EIMCO ELECON 2018-19 Annual Report Analysis

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EIMCO ELECON 2018-19 Annual Report Analysis
Thu, 19 Sep

EIMCO ELECON 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.

EIMCO ELECON Income Statement Analysis

  • Operating income during the year rose 31.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 64.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.7% in FY19 as against 11.0% in FY18.
  • Depreciation charges decreased by 0.4% and finance costs increased by 5.6% YoY, respectively.
  • Other income grew by 11.5% YoY.
  • Net profit for the year grew by 42.4% YoY.
  • Net profit margins during the year grew from 10.9% in FY18 to 11.9% in FY19.

EIMCO ELECON Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 1,401 1,843 31.5%
Other income Rs m 96 107 11.5%
Total Revenues Rs m 1,497 1,950 30.3%
Gross profit Rs m 154 253 64.3%
Depreciation Rs m 50 50 -0.4%
Interest Rs m 5 6 5.6%
Profit before tax Rs m 194 304 56.5%
Tax Rs m 30 72 140.8%
Profit after tax Rs m 163 232 42.4%
Gross profit margin % 11.0 13.7
Effective tax rate % 15.4 23.7
Net profit margin % 10.9 11.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



EIMCO ELECON Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 273 million as compared to Rs 334 million in FY18, thereby witnessing an decrease of -18.1%.
  • Long-term debt stood at Rs 16 million as compared to Rs 6 million during FY18, a growth of 162.9%.
  • Current assets fell 32% and stood at Rs 1 billion, while fixed assets rose 8% and stood at Rs 837 million in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 4 billion as against Rs 3 billion during FY18, thereby witnessing a growth of 4%.

EIMCO ELECON Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 2,946 3,143 6.7
 
Current Liabilities Rs m 334 273 -18.1
Long-term Debt Rs m 6 16 162.9
Total Liabilities Rs m 3,380 3,530 4.4
 
Current assets Rs m 1,730 1,184 -31.6
Fixed Assets Rs m 773 837 8.3
Total Assets Rs m 3,380 3,530 4.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



EIMCO ELECON Cash Flow Statement Analysis

  • EIMCO ELECON's cash flow from operating activities (CFO) during FY19 stood at Rs 101 million, an improvement of 2.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -80 million, an improvement of 54.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -25 million, an improvement of 13% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -5 million from the Rs 17 million net cash flows seen during FY18.

EIMCO ELECON 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 98 101 2.8%
Cash Flow from Investing Activities Rs m -52 -80 -
Cash Flow from Financing Activities Rs m -29 -25 -
Net Cash Flow Rs m 17 -5 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for EIMCO ELECON

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.2, an improvement from the EPS of Rs 28.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 292.0, stands at 8.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.0 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 242.8 319.4
TTM Earnings per share Rs 28.2 40.2
Diluted earnings per share Rs 28.2 40.2
Price to Cash Flow x 7.9 6.0
TTM P/E ratio x 8.2 8.2
Price / Book Value ratio x 1.1 0.7
Market Cap Rs m 1,685 1,684
Dividends per share (Unadj.) Rs 5.0 7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for EIMCO ELECON

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 4.3x during FY19, from 5.2x 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 54.4x during FY19, from 37.0x 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 7.4% during FY19, from 5.5% 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 9.8% during FY19, from 6.7% 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 6.7% during FY19, from 5.0% 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 5.2 4.3
Debtors’ Days Days 157 120
Interest coverage x 37.0 54.4
Debt to equity ratio x 0.0 0.0
Return on assets % 5.0 6.7
Return on equity % 5.5 7.4
Return on capital employed % 6.7 9.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

EIMCO ELECON Share Price Performance

Over the last one year, EIMCO ELECON share price has moved down from Rs 375.0 to Rs 292.0, registering a loss of Rs 83.0 or around 22.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 16,797.7 (down 1.0%). Over the last one year it has moved down from 18,168.6 to 16,797.7, a loss of 1,371 points (down 7.5%).

Overall, the S&P BSE SENSEX is down 2.7% over the year.

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

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