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ESCORTS LIMITED 2018-19 Annual Report Analysis
Sun, 31 Mar

ESCORTS LIMITED 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.

ESCORTS LIMITED Income Statement Analysis

  • Operating income during the year rose 24.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 34.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.3% in FY19 as against 10.5% in FY18.
  • Depreciation charges increased by 19.1% and finance costs decreased by 33.7% YoY, respectively.
  • Other income grew by 31.9% YoY.
  • Net profit for the year grew by 37.9% YoY.
  • Net profit margins during the year grew from 6.9% in FY18 to 7.6% in FY19.

ESCORTS LIMITED Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 50,444 62,648 24.2%
Other income Rs m 845 1,115 31.9%
Total Revenues Rs m 51,289 63,764 24.3%
Gross profit Rs m 5,273 7,109 34.8%
Depreciation Rs m 732 872 19.1%
Interest Rs m 295 195 -33.7%
Profit before tax Rs m 5,091 7,157 40.6%
Tax Rs m 1,625 2,378 46.3%
Profit after tax Rs m 3,466 4,779 37.9%
Gross profit margin % 10.5 11.3
Effective tax rate % 31.9 33.2
Net profit margin % 6.9 7.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ESCORTS LIMITED Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 19 billion as compared to Rs 17 billion in FY18, thereby witnessing an increase of 13.9%.
  • Long-term debt down at Rs 35 million as compared to Rs 147 million during FY18, a fall of 76.0%.
  • Current assets rose 29% and stood at Rs 28 billion, while fixed assets rose 6% and stood at Rs 19 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 47 billion as against Rs 40 billion during FY18, thereby witnessing a growth of 18%.

ESCORTS LIMITED Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 22,151 26,695 20.5
 
Current Liabilities Rs m 16,841 19,187 13.9
Long-term Debt Rs m 147 35 -76.0
Total Liabilities Rs m 39,725 47,070 18.5
 
Current assets Rs m 21,529 27,700 28.7
Fixed Assets Rs m 18,197 19,370 6.4
Total Assets Rs m 39,725 47,070 18.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ESCORTS LIMITED Cash Flow Statement Analysis

  • ESCORTS LIMITED's cash flow from operating activities (CFO) during FY19 stood at Rs -2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -174 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 2 billion, an improvement of 19,382% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -611 million from the Rs 849 million net cash flows seen during FY18.

ESCORTS LIMITED 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 4,601 -2,343 -
Cash Flow from Investing Activities Rs m -3,742 -174 -
Cash Flow from Financing Activities Rs m -10 1,909 -
Net Cash Flow Rs m 849 -611 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ESCORTS LIMITED

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.0, an improvement from the EPS of Rs 28.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 796.9, stands at 21.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.9 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 411.5 511.1
TTM Earnings per share Rs 28.3 39.0
Diluted earnings per share Rs 26.3 36.2
Price to Cash Flow x 25.7 16.9
TTM P/E ratio x 30.7 21.7
Price / Book Value ratio x 4.0 3.6
Market Cap Rs m 88,286 95,677
Dividends per share (Unadj.) Rs 2.0 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ESCORTS LIMITED

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY19, from 1.3x 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 37.6x during FY19, from 18.3x 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 17.9% during FY19, from 15.6% 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 27.5% during FY19, from 24.2% 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 10.6% during FY19, from 9.5% 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 1.3 1.4
Debtors’ Days Days 4 5
Interest coverage x 18.3 37.6
Debt to equity ratio x 0.0 0.0
Return on assets % 9.5 10.6
Return on equity % 15.6 17.9
Return on capital employed % 24.2 27.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ESCORTS LIMITED Share Price Performance

Over the last one year, ESCORTS LIMITED share price has moved down from Rs 818.4 to Rs 796.9, registering a loss of Rs 21.5 or around 2.6%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 18,824.9 (up 1.2%). Over the last one year it has moved down from 24,057.3 to 18,824.9, a loss of 5,232 points (down 21.7%).

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

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

Annual Report FAQs

What is the current share price of ESCORTS LIMITED?

ESCORTS LIMITED currently trades at Rs 2,778.6 per share. You can check out the latest share price performance of ESCORTS LIMITED here...

What was the revenue of ESCORTS LIMITED in FY19? How does it compare to earlier years?

The revenues of ESCORTS LIMITED stood at Rs 63,764 m in FY19, which was up 24.3% compared to Rs 51,289 m reported in FY18.

ESCORTS LIMITED's revenue has grown from Rs 41,066 m in FY15 to Rs 63,764 m in FY19.

Over the past 5 years, the revenue of ESCORTS LIMITED has grown at a CAGR of 11.6%.

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

The net profit of ESCORTS LIMITED stood at Rs 4,779 m in FY19, which was up 37.9% compared to Rs 3,466 m reported in FY18.

This compares to a net profit of Rs 1,308 m in FY17 and a net profit of Rs 702 m in FY16.

Over the past 5 years, ESCORTS LIMITED net profit has grown at a CAGR of 58.3%.

What does the cash flow statement of ESCORTS LIMITED 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 ESCORTS LIMITED reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs -2,343 m as compared to Rs 4,601 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs -174 m as compared to Rs -3,742 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs 1,909 m as compared to Rs -10 m in FY18.

Here's the cash flow statement of ESCORTS LIMITED for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations-982,1223,0384,601-2,343
From Investments166-450-1,546-3,742-174
From Financial Activity13-1,909-1,131-101,909
Net Cashflow80-227361849-611

What does the Key Ratio analysis of ESCORTS LIMITED 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 ESCORTS LIMITED reveals:

  • Operating profit margins witnessed a fall and down at 11.3% in FY19 as against 10.5% in FY18.
  • Net profit margins grew from 6.9% in FY18 to 7.6% 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 ESCORTS LIMITED for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)3.21.85.010.511.3
Net Profit Margin (%)1.92.03.26.97.6
Debt to Equity Ratio (x)0.10.10.00.00.0

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