ENGINEERS INDIA 2018-19 Annual Report Analysis

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ENGINEERS INDIA 2018-19 Annual Report Analysis
Wed, 25 Sep

ENGINEERS INDIA 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.

ENGINEERS INDIA Income Statement Analysis

  • Operating income during the year rose 35.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 12.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.2% in FY19 as against 23.4% in FY18.
  • Depreciation charges decreased by 6.3% and finance costs increased by 112.1% YoY, respectively.
  • Other income grew by 26.2% YoY.
  • Net profit for the year declined by 3.6% YoY.
  • Net profit margins during the year declined from 19.2% in FY18 to 13.7% in FY19.

ENGINEERS INDIA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 18,243 24,758 35.7%
Other income Rs m 1,762 2,223 26.2%
Total Revenues Rs m 20,005 26,981 34.9%
Gross profit Rs m 4,275 3,756 -12.1%
Depreciation Rs m 240 225 -6.3%
Interest Rs m 6 12 112.1%
Profit before tax Rs m 5,791 5,742 -0.8%
Tax Rs m 1,957 2,013 2.8%
Profit after tax Rs m 3,833 3,696 -3.6%
Gross profit margin % 23.4 15.2
Effective tax rate % 33.8 35.1
Net profit margin % 19.2 13.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ENGINEERS INDIA Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 24 billion as compared to Rs 21 billion in FY18, thereby witnessing an increase of 12.0%.
  • Current assets rose 5% and stood at Rs 38 billion, while fixed assets rose 8% and stood at Rs 6 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 48 billion as against Rs 45 billion during FY18, thereby witnessing a growth of 6%.

ENGINEERS INDIA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 23,412 23,473 0.3
 
Current Liabilities Rs m 21,454 24,030 12.0
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 45,139 47,634 5.5
 
Current assets Rs m 36,344 38,246 5.2
Fixed Assets Rs m 5,263 5,686 8.0
Total Assets Rs m 45,139 47,634 5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ENGINEERS INDIA Cash Flow Statement Analysis

  • ENGINEERS INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 5 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -38 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -4 billion, an improvement of 59% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 2 billion from the Rs -1 billion net cash flows seen during FY18.

ENGINEERS INDIA 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 5,988 5,490 -8.3%
Cash Flow from Investing Activities Rs m 1,647 -38 -
Cash Flow from Financing Activities Rs m -8,920 -3,619 -
Net Cash Flow Rs m -1,285 1,833 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ENGINEERS INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.8, an decline from the EPS of Rs 6.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 113.4, stands at 18.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 3.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 19.3 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 28.9 39.2
TTM Earnings per share Rs 6.1 5.8
Diluted earnings per share Rs 5.7 5.5
Price to Cash Flow x 17.6 19.3
TTM P/E ratio x 17.6 18.7
Price / Book Value ratio x 4.7 3.6
Market Cap Rs m 71,627 76,389
Dividends per share (Unadj.) Rs 4.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ENGINEERS INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY19, from 1.7x 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 467.8x during FY19, from 999.4x 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 15.7% during FY19, from 16.4% 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 24.4% during FY19, from 24.8% 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 7.8% during FY19, from 8.5% 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 1.7 1.6
Debtors’ Days Days 112 63
Interest coverage x 999.4 467.8
Debt to equity ratio x 0.0 0.0
Return on assets % 8.5 7.8
Return on equity % 16.4 15.7
Return on capital employed % 24.8 24.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

ENGINEERS INDIA Share Price Performance

Over the last one year, ENGINEERS INDIA share price has moved down from Rs 120.1 to Rs 113.4, registering a loss of Rs 6.7 or around 5.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,748.3 (down 0.8%). Over the last one year it has moved up from 17,716.2 to 18,748.3, a gain of 1,032 points (up 5.8%).

Overall, the S&P BSE SENSEX is up 6.7% over the year.

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

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