COLGATE 2018-19 Annual Report Analysis

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COLGATE 2018-19 Annual Report Analysis
Mon, 30 Sep

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 6.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 11.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.7% in FY19 as against 26.6% in FY18.
  • Depreciation charges increased by 1.7%
  • 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 15.9% in FY18 to 17.2% in FY19.

COLGATE Income Statement 2018-19

No. of Mths Year Ending12 Mar-18*12 Mar-19*% Change
Net SalesRs m41,88044,6246.6%
Other incomeRs m3753770.5%
Total RevenuesRs m42,25445,0016.5%
Gross profitRs m11,13712,36111.0%
DepreciationRs m1,5651,5921.7%
InterestRs m0250.0%
Profit before taxRs m9,94711,12111.8%
TaxRs m3,0973,67018.5%
Profit after taxRs m6,7347,75615.2%
Gross profit margin%26.627.7
Effective tax rate%31.133.0
Net profit margin%15.917.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Discover: India's #1 Defence Stock

COLGATE Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 11 billion as compared to Rs 10 billion in FY18, thereby witnessing an increase of 7.0%.
  • Long-term debt stood at Rs 777 million as compared to Rs 0 million during FY18, a fall of 0.0%.
  • Current assets fell 5% and stood at Rs 10 billion, while fixed assets rose 7% and stood at Rs 14 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 26 billion as against Rs 26 billion during FY18, thereby witnessing a growth of 2%.

COLGATE Balance Sheet as on March 2019

No. of Mths Year Ending12 Mar-18*12 Mar-19*% Change
NetworthRs m15,24614,468-5.1
 
Current LiabilitiesRs m9,82810,5117.0
Long-term DebtRs m07770.0
Total LiabilitiesRs m25,63926,2652.4
 
Current assetsRs m10,60710,102-4.8
Fixed AssetsRs m 13,04513,8966.5
Total AssetsRs m25,63926,2652.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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

ParticularsNo. of months1212% Change
Year EndingMar-18Mar-19
Cash Flow from Operating ActivitiesRs m6,9399,83041.7%
Cash Flow from Investing ActivitiesRs m-2,073-957-
Cash Flow from Financing ActivitiesRs m-3,798-8,147-
Net Cash FlowRs m1,068726-32.0%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 1,498.0, stands at 54.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 22.4 times, while the price to sales ratio stands at 7.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 43.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-18*12 Mar-19*
Sales per share (Unadj.)Rs154.0164.1
TTM Earnings per shareRs24.828.5
Diluted earnings per shareRs24.828.5
Price to Cash Flow x49.143.6
TTM P/E ratiox54.054.0
Price / Book Value ratiox19.122.4
Market CapRs m407,441407,432
Dividends per share (Unadj.)Rs24.023.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 445.8x 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 53.6% during FY19, from 44.2% 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 75.1% during FY19, from 64.5% 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 improved and stood at 29.6% during FY19, from 26.3% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-18*12 Mar-19*
Current ratiox1.11.0
Debtors’ DaysDays1817
Interest coveragex0.0445.8
Debt to equity ratiox0.00.1
Return on assets%26.329.6
Return on equity%44.253.6
Return on capital employed%64.575.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 1,085.0 to Rs 1,498.0, registering a gain of Rs 413.0 or around 38.1%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,711.6 (down 0.2%). Over the last one year it has moved up from 11,502.8 to 11,711.6, a gain of 209 points (up 1.8%).

Overall, the S&P BSE SENSEX is up 6.0% over the year.

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

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Related Views on News

COLGATE Announces Quarterly Results (2QFY21); Net Profit Up 12.3% (Quarterly Result Update)

Oct 22, 2020 | Updated on Oct 22, 2020

For the quarter ended September 2020, COLGATE has posted a net profit of Rs 3 bn (up 12.3% YoY). Sales on the other hand came in at Rs 13 bn (up 6.0% YoY). Read on for a complete analysis of COLGATE's quarterly results.

COLGATE Announces Quarterly Results (1QFY21); Net Profit Up 17.2% (Quarterly Result Update)

Aug 26, 2020 | Updated on Aug 26, 2020

For the quarter ended June 2020, COLGATE has posted a net profit of Rs 2 bn (up 17.2% YoY). Sales on the other hand came in at Rs 10 bn (down 4.7% YoY). Read on for a complete analysis of COLGATE's quarterly results.

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