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ENGINEERS INDIA 2018-19 Annual Report Analysis
Sun, 31 Mar

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 35.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 12.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.1% in FY19 as against 23.3% in FY18.
  • Depreciation charges decreased by 6.3% and finance costs increased by 40.6% YoY, respectively.
  • Other income grew by 25.7% YoY.
  • Net profit for the year declined by 2.7% YoY.
  • Net profit margins during the year declined from 20.9% in FY18 to 15.1% in FY19.

ENGINEERS INDIA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 18,300 24,767 35.3%
Other income Rs m 1,796 2,258 25.7%
Total Revenues Rs m 20,096 27,025 34.5%
Gross profit Rs m 4,255 3,737 -12.2%
Depreciation Rs m 240 225 -6.3%
Interest Rs m 20 28 40.6%
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 3,729 -2.7%
Gross profit margin % 23.3 15.1
Effective tax rate % 33.8 35.1
Net profit margin % 20.9 15.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

ENGINEERS INDIA Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 24 billion as compared to Rs 27 billion in FY18, thereby witnessing an decrease of -11.4%.
  • Current assets fell 9% and stood at Rs 38 billion, while fixed assets rose 121% and stood at Rs 13 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 51 billion as against Rs 48 billion during FY18, thereby witnessing a growth of 7%.

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 23,445 0.1
 
Current Liabilities Rs m 27,134 24,030 -11.4
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 47,882 51,171 6.9
 
Current assets Rs m 42,024 38,246 -9.0
Fixed Assets Rs m 5,857 12,925 120.7
Total Assets Rs m 47,882 51,171 6.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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: Accord Fintech, Equitymaster



Current Valuations for ENGINEERS INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.9, 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 117.0, stands at 17.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 3.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.5 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 29.0 39.2
TTM Earnings per share Rs 6.1 5.9
Diluted earnings per share Rs 6.8 6.6
Price to Cash Flow x 21.8 21.5
TTM P/E ratio x 23.5 17.8
Price / Book Value ratio x 4.7 3.6
Market Cap Rs m 109,684 84,866
Dividends per share (Unadj.) Rs 4.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ENGINEERS INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.6x during FY19, from 1.5x 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 209.1x during FY19, from 296.2x 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 15.9% 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 24.6% 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 7.3% during FY19, from 8.0% 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 1.5 1.6
Debtors’ Days Days 1,121 629
Interest coverage x 296.2 209.1
Debt to equity ratio x 0.0 0.0
Return on assets % 8.0 7.3
Return on equity % 16.4 15.9
Return on capital employed % 24.8 24.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 158.1 to Rs 117.0, registering a loss of Rs 41.1 or around 26.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of ENGINEERS INDIA?

ENGINEERS INDIA currently trades at Rs 202.0 per share. You can check out the latest share price performance of ENGINEERS INDIA here...

What was the revenue of ENGINEERS INDIA in FY19? How does it compare to earlier years?

The revenues of ENGINEERS INDIA stood at Rs 27,025 m in FY19, which was up 34.5% compared to Rs 20,096 m reported in FY18.

ENGINEERS INDIA's revenue has grown from Rs 18,456 m in FY16 to Rs 27,025 m in FY19.

Over the past 4 years, the revenue of ENGINEERS INDIA has grown at a CAGR of 13.6%.

What was the net profit of ENGINEERS INDIA in FY19? How does it compare to earlier years?

The net profit of ENGINEERS INDIA stood at Rs 3,729 m in FY19, which was down -2.7% compared to Rs 3,833 m reported in FY18.

This compares to a net profit of Rs 3,302 m in FY17 and a net profit of Rs 2,814 m in FY16.

Over the past 4 years, ENGINEERS INDIA net profit has grown at a CAGR of 9.8%.

What does the cash flow statement of ENGINEERS INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ENGINEERS INDIA reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 5,490 m as compared to Rs 5,988 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -38 m as compared to Rs 1,647 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs -3,619 m as compared to Rs -8,920 m in FY18.

Here's the cash flow statement of ENGINEERS INDIA for the past 4 years.

(Rs m)FY16FY17FY18FY19
From Operations8812,3645,9885,490
From Investments7021,9711,647-38
From Financial Activity-1,622-2,839-8,920-3,619
Net Cashflow-391,496-1,2851,833

What does the Key Ratio analysis of ENGINEERS INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ENGINEERS INDIA reveals:

  • Operating profit margins witnessed a fall and stood at 15.1% in FY19 as against 23.3% in FY18.
  • Net profit margins declined from 20.9% in FY18 to 15.1% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of ENGINEERS INDIA for the past 4 years.

 FY16FY17FY18FY19
Operating Profit Margin (%)9.719.723.315.1
Net Profit Margin (%)18.322.420.915.1
Debt to Equity Ratio (x)0.00.00.00.0

Read: Latest Annual Report Analysis of ENGINEERS INDIA

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