EXIDE INDUSTRIES 2019-20 Annual Report Analysis

Tue, 31 Mar

EXIDE INDUSTRIES has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

EXIDE INDUSTRIES Income Statement Analysis

• Operating income during the year fell 1.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 14.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.7% in FY20 as against 11.1% in FY19.
• Depreciation charges increased by 21.6% and finance costs decreased by 7.6% YoY, respectively.
• Other income grew by 36.5% YoY.
• Net profit for the year declined by 10.0% YoY.
• Net profit margins during the year declined from 5.8% in FY19 to 5.3% in FY20.

EXIDE INDUSTRIES Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	147,209	144,710	-1.7%
Other income	Rs m	717	979	36.5%
Total Revenues	Rs m	147,926	145,689	-1.5%
Gross profit	Rs m	16,380	13,998	-14.5%
Depreciation	Rs m	3,435	4,176	21.6%
Interest	Rs m	1,171	1,082	-7.6%
Profit before tax	Rs m	12,490	9,719	-22.2%
Tax	Rs m	4,017	2,094	-47.9%
Profit after tax	Rs m	8,474	7,625	-10.0%
Gross profit margin	%	11.1	9.7
Effective tax rate	%	32.2	21.5
Net profit margin	%	5.8	5.3

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EXIDE INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY20 down at Rs 33 billion as compared to Rs 34 billion in FY19, thereby witnessing an decrease of -3.7%.
• Long-term debt down at Rs 89 million as compared to Rs 98 million during FY19, a fall of 9.2%.
• Current assets fell 1% and stood at Rs 54 billion, while fixed assets rose 12% and stood at Rs 189 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 244 billion as against Rs 224 billion during FY19, thereby witnessing a growth of 9%.

EXIDE INDUSTRIES Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	61,069	64,673	5.9
Current Liabilities	Rs m	33,751	32,516	-3.7
Long-term Debt	Rs m	98	89	-9.2
Total Liabilities	Rs m	224,309	243,515	8.6
Current assets	Rs m	54,605	54,100	-0.9
Fixed Assets	Rs m	169,705	189,415	11.6
Total Assets	Rs m	224,309	243,515	8.6

EXIDE INDUSTRIES Cash Flow Statement Analysis

• EXIDE INDUSTRIES's cash flow from operating activities (CFO) during FY20 stood at Rs 16 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -11 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs -95 million from the Rs 323 million net cash flows seen during FY19.

EXIDE INDUSTRIES Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-19	Mar-20
Cash Flow from Operating Activities	Rs m	16,868	16,192	-4.0%
Cash Flow from Investing Activities	Rs m	-14,374	-10,969	-
Cash Flow from Financing Activities	Rs m	-2,167	-5,318	-
Net Cash Flow	Rs m	323	-95	-

Current Valuations for EXIDE INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.0, an decline from the EPS of Rs 10.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 131.3, stands at 14.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 12.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Sales per share (Unadj.)	Rs	173.2	170.2
TTM Earnings per share	Rs	10.0	9.0
Diluted earnings per share	Rs	10.0	9.0
Price to Cash Flow	x	15.6	12.7
TTM P/E ratio	x	22.0	14.6
Price / Book Value ratio	x	3.5	2.3
Market Cap	Rs m	211,480	149,388
Dividends per share (Unadj.)	Rs	2.4	4.1

Ratio Analysis for EXIDE INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY20, from 1.6x during FY19. 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 10.0x during FY20, from 11.7x during FY19. 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 11.8% during FY20, from 13.9% during FY20. 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 16.7% during FY20, from 22.3% during FY19. 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 3.6% during FY20, from 4.3% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Current ratio	x	1.6	1.7
Debtors’ Days	Days	3	3
Interest coverage	x	11.7	10.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.3	3.6
Return on equity	%	13.9	11.8
Return on capital employed	%	22.3	16.7

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 218.7 to Rs 131.3, registering a loss of Rs 87.4 or around 40.0%.

Overall, the S&P BSE SENSEX is down 24.2% 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