EVEREST INDUSTRIES 2018-19 Annual Report Analysis

Sun, 31 Mar

EVEREST INDUSTRIES 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.

EVEREST INDUSTRIES Income Statement Analysis

• Operating income during the year rose 13.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.4% in FY19 as against 7.2% in FY18.
• Depreciation charges decreased by 12.7% and finance costs decreased by 39.4% YoY, respectively.
• Other income declined by 35.5% YoY.
• Net profit for the year grew by 16.6% YoY.
• Net profit margins during the year grew from 4.3% in FY18 to 4.4% in FY19.

EVEREST INDUSTRIES Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	12,441	14,083	13.2%
Other income	Rs m	100	65	-35.5%
Total Revenues	Rs m	12,542	14,148	12.8%
Gross profit	Rs m	899	1,046	16.3%
Depreciation	Rs m	235	206	-12.7%
Interest	Rs m	126	76	-39.4%
Profit before tax	Rs m	638	829	29.9%
Tax	Rs m	107	210	95.5%
Profit after tax	Rs m	531	619	16.6%
Gross profit margin	%	7.2	7.4
Effective tax rate	%	16.8	25.4
Net profit margin	%	4.3	4.4

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EVEREST INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 4 billion as compared to Rs 3 billion in FY18, thereby witnessing an increase of 18.8%.
• Long-term debt down at Rs 467 million as compared to Rs 511 million during FY18, a fall of 8.7%.
• Current assets rose 31% and stood at Rs 5 billion, while fixed assets fell 2% and stood at Rs 5 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 10 billion as against Rs 9 billion during FY18, thereby witnessing a growth of 12%.

EVEREST INDUSTRIES Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	3,967	4,462	12.5
Current Liabilities	Rs m	3,257	3,868	18.8
Long-term Debt	Rs m	511	467	-8.7
Total Liabilities	Rs m	9,318	10,434	12.0
Current assets	Rs m	3,898	5,108	31.0
Fixed Assets	Rs m	5,420	5,326	-1.7
Total Assets	Rs m	9,318	10,434	12.0

EVEREST INDUSTRIES Cash Flow Statement Analysis

• EVEREST INDUSTRIES's cash flow from operating activities (CFO) during FY19 stood at Rs 346 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -223 million, an improvement of 41.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -160 million, an improvement of 87% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -36 million from the Rs 94 million net cash flows seen during FY18.

EVEREST INDUSTRIES 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	1,481	346	-76.6%
Cash Flow from Investing Activities	Rs m	-157	-223	-
Cash Flow from Financing Activities	Rs m	-1,230	-160	-
Net Cash Flow	Rs m	94	-36	-

Current Valuations for EVEREST INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.6, an improvement from the EPS of Rs 33.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 465.9, stands at 11.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 9.3 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	796.0	901.0
TTM Earnings per share	Rs	33.9	39.6
Diluted earnings per share	Rs	33.8	39.5
Price to Cash Flow	x	9.9	9.3
TTM P/E ratio	x	14.9	11.4
Price / Book Value ratio	x	1.7	1.7
Market Cap	Rs m	6,760	7,641
Dividends per share (Unadj.)	Rs	6.5	7.5

Ratio Analysis for EVEREST INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY19, from 1.2x 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 11.9x during FY19, from 6.1x 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 13.9% during FY19, from 13.4% 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 improved and stood at 18.4% during FY19, from 17.1% 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 6.7% during FY19, from 7.0% 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	1.2	1.3
Debtors’ Days	Days	207	257
Interest coverage	x	6.1	11.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.0	6.7
Return on equity	%	13.4	13.9
Return on capital employed	%	17.1	18.4

To see how EVEREST INDUSTRIES has performed over the last 5 years, please visit here.

EVEREST INDUSTRIES Share Price Performance

Over the last one year, EVEREST INDUSTRIES share price has moved down from Rs 482.8 to Rs 465.9, registering a loss of Rs 16.9 or around 3.5%.

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

(To know more, check out historical annual results for EVEREST INDUSTRIES and quarterly results for EVEREST INDUSTRIES)

Read: Latest Annual Report Analysis of EVEREST INDUSTRIES