GRAPHITE INDIA 2018-19 Annual Report Analysis

Sun, 31 Mar

GRAPHITE 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.

GRAPHITE INDIA Income Statement Analysis

• Operating income during the year rose 142.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 244.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 63.2% in FY19 as against 44.6% in FY18.
• Depreciation charges increased by 21.0% and finance costs increased by 43.8% YoY, respectively.
• Other income grew by 136.8% YoY.
• Net profit for the year grew by 229.3% YoY.
• Net profit margins during the year grew from 31.8% in FY18 to 43.3% in FY19.

GRAPHITE INDIA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	32,408	78,579	142.5%
Other income	Rs m	885	2,097	136.8%
Total Revenues	Rs m	33,293	80,676	142.3%
Gross profit	Rs m	14,442	49,684	244.0%
Depreciation	Rs m	516	625	21.0%
Interest	Rs m	81	116	43.8%
Profit before tax	Rs m	14,730	51,040	246.5%
Tax	Rs m	4,410	17,054	286.7%
Profit after tax	Rs m	10,320	33,986	229.3%
Gross profit margin	%	44.6	63.2
Effective tax rate	%	29.9	33.4
Net profit margin	%	31.8	43.3

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GRAPHITE INDIA Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 14 billion as compared to Rs 10 billion in FY18, thereby witnessing an increase of 51.3%.
• Current assets rose 98% and stood at Rs 56 billion, while fixed assets rose 44% and stood at Rs 13 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 69 billion as against Rs 37 billion during FY18, thereby witnessing a growth of 85%.

GRAPHITE INDIA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	27,318	53,506	95.9
Current Liabilities	Rs m	9,509	14,387	51.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	37,309	69,015	85.0
Current assets	Rs m	28,241	55,985	98.2
Fixed Assets	Rs m	9,067	13,031	43.7
Total Assets	Rs m	37,309	69,015	85.0

GRAPHITE INDIA Cash Flow Statement Analysis

• GRAPHITE INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 23 billion, an improvement of 205.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -13 billion, an improvement of 129.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 4 billion from the Rs 292 million net cash flows seen during FY18.

GRAPHITE 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	7,596	23,225	205.8%
Cash Flow from Investing Activities	Rs m	-5,541	-12,712	-
Cash Flow from Financing Activities	Rs m	-1,789	-6,759	-
Net Cash Flow	Rs m	292	3,599	1,133.2%

Current Valuations for GRAPHITE INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 173.9, an improvement from the EPS of Rs 52.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 446.9, stands at 2.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 4.3 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	165.9	402.2
TTM Earnings per share	Rs	52.8	173.9
Diluted earnings per share	Rs	52.8	174.0
Price to Cash Flow	x	13.1	4.3
TTM P/E ratio	x	15.5	2.8
Price / Book Value ratio	x	3.6	2.8
Market Cap	Rs m	98,762	148,622
Dividends per share (Unadj.)	Rs	17.0	55.0

Ratio Analysis for GRAPHITE INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.9x during FY19, from 3.0x 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 440.2x during FY19, from 183.3x 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 improved and stood at 63.5% during FY19, from 37.8% 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 95.6% during FY19, from 54.2% 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 49.4% during FY19, from 27.9% 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	3.0	3.9
Debtors’ Days	Days	9	4
Interest coverage	x	183.3	440.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	27.9	49.4
Return on equity	%	37.8	63.5
Return on capital employed	%	54.2	95.6

To see how GRAPHITE INDIA has performed over the last 5 years, please visit here.

GRAPHITE INDIA Share Price Performance

Over the last one year, GRAPHITE INDIA share price has moved down from Rs 726.5 to Rs 446.9, registering a loss of Rs 279.6 or around 38.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

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

(To know more, check out historical annual results for GRAPHITE INDIA and quarterly results for GRAPHITE INDIA)

Read: Latest Annual Report Analysis of GRAPHITE INDIA