DEEPAK FERTILISERS 2018-19 Annual Report Analysis

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DEEPAK FERTILISERS 2018-19 Annual Report Analysis
Fri, 18 Oct

DEEPAK FERTILISERS 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.

DEEPAK FERTILISERS Income Statement Analysis

  • Operating income during the year rose 12.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 15.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.8% in FY19 as against 9.1% in FY18.
  • Depreciation charges increased by 5.0% and finance costs increased by 32.4% YoY, respectively.
  • Other income grew by 125.4% YoY.
  • Net profit for the year declined by 55.2% YoY.
  • Net profit margins during the year declined from 2.7% in FY18 to 1.1% in FY19.

DEEPAK FERTILISERS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 59,949 67,421 12.5%
Other income Rs m 241 543 125.4%
Total Revenues Rs m 60,190 67,964 12.9%
Gross profit Rs m 5,452 4,593 -15.7%
Depreciation Rs m 1,632 1,715 5.0%
Interest Rs m 1,732 2,293 32.4%
Profit before tax Rs m 2,329 1,128 -51.5%
Tax Rs m 664 363 -45.3%
Profit after tax Rs m 1,641 735 -55.2%
Gross profit margin % 9.1 6.8
Effective tax rate % 28.5 32.2
Net profit margin % 2.7 1.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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DEEPAK FERTILISERS Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 32 billion as compared to Rs 42 billion in FY18, thereby witnessing an decrease of -25.3%.
  • Long-term debt stood at Rs 18 billion as compared to Rs 6 billion during FY18, a growth of 183.1%.
  • Current assets fell 17% and stood at Rs 29 billion, while fixed assets rose 26% and stood at Rs 36 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 71 billion as against Rs 70 billion during FY18, thereby witnessing a growth of 2%.

DEEPAK FERTILISERS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 20,865 21,416 2.6
 
Current Liabilities Rs m 42,311 31,588 -25.3
Long-term Debt Rs m 6,255 17,709 183.1
Total Liabilities Rs m 69,915 71,176 1.8
 
Current assets Rs m 35,276 29,350 -16.8
Fixed Assets Rs m 28,520 35,792 25.5
Total Assets Rs m 69,915 71,176 1.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



DEEPAK FERTILISERS Cash Flow Statement Analysis

  • DEEPAK FERTILISERS's cash flow from operating activities (CFO) during FY19 stood at Rs 13 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -6 billion 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 -31 million from the Rs -10 million net cash flows seen during FY18.

DEEPAK FERTILISERS 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 -1,315 13,100 -
Cash Flow from Investing Activities Rs m -11,387 -5,757 -
Cash Flow from Financing Activities Rs m 12,692 -7,374 -
Net Cash Flow Rs m -10 -31 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for DEEPAK FERTILISERS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.3, an decline from the EPS of Rs 18.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 92.8, stands at 16.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.3 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 679.7 764.4
TTM Earnings per share Rs 18.6 8.3
Diluted earnings per share Rs 18.6 8.3
Price to Cash Flow x 2.5 3.3
TTM P/E ratio x 16.3 16.3
Price / Book Value ratio x 1.5 1.0
Market Cap Rs m 8,185 8,185
Dividends per share (Unadj.) Rs 6.0 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for DEEPAK FERTILISERS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.9x during FY19, from 0.8x 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 deteriorated and stood at 1.5x during FY19, from 2.3x 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 declined and down at 3.4% during FY19, from 7.9% 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 declined and down at 8.7% during FY19, from 14.9% 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 declined and down at 4.3% during FY19, from 4.8% 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 0.8 0.9
Debtors’ Days Days 120 76
Interest coverage x 2.3 1.5
Debt to equity ratio x 0.3 0.8
Return on assets % 4.8 4.3
Return on equity % 7.9 3.4
Return on capital employed % 14.9 8.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

DEEPAK FERTILISERS Share Price Performance

Over the last one year, DEEPAK FERTILISERS share price has moved down from Rs 219.0 to Rs 92.8, registering a loss of Rs 126.2 or around 57.6%.

Overall, the S&P BSE SENSEX is up 12.8% over the year.

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

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1 Responses to "DEEPAK FERTILISERS 2018-19 Annual Report Analysis"

j alexander

Jul 9, 2020

very good

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Related Views on News

DEEPAK FERTILISERS Announces Quarterly Results (1QFY20); Net Profit Down 70.8% (Quarterly Result Update)

Aug 21, 2019 | Updated on Aug 21, 2019

For the quarter ended June 2019, DEEPAK FERTILISERS has posted a net profit of Rs 109 m (down 70.8% YoY). Sales on the other hand came in at Rs 11 bn (down 49.6% YoY). Read on for a complete analysis of DEEPAK FERTILISERS's quarterly results.

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