EIH 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

EIH 2018-19 Annual Report Analysis
Wed, 24 Jul

EIH 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.

EIH Income Statement Analysis

  • Operating income during the year rose 13.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 9.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.1% in FY19 as against 18.7% in FY18.
  • Depreciation charges increased by 13.0% and finance costs increased by 118.3% YoY, respectively.
  • Other income declined by 35.1% YoY.
  • Net profit for the year declined by 23.9% YoY.
  • Net profit margins during the year declined from 11.5% in FY18 to 7.9% in FY19.

EIH Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 15,984 18,108 13.3%
Other income Rs m 1,060 688 -35.1%
Total Revenues Rs m 17,044 18,796 10.3%
Gross profit Rs m 2,992 3,277 9.5%
Depreciation Rs m 1,173 1,326 13.0%
Interest Rs m 231 504 118.3%
Profit before tax Rs m 2,647 2,135 -19.3%
Tax Rs m 855 820 -4.2%
Profit after tax Rs m 1,958 1,490 -23.9%
Gross profit margin % 18.7 18.1
Effective tax rate % 32.3 38.4
Net profit margin % 11.5 7.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



EIH Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 7 billion as compared to Rs 6 billion in FY18, thereby witnessing an increase of 12.9%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY18, a growth of 60.5%.
  • Current assets rose 15% and stood at Rs 7 billion, while fixed assets rose 0% and stood at Rs 27 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 43 billion as against Rs 41 billion during FY18, thereby witnessing a growth of 4%.

EIH Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 28,828 29,934 3.8
 
Current Liabilities Rs m 5,771 6,514 12.9
Long-term Debt Rs m 1,400 2,247 60.5
Total Liabilities Rs m 40,742 42,518 4.4
 
Current assets Rs m 5,827 6,679 14.6
Fixed Assets Rs m 26,953 27,068 0.4
Total Assets Rs m 40,742 42,518 4.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



EIH Cash Flow Statement Analysis

  • EIH's cash flow from operating activities (CFO) during FY19 stood at Rs 3 billion, an improvement of 7.2% 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 -190 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 311 million from the Rs -9 million net cash flows seen during FY18.

EIH 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 2,718 2,913 7.2%
Cash Flow from Investing Activities Rs m -3,179 -2,412 -
Cash Flow from Financing Activities Rs m 452 -190 -
Net Cash Flow Rs m -9 311 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for EIH

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.6, an decline from the EPS of Rs 3.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 166.4, stands at 83.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 5.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 36.0 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 28.0 31.7
TTM Earnings per share Rs 3.4 2.6
Diluted earnings per share Rs 3.4 2.6
Price to Cash Flow x 32.1 36.0
TTM P/E ratio x 83.9 83.9
Price / Book Value ratio x 3.4 3.4
Market Cap Rs m 95,109 95,109
Dividends per share (Unadj.) Rs 0.9 0.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for EIH

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY19, from 1.0x 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 5.2x during FY19, from 12.5x 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 declined and down at 5.0% during FY19, from 6.8% 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 10.1% 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 declined and down at 4.7% during FY19, from 5.4% 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 1.0 1.0
Debtors’ Days Days 51 50
Interest coverage x 12.5 5.2
Debt to equity ratio x 0.0 0.1
Return on assets % 5.4 4.7
Return on equity % 6.8 5.0
Return on capital employed % 10.1 8.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

EIH Share Price Performance

Over the last one year, EIH share price has moved up from Rs 162.8 to Rs 166.4, registering a gain of Rs 3.7 or around 2.2%.

Overall, the S&P BSE SENSEX is up 3.0% over the year.

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

Equitymaster requests your view! Post a comment on "EIH 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

EIH Announces Quarterly Results (1QFY20); Net Profit Down 169.7% (Quarterly Result Update)

Aug 28, 2019 | Updated on Aug 28, 2019

For the quarter ended June 2019, EIH has posted a net profit of Rs 71 m (down 169.7% YoY). Sales on the other hand came in at Rs 3 bn (down 13.5% YoY). Read on for a complete analysis of EIH's quarterly results.

EIH Announces Quarterly Results (4QFY19); Net Profit Down 77.2% (Quarterly Result Update)

Jun 3, 2019 | Updated on Jun 3, 2019

For the quarter ended March 2019, EIH has posted a net profit of Rs 128 m (down 77.2% YoY). Sales on the other hand came in at Rs 4 bn (down 0.1% YoY). Read on for a complete analysis of EIH's quarterly results.

Chalet Hotels IPO: Should You Bet on This High-End Hotel Chain Owner? (IPO)

Jan 29, 2019

Should you subscribe to the IPO of Chalet Hotels Ltd?

Lemon Tree Hotels IPO: India's Largest Hotel Chain in the Mid-Priced Hotel Sector (IPO)

Mar 23, 2018

Should you subscribe to the IPO of Lemon Tree Hotels Ltd?

More Views on News

Most Popular

My 3 Best Small-cap Stocks to Get Rich in this Market Rebound(Profit Hunter)

Oct 14, 2019

This is once in a decade opportunity to make a killing from smallcap rebound.

Finally, Is the Share Price of Yes Bank Ready for a Rebound?(The 5 Minute Wrapup)

Oct 7, 2019

Here's what every individual investor must know about Yes Bank...

Rebound Riches Could be Yours With These Stocks(Profit Hunter)

Oct 4, 2019

The secret to multibagger is not big businesses, but great managements... Here's how to find them to make the most of once in a decade rebound opportunity.

The One Stock I Like in this Market(The 5 Minute Wrapup)

Oct 10, 2019

There are rare periods in markets when you get good quality stocks at attractive valuations. Is this one such period?

5 Smart Money Stocks to Profit from the Market Rebound(The 5 Minute Wrapup)

Oct 11, 2019

Now is the time to put money in these 5 stocks to take advantage of the recovery in the economy and the markets.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2020
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK EIH

COMPARE EIH WITH

MARKET STATS