CARBORUNDUM UNIVERSAL 2018-19 Annual Report Analysis

Sun, 31 Mar

CARBORUNDUM UNIVERSAL 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.

CARBORUNDUM UNIVERSAL Income Statement Analysis

• Operating income during the year rose 14.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.3% in FY19 as against 17.0% in FY18.
• Depreciation charges increased by 2.1% and finance costs decreased by 1.5% YoY, respectively.
• Other income grew by 24.5% YoY.
• Net profit for the year grew by 11.1% YoY.
• Net profit margins during the year declined from 8.8% in FY18 to 8.5% in FY19.

CARBORUNDUM UNIVERSAL Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	23,404	26,889	14.9%
Other income	Rs m	229	285	24.5%
Total Revenues	Rs m	23,633	27,174	15.0%
Gross profit	Rs m	3,986	4,371	9.6%
Depreciation	Rs m	1,060	1,083	2.1%
Interest	Rs m	86	85	-1.5%
Profit before tax	Rs m	3,070	3,488	13.6%
Tax	Rs m	1,020	1,212	18.8%
Profit after tax	Rs m	2,049	2,277	11.1%
Gross profit margin	%	17.0	16.3
Effective tax rate	%	33.2	34.7
Net profit margin	%	8.8	8.5

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CARBORUNDUM UNIVERSAL Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 4 billion as compared to Rs 4 billion in FY18, thereby witnessing an decrease of -3.1%.
• Long-term debt down at Rs 51 million as compared to Rs 66 million during FY18, a fall of 23.5%.
• Current assets rose 13% and stood at Rs 13 billion, while fixed assets fell 1% and stood at Rs 9 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 22 billion as against Rs 21 billion during FY18, thereby witnessing a growth of 6%.

CARBORUNDUM UNIVERSAL Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	15,612	17,194	10.1
Current Liabilities	Rs m	4,186	4,054	-3.1
Long-term Debt	Rs m	66	51	-23.5
Total Liabilities	Rs m	20,876	22,219	6.4
Current assets	Rs m	11,552	12,998	12.5
Fixed Assets	Rs m	9,323	9,221	-1.1
Total Assets	Rs m	20,876	22,219	6.4

CARBORUNDUM UNIVERSAL Cash Flow Statement Analysis

• CARBORUNDUM UNIVERSAL's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -799 million, an improvement of 6.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 74 million from the Rs 549 million net cash flows seen during FY18.

CARBORUNDUM UNIVERSAL 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	2,130	2,018	-5.2%
Cash Flow from Investing Activities	Rs m	-748	-799	-
Cash Flow from Financing Activities	Rs m	-832	-1,091	-
Net Cash Flow	Rs m	549	74	-86.6%

Current Valuations for CARBORUNDUM UNIVERSAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.0, an improvement from the EPS of Rs 10.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 406.2, stands at 33.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 20.5 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	123.9	142.2
TTM Earnings per share	Rs	10.8	12.0
Diluted earnings per share	Rs	10.8	12.0
Price to Cash Flow	x	21.2	20.5
TTM P/E ratio	x	31.9	33.6
Price / Book Value ratio	x	4.3	4.0
Market Cap	Rs m	67,424	69,003
Dividends per share (Unadj.)	Rs	2.3	2.8

Ratio Analysis for CARBORUNDUM UNIVERSAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.2x during FY19, from 2.8x 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 42.1x during FY19, from 36.6x 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 13.2% during FY19, from 13.1% 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 20.7% during FY19, from 20.1% 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 10.6% during FY19, from 10.2% 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	2.8	3.2
Debtors’ Days	Days	74	70
Interest coverage	x	36.6	42.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.2	10.6
Return on equity	%	13.1	13.2
Return on capital employed	%	20.1	20.7

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

CARBORUNDUM UNIVERSAL Share Price Performance

Over the last one year, CARBORUNDUM UNIVERSAL share price has moved up from Rs 347.5 to Rs 406.2, registering a gain of Rs 58.7 or around 16.9%.

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 CARBORUNDUM UNIVERSAL and quarterly results for CARBORUNDUM UNIVERSAL)

Read: Latest Annual Report Analysis of CARBORUNDUM UNIVERSAL