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COLGATE 2018-19 Annual Report Analysis
Sun, 31 Mar

COLGATE 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.

COLGATE Income Statement Analysis

  • Operating income during the year rose 10.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 14.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.4% in FY19 as against 27.2% in FY18.
  • Depreciation charges increased by 1.7% increased by 0.0% YoY, respectively.
  • Other income grew by 0.5% YoY.
  • Net profit for the year grew by 15.2% YoY.
  • Net profit margins during the year grew from 16.6% in FY18 to 17.4% in FY19.

COLGATE Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 40,475 44,624 10.3%
Other income Rs m 375 377 0.5%
Total Revenues Rs m 40,850 45,001 10.2%
Gross profit Rs m 11,021 12,666 14.9%
Depreciation Rs m 1,565 1,592 1.7%
Interest Rs m 0 25 0.0%
Profit before tax Rs m 9,830 11,426 16.2%
Tax Rs m 3,097 3,670 18.5%
Profit after tax Rs m 6,734 7,756 15.2%
Gross profit margin % 27.2 28.4
Effective tax rate % 31.5 32.1
Net profit margin % 16.6 17.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

COLGATE Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 18 billion as compared to Rs 16 billion in FY18, thereby witnessing an increase of 18.1%.
  • Long-term debt stood at Rs 777 million as compared to Rs 0 million during FY18, a fall of 0.0%.
  • Current assets rose 10% and stood at Rs 18 billion, while fixed assets rose 9% and stood at Rs 31 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 49 billion as against Rs 45 billion during FY18, thereby witnessing a growth of 9%.

COLGATE Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 15,187 14,429 -5.0
 
Current Liabilities Rs m 15,568 18,386 18.1
Long-term Debt Rs m 0 777 0.0
Total Liabilities Rs m 44,898 49,008 9.2
 
Current assets Rs m 16,347 17,977 10.0
Fixed Assets Rs m 28,551 31,031 8.7
Total Assets Rs m 44,898 49,008 9.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



COLGATE Cash Flow Statement Analysis

  • COLGATE's cash flow from operating activities (CFO) during FY19 stood at Rs 10 billion, an improvement of 41.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -957 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -8 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 726 million from the Rs 1 billion net cash flows seen during FY18.

COLGATE 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 6,939 9,830 41.7%
Cash Flow from Investing Activities Rs m -2,073 -957 -
Cash Flow from Financing Activities Rs m -3,798 -8,147 -
Net Cash Flow Rs m 1,068 726 -32.0%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for COLGATE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.5, an improvement from the EPS of Rs 24.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,258.5, stands at 44.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 23.7 times, while the price to sales ratio stands at 7.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 34.7 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 148.8 164.1
TTM Earnings per share Rs 24.8 28.5
Diluted earnings per share Rs 24.8 28.5
Price to Cash Flow x 34.7 34.7
TTM P/E ratio x 42.7 44.1
Price / Book Value ratio x 19.2 22.5
Market Cap Rs m 291,773 324,384
Dividends per share (Unadj.) Rs 24.0 23.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for COLGATE

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY19, from 1.1x 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 458.9x during FY19, from 0.0x 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 53.7% during FY19, from 44.3% 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 75.3% during FY19, from 64.7% 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 15.9% during FY19, from 15.0% 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 1.1 1.0
Debtors’ Days Days 181 172
Interest coverage x 0.0 458.9
Debt to equity ratio x 0.0 0.1
Return on assets % 15.0 15.9
Return on equity % 44.3 53.7
Return on capital employed % 64.7 75.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

COLGATE Share Price Performance

Over the last one year, COLGATE share price has moved up from Rs 1,057.7 to Rs 1,258.5, registering a gain of Rs 200.8 or around 19.0%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,741.5 (down 0.1%). Over the last one year it has moved up from 10,290.1 to 11,741.5, a gain of 1,451 points (up 14.1%).

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

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

Annual Report FAQs

What is the current share price of COLGATE?

COLGATE currently trades at Rs 2,710.9 per share. You can check out the latest share price performance of COLGATE here...

What was the revenue of COLGATE in FY19? How does it compare to earlier years?

The revenues of COLGATE stood at Rs 45,001 m in FY19, which was up 10.2% compared to Rs 40,850 m reported in FY18.

COLGATE's revenue has grown from Rs 37,587 m in FY15 to Rs 45,001 m in FY19.

Over the past 5 years, the revenue of COLGATE has grown at a CAGR of 4.6%.

What was the net profit of COLGATE in FY19? How does it compare to earlier years?

The net profit of COLGATE stood at Rs 7,756 m in FY19, which was up 15.2% compared to Rs 6,734 m reported in FY18.

This compares to a net profit of Rs 5,774 m in FY17 and a net profit of Rs 5,812 m in FY16.

Over the past 5 years, COLGATE net profit has grown at a CAGR of 8.5%.

What does the cash flow statement of COLGATE reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of COLGATE reveals:

  • Cash flow from operations increased in FY19 and stood at Rs 9,830 m as compared to Rs 6,939 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs -957 m as compared to Rs -2,073 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -8,147 m as compared to Rs -3,798 m in FY18.

Here's the cash flow statement of COLGATE for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations6,3826,8876,8806,9399,830
From Investments-2,716-2,366-3,421-2,073-957
From Financial Activity-3,848-3,914-3,406-3,798-8,147
Net Cashflow-183607531,068726

What does the Key Ratio analysis of COLGATE reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of COLGATE reveals:

  • Operating profit margins witnessed a fall and down at 28.4% in FY19 as against 27.2% in FY18.
  • Net profit margins grew from 16.6% in FY18 to 17.4% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.1 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of COLGATE for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)22.126.827.427.228.4
Net Profit Margin (%)15.017.216.816.617.4
Debt to Equity Ratio (x)0.00.00.00.00.1

Read: Latest Annual Report Analysis of COLGATE

 

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