7.8% 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 12.6% during FY19, from 12.1% 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 improved and stood at 6.5% during FY19, from 6.3% 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 5.3 5.0
Debtors’ Days Days 53 42
Interest coverage x 25.7 36.7
Debt to equity ratio x 0.0 0.0
Return on assets % 6.3 6.5
Return on equity % 7.8 8.0
Return on capital employed % 12.1 12.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how CENTURY ENKA has performed over the last 5 years, please visit here.

CENTURY ENKA Share Price Performance

Over the last one year, CENTURY ENKA share price has moved up from Rs 287.9 to Rs 217.7, registering a loss of Rs 70.3 or around 24.4%.

Overall, the S&P BSE SENSEX is up 11.6% over the year.

(To know more, check out historical annual results for CENTURY ENKA and quarterly results for CENTURY ENKA)

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CENTURY ENKA Announces Quarterly Results (3QFY20); Net Profit Down 55.0% (Quarterly Result Update)

Feb 6, 2020 | Updated on Feb 6, 2020

For the quarter ended December 2019, CENTURY ENKA has posted a net profit of Rs 92 m (down 55.0% YoY). Sales on the other hand came in at Rs 4 bn (down 21.7% YoY). Read on for a complete analysis of CENTURY ENKA's quarterly results.

CENTURY ENKA Announces Quarterly Results (1QFY20); Net Profit Down 17.7% (Quarterly Result Update)

Jul 31, 2019 | Updated on Jul 31, 2019

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CENTURY ENKA 2017-18 Annual Report Analysis (Annual Result Update)

Dec 18, 2018 | Updated on Dec 18, 2018

Here's an analysis of the annual report of CENTURY ENKA for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of CENTURY ENKA. Also includes updates on the valuation of CENTURY ENKA.

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