EXIDE INDUSTRIES 2018-19 Annual Report Analysis

Sun, 31 Mar

EXIDE 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.

EXIDE INDUSTRIES Income Statement Analysis

• Operating income during the year rose 17.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.1% in FY19 as against 10.7% in FY18.
• Depreciation charges increased by 28.6% and finance costs increased by 2.4% YoY, respectively.
• Other income declined by 24.1% YoY.
• Net profit for the year grew by 22.1% YoY.
• Net profit margins during the year grew from 5.5% in FY18 to 5.8% in FY19.

EXIDE INDUSTRIES Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	125,334	147,209	17.5%
Other income	Rs m	944	717	-24.1%
Total Revenues	Rs m	126,278	147,926	17.1%
Gross profit	Rs m	13,350	16,380	22.7%
Depreciation	Rs m	2,672	3,435	28.6%
Interest	Rs m	1,143	1,171	2.4%
Profit before tax	Rs m	10,479	12,490	19.2%
Tax	Rs m	3,538	4,017	13.5%
Profit after tax	Rs m	6,941	8,474	22.1%
Gross profit margin	%	10.7	11.1
Effective tax rate	%	33.8	32.2
Net profit margin	%	5.5	5.8

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EXIDE INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 34 billion as compared to Rs 31 billion in FY18, thereby witnessing an increase of 10.5%.
• Long-term debt stood at Rs 98 million as compared to Rs 89 million during FY18, a growth of 9.6%.
• Current assets rose 7% and stood at Rs 55 billion, while fixed assets rose 15% and stood at Rs 170 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 224 billion as against Rs 198 billion during FY18, thereby witnessing a growth of 13%.

EXIDE INDUSTRIES Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	54,292	61,069	12.5
Current Liabilities	Rs m	30,542	33,751	10.5
Long-term Debt	Rs m	89	98	9.6
Total Liabilities	Rs m	198,147	224,309	13.2
Current assets	Rs m	50,886	54,605	7.3
Fixed Assets	Rs m	147,260	169,705	15.2
Total Assets	Rs m	198,147	224,309	13.2

EXIDE INDUSTRIES Cash Flow Statement Analysis

• EXIDE INDUSTRIES's cash flow from operating activities (CFO) during FY19 stood at Rs 17 billion, an improvement of 84.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -14 billion, an improvement of 167.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion, an improvement of 44% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 323 million from the Rs -64 million net cash flows seen during FY18.

EXIDE 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	9,144	16,868	84.5%
Cash Flow from Investing Activities	Rs m	-5,366	-14,374	-
Cash Flow from Financing Activities	Rs m	-3,861	-2,167	-
Net Cash Flow	Rs m	-64	323	-

Current Valuations for EXIDE INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.0, an improvement from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 218.7, stands at 22.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 17.8 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	147.5	173.2
TTM Earnings per share	Rs	8.2	10.0
Diluted earnings per share	Rs	8.2	10.0
Price to Cash Flow	x	19.6	17.8
TTM P/E ratio	x	28.2	22.0
Price / Book Value ratio	x	3.5	3.5
Market Cap	Rs m	188,105	211,480
Dividends per share (Unadj.)	Rs	2.4	2.4

Ratio Analysis for EXIDE INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x 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 improved and stood at 11.7x during FY19, from 10.2x 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 improved and stood at 13.9% during FY19, from 12.8% 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 22.3% during FY19, from 21.4% 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 4.3% during FY19, from 4.1% 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	1.6
Debtors’ Days	Days	3	3
Interest coverage	x	10.2	11.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.1	4.3
Return on equity	%	12.8	13.9
Return on capital employed	%	21.4	22.3

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

EXIDE INDUSTRIES Share Price Performance

Over the last one year, EXIDE INDUSTRIES share price has moved down from Rs 222.0 to Rs 218.7, registering a loss of Rs 3.3 or around 1.5%.

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

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

Read: Latest Annual Report Analysis of EXIDE INDUSTRIES