CARBORUNDUM UNIVERSAL 2018-19 Annual Report Analysis

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CARBORUNDUM UNIVERSAL 2018-19 Annual Report Analysis
Mon, 30 Sep

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 13.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 9.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.3% in FY19 as against 16.8% in FY18.
  • Depreciation charges increased by 2.1% and finance costs decreased by 1.5% YoY, respectively.
  • Other income grew by 19.1% YoY.
  • Net profit for the year grew by 12.8% YoY.
  • Net profit margins during the year declined from 9.2% in FY18 to 9.1% in FY19.

CARBORUNDUM UNIVERSAL Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 23,678 26,889 13.6%
Other income Rs m 229 273 19.1%
Total Revenues Rs m 23,907 27,162 13.6%
Gross profit Rs m 3,987 4,383 9.9%
Depreciation Rs m 1,060 1,083 2.1%
Interest Rs m 86 85 -1.5%
Profit before tax Rs m 3,070 3,489 13.6%
Tax Rs m 1,020 1,212 18.8%
Profit after tax Rs m 2,196 2,476 12.8%
Gross profit margin % 16.8 16.3
Effective tax rate % 33.2 34.7
Net profit margin % 9.2 9.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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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 23.4%.
  • Current assets rose 13% and stood at Rs 13 billion, while fixed assets fell 3% and stood at Rs 7 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 15,644 17,241 10.2
 
Current Liabilities Rs m 4,186 4,054 -3.1
Long-term Debt Rs m 66 51 -23.4
Total Liabilities Rs m 20,985 22,320 6.4
 
Current assets Rs m 11,552 12,998 12.5
Fixed Assets Rs m 7,659 7,414 -3.2
Total Assets Rs m 20,985 22,320 6.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 -1,092 -
Net Cash Flow Rs m 549 74 -86.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for CARBORUNDUM UNIVERSAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.1, an improvement from the EPS of Rs 11.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 291.6, stands at 25.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 2.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.3 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 125.3 142.2
TTM Earnings per share Rs 11.6 13.1
Diluted earnings per share Rs 11.7 13.2
Price to Cash Flow x 17.7 16.3
TTM P/E ratio x 25.7 25.6
Price / Book Value ratio x 4.3 4.0
Market Cap Rs m 55,091 54,864
Dividends per share (Unadj.) Rs 2.3 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 36.7x 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 14.4% during FY19, from 14.0% 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 21.8% during FY19, from 21.0% 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 11.5% during FY19, from 10.9% 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 2.8 3.2
Debtors’ Days Days 73 70
Interest coverage x 36.7 42.1
Debt to equity ratio x 0.0 0.0
Return on assets % 10.9 11.5
Return on equity % 14.0 14.4
Return on capital employed % 21.0 21.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 down from Rs 383.2 to Rs 291.6, registering a loss of Rs 91.7 or around 23.9%.

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

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

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1 Responses to "CARBORUNDUM UNIVERSAL 2018-19 Annual Report Analysis"

Venkata Shivakumar R

Mar 29, 2020

Please correct this statement "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%."

The statement would be correct since the numbers have been rounded off I guess. At first read, it appears wrong.

Like (2)
  
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