DEEPAK NITRITE 2018-19 Annual Report Analysis

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DEEPAK NITRITE 2018-19 Annual Report Analysis
Thu, 6 Jun

DEEPAK NITRITE 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 NITRITE Income Statement Analysis

  • Operating income during the year rose 63.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 110.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.3% in FY19 as against 11.9% in FY18.
  • Depreciation charges increased by 47.9% and finance costs increased by 84.4% YoY, respectively.
  • Other income grew by 22.9% YoY.
  • Net profit for the year grew by 119.8% YoY.
  • Net profit margins during the year grew from 4.7% in FY18 to 6.4% in FY19.

DEEPAK NITRITE Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 16,515 26,999 63.5%
Other income Rs m 123 151 22.9%
Total Revenues Rs m 16,638 27,150 63.2%
Gross profit Rs m 1,963 4,139 110.9%
Depreciation Rs m 526 778 47.9%
Interest Rs m 452 833 84.4%
Profit before tax Rs m 1,109 2,680 141.8%
Tax Rs m 318 943 196.3%
Profit after tax Rs m 790 1,737 119.8%
Gross profit margin % 11.9 15.3
Effective tax rate % 28.7 35.2
Net profit margin % 4.7 6.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



DEEPAK NITRITE Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 9 billion as compared to Rs 10 billion in FY18, thereby witnessing an decrease of -15.7%.
  • Long-term debt stood at Rs 9 billion as compared to Rs 6 billion during FY18, a growth of 58.0%.
  • Current assets rose 17% and stood at Rs 12 billion, while fixed assets rose 13% and stood at Rs 17 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 29 billion as against Rs 26 billion during FY18, thereby witnessing a growth of 13%.

DEEPAK NITRITE Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 9,221 10,716 16.2
 
Current Liabilities Rs m 10,476 8,836 -15.7
Long-term Debt Rs m 5,505 8,699 58.0
Total Liabilities Rs m 25,906 29,278 13.0
 
Current assets Rs m 9,929 11,617 17.0
Fixed Assets Rs m 15,421 17,497 13.5
Total Assets Rs m 25,906 29,278 13.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



DEEPAK NITRITE Cash Flow Statement Analysis

  • DEEPAK NITRITE's cash flow from operating activities (CFO) during FY19 stood at Rs 637 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 924 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -65 million from the Rs 36 million net cash flows seen during FY18.

DEEPAK NITRITE 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 1,830 637 -65.2%
Cash Flow from Investing Activities Rs m -5,247 -1,626 -
Cash Flow from Financing Activities Rs m 3,453 924 -73.2%
Net Cash Flow Rs m 36 -65 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for DEEPAK NITRITE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.7, an improvement from the EPS of Rs 5.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 327.5, stands at 32.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 17.8 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 121.1 198.0
TTM Earnings per share Rs 5.8 12.7
Diluted earnings per share Rs 5.8 12.7
Price to Cash Flow x 33.9 17.8
TTM P/E ratio x 32.4 32.4
Price / Book Value ratio x 3.2 3.2
Market Cap Rs m 44,668 44,669
Dividends per share (Unadj.) Rs 1.3 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for DEEPAK NITRITE

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x during FY19, from 0.9x 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 4.2x during FY19, from 3.5x 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 16.2% during FY19, from 8.6% 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 18.1% during FY19, from 10.6% 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 8.8% 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 0.9 1.3
Debtors’ Days Days 91 78
Interest coverage x 3.5 4.2
Debt to equity ratio x 0.6 0.8
Return on assets % 4.8 8.8
Return on equity % 8.6 16.2
Return on capital employed % 10.6 18.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

DEEPAK NITRITE Share Price Performance

Over the last one year, DEEPAK NITRITE share price has moved up from Rs 226.1 to Rs 327.5, registering a gain of Rs 101.5 or around 44.9%.

Overall, the S&P BSE SENSEX is up 12.9% over the year.

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

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Aug 5, 2019 | Updated on Aug 5, 2019

For the quarter ended June 2019, DEEPAK NITRITE has posted a net profit of Rs 1 bn (up 392.5% YoY). Sales on the other hand came in at Rs 6 bn (up 30.7% YoY). Read on for a complete analysis of DEEPAK NITRITE's quarterly results.

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