EICHER MOTOR 2018-19 Annual Report Analysis

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EICHER MOTOR 2018-19 Annual Report Analysis
Mon, 16 Sep

EICHER MOTOR 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.

EICHER MOTOR Income Statement Analysis

  • Operating income during the year rose 8.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 3.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 29.9% in FY19 as against 31.5% in FY18.
  • Depreciation charges increased by 34.5% and finance costs increased by 37.3% YoY, respectively.
  • Other income grew by 58.3% YoY.
  • Net profit for the year grew by 1.9% YoY.
  • Net profit margins during the year declined from 23.7% in FY18 to 21.9% in FY19.

EICHER MOTOR Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 89,209 97,174 8.9%
Other income Rs m 2,801 4,434 58.3%
Total Revenues Rs m 92,010 101,608 10.4%
Gross profit Rs m 28,076 29,031 3.4%
Depreciation Rs m 2,233 3,003 34.5%
Interest Rs m 53 73 37.3%
Profit before tax Rs m 28,591 30,389 6.3%
Tax Rs m 9,359 10,770 15.1%
Profit after tax Rs m 21,797 22,203 1.9%
Gross profit margin % 31.5 29.9
Effective tax rate % 32.7 35.4
Net profit margin % 23.7 21.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



EICHER MOTOR Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 21 billion as compared to Rs 23 billion in FY18, thereby witnessing an decrease of -7.4%.
  • Current assets rose 74% and stood at Rs 44 billion, while fixed assets rose 19% and stood at Rs 43 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 114 billion as against Rs 95 billion during FY18, thereby witnessing a growth of 20%.

EICHER MOTOR Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 70,301 89,187 26.9
 
Current Liabilities Rs m 22,652 20,981 -7.4
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 95,222 113,868 19.6
 
Current assets Rs m 25,350 44,103 74.0
Fixed Assets Rs m 35,992 42,682 18.6
Total Assets Rs m 95,222 113,868 19.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



EICHER MOTOR Cash Flow Statement Analysis

  • EICHER MOTOR's cash flow from operating activities (CFO) during FY19 stood at Rs 16 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -7 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 6 billion from the Rs 752 million net cash flows seen during FY18.

EICHER MOTOR 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 24,823 15,730 -36.6%
Cash Flow from Investing Activities Rs m -21,450 -6,574 -
Cash Flow from Financing Activities Rs m -2,620 -2,923 -
Net Cash Flow Rs m 752 6,233 728.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for EICHER MOTOR

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 813.9, an improvement from the EPS of Rs 799.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 16,588.0, stands at 24.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.8 times, while the price to sales ratio stands at 7.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 19.9 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 3,272.5 3,562.1
TTM Earnings per share Rs 799.6 813.9
Diluted earnings per share Rs 804.3 819.3
Price to Cash Flow x 21.1 19.9
TTM P/E ratio x 24.2 24.1
Price / Book Value ratio x 11.4 7.8
Market Cap Rs m 452,188 449,533
Dividends per share (Unadj.) Rs 110.0 125.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for EICHER MOTOR

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.1x 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 deteriorated and stood at 415.6x during FY19, from 536.4x 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 24.9% during FY19, from 31.0% 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 declined and down at 37.1% during FY19, from 44.4% 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 19.6% during FY19, from 22.9% 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 1.1 2.1
Debtors’ Days Days 3 3
Interest coverage x 536.4 415.6
Debt to equity ratio x 0.0 0.0
Return on assets % 22.9 19.6
Return on equity % 31.0 24.9
Return on capital employed % 44.4 37.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how EICHER MOTOR has performed over the last 5 years, please visit here.

EICHER MOTOR Share Price Performance

Over the last one year, EICHER MOTOR share price has moved down from Rs 29,366.3 to Rs 16,588.0, registering a loss of Rs 12,778.4 or around 43.5%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 16,439.4 (down 0.6%). Over the last one year it has moved down from 24,246.9 to 16,439.4, a loss of 7,807 points (down 32.2%).

Overall, the S&P BSE SENSEX is down 2.4% over the year.

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

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Related Views on News

EICHER MOTOR Announces Quarterly Results (2QFY20); Net Profit Up 19.7% (Quarterly Result Update)

Nov 12, 2019 | Updated on Nov 12, 2019

For the quarter ended September 2019, EICHER MOTOR has posted a net profit of Rs 6 bn (up 19.7% YoY). Sales on the other hand came in at Rs 22 bn (down 9.0% YoY). Read on for a complete analysis of EICHER MOTOR's quarterly results.

EICHER MOTOR Announces Quarterly Results (1QFY20); Net Profit Down 15.0% (Quarterly Result Update)

Aug 1, 2019 | Updated on Aug 1, 2019

For the quarter ended June 2019, EICHER MOTOR has posted a net profit of Rs 4 bn (down 15.0% YoY). Sales on the other hand came in at Rs 24 bn (down 6.5% YoY). Read on for a complete analysis of EICHER MOTOR's quarterly results.

EICHER MOTOR 2017-18 Annual Report Analysis (Annual Result Update)

Aug 14, 2018 | Updated on Aug 14, 2018

Here's an analysis of the annual report of EICHER MOTOR for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of EICHER MOTOR. Also includes updates on the valuation of EICHER MOTOR.

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