ESSEL PROPACK 2018-19 Annual Report Analysis

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ESSEL PROPACK 2018-19 Annual Report Analysis
Wed, 5 Jun

ESSEL PROPACK 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.

ESSEL PROPACK Income Statement Analysis

  • Operating income during the year rose 11.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 6.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.8% in FY19 as against 19.7% in FY18.
  • Depreciation charges increased by 11.4% and finance costs increased by 11.4% YoY, respectively.
  • Other income grew by 32.2% YoY.
  • Net profit for the year grew by 12.2% YoY.
  • Net profit margins during the year grew from 7.1% in FY18 to 7.2% in FY19.

ESSEL PROPACK Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 24,239 27,069 11.7%
Other income Rs m 132 174 32.2%
Total Revenues Rs m 24,371 27,244 11.8%
Gross profit Rs m 4,781 5,102 6.7%
Depreciation Rs m 1,671 1,861 11.4%
Interest Rs m 550 613 11.4%
Profit before tax Rs m 2,691 2,802 4.1%
Tax Rs m 889 932 4.8%
Profit after tax Rs m 1,742 1,954 12.2%
Gross profit margin % 19.7 18.8
Effective tax rate % 33.0 33.3
Net profit margin % 7.1 7.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ESSEL PROPACK Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 6 billion as compared to Rs 7 billion in FY18, thereby witnessing an decrease of -13.8%.
  • Long-term debt stood at Rs 5 billion as compared to Rs 4 billion during FY18, a growth of 4.5%.
  • Current assets fell 4% and stood at Rs 11 billion, while fixed assets rose 10% and stood at Rs 13 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 25 billion as against Rs 24 billion during FY18, thereby witnessing a growth of 3%.

ESSEL PROPACK Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 12,506 13,880 11.0
 
Current Liabilities Rs m 6,657 5,740 -13.8
Long-term Debt Rs m 4,492 4,693 4.5
Total Liabilities Rs m 24,421 25,201 3.2
 
Current assets Rs m 11,340 10,895 -3.9
Fixed Assets Rs m 12,258 13,486 10.0
Total Assets Rs m 24,421 25,201 3.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ESSEL PROPACK Cash Flow Statement Analysis

  • ESSEL PROPACK's cash flow from operating activities (CFO) during FY19 stood at Rs 4 billion, an improvement of 3.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -2 billion, an improvement of 20.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -254 million from the Rs 337 million net cash flows seen during FY18.

ESSEL PROPACK 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 3,435 3,564 3.8%
Cash Flow from Investing Activities Rs m -1,558 -1,879 -
Cash Flow from Financing Activities Rs m -1,539 -1,939 -
Net Cash Flow Rs m 337 -254 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ESSEL PROPACK

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.2, an decline from the EPS of Rs 11.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 130.3, stands at 27.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 2.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.9 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 154.2 85.9
TTM Earnings per share Rs 11.1 6.2
Diluted earnings per share Rs 5.5 6.2
Price to Cash Flow x 6.0 10.9
TTM P/E ratio x 13.5 27.0
Price / Book Value ratio x 3.4 4.2
Market Cap Rs m 20,473 40,946
Dividends per share (Unadj.) Rs 2.4 1.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ESSEL PROPACK

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.9x 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 5.6x during FY19, from 5.9x 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 14.1% during FY19, from 13.9% 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 18.8% during FY19, from 18.7% 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 10.2% during FY19, from 9.4% 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 1.7 1.9
Debtors’ Days Days 69 67
Interest coverage x 5.9 5.6
Debt to equity ratio x 0.4 0.3
Return on assets % 9.4 10.2
Return on equity % 13.9 14.1
Return on capital employed % 18.7 18.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

ESSEL PROPACK Share Price Performance

Over the last one year, ESSEL PROPACK share price has moved up from Rs 123.8 to Rs 130.3, registering a gain of Rs 6.4 or around 5.2%.

Overall, the S&P BSE SENSEX is up 14.5% over the year.

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

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