EVEREADY INDUSTRIES 2018-19 Annual Report Analysis

Sun, 31 Mar

EVEREADY 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.

EVEREADY INDUSTRIES Income Statement Analysis

• Operating income during the year rose 4.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.3% in FY19 as against 7.3% in FY18.
• Depreciation charges increased by 13.5% and finance costs increased by 86.9% YoY, respectively.
• Other income grew by 116.5% YoY.
• Net profit for the year declined by 8.4% YoY.
• Net profit margins during the year declined from 3.7% in FY18 to 3.2% in FY19.

EVEREADY INDUSTRIES Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	14,375	15,066	4.8%
Other income	Rs m	197	427	116.5%
Total Revenues	Rs m	14,572	15,494	6.3%
Gross profit	Rs m	1,044	946	-9.4%
Depreciation	Rs m	192	218	13.5%
Interest	Rs m	293	548	86.9%
Profit before tax	Rs m	756	607	-19.8%
Tax	Rs m	224	120	-46.7%
Profit after tax	Rs m	532	487	-8.4%
Gross profit margin	%	7.3	6.3
Effective tax rate	%	29.7	19.7
Net profit margin	%	3.7	3.2

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EVEREADY INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 6 billion as compared to Rs 6 billion in FY18, thereby witnessing an increase of 3.7%.
• Long-term debt stood at Rs 2 billion as compared to Rs 855 million during FY18, a growth of 145.7%.
• Current assets rose 19% and stood at Rs 8 billion, while fixed assets rose 16% and stood at Rs 5 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 13 billion as against Rs 11 billion during FY18, thereby witnessing a growth of 18%.

EVEREADY INDUSTRIES Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	3,427	3,759	9.7
Current Liabilities	Rs m	6,140	6,369	3.7
Long-term Debt	Rs m	855	2,100	145.7
Total Liabilities	Rs m	10,858	12,779	17.7
Current assets	Rs m	6,545	7,795	19.1
Fixed Assets	Rs m	4,313	4,985	15.6
Total Assets	Rs m	10,858	12,779	17.7

EVEREADY INDUSTRIES Cash Flow Statement Analysis

• EVEREADY INDUSTRIES's cash flow from operating activities (CFO) during FY19 stood at Rs 701 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -1 billion, an improvement of 44.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 762 million, an improvement of 306% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 17 million from the Rs -560 million net cash flows seen during FY18.

EVEREADY 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	808	701	-13.3%
Cash Flow from Investing Activities	Rs m	-998	-1,446	-
Cash Flow from Financing Activities	Rs m	-370	762	-
Net Cash Flow	Rs m	-560	17	-

Current Valuations for EVEREADY INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.7, an decline from the EPS of Rs 7.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 192.7, stands at 29.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 29.4 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	197.8	207.3
TTM Earnings per share	Rs	7.3	6.7
Diluted earnings per share	Rs	7.3	6.7
Price to Cash Flow	x	37.4	29.4
TTM P/E ratio	x	49.4	29.6
Price / Book Value ratio	x	7.7	5.5
Market Cap	Rs m	26,411	20,716
Dividends per share (Unadj.)	Rs	1.5	0.0

Ratio Analysis for EVEREADY INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY19, from 1.1x 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 2.1x during FY19, from 3.6x 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 13.0% during FY19, from 15.5% 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 19.7% during FY19, from 24.5% 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 8.1% during FY19, from 7.6% 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	1.1	1.2
Debtors’ Days	Days	306	330
Interest coverage	x	3.6	2.1
Debt to equity ratio	x	0.2	0.6
Return on assets	%	7.6	8.1
Return on equity	%	15.5	13.0
Return on capital employed	%	24.5	19.7

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

EVEREADY INDUSTRIES Share Price Performance

Over the last one year, EVEREADY INDUSTRIES share price has moved down from Rs 372.1 to Rs 192.7, registering a loss of Rs 179.5 or around 48.2%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 23,856.7 (up 0.7%). Over the last one year it has moved up from 22,261.9 to 23,856.7, a gain of 1,595 points (up 7.2%).

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

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

Read: Latest Annual Report Analysis of EVEREADY INDUSTRIES