GABRIEL INDIA 2018-19 Annual Report Analysis

Sun, 31 Mar

GABRIEL INDIA 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.

GABRIEL INDIA Income Statement Analysis

• Operating income during the year rose 16.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.6% in FY19 as against 9.6% in FY18.
• Depreciation charges increased by 7.2% and finance costs increased by 1.6% YoY, respectively.
• Other income grew by 30.6% YoY.
• Net profit for the year grew by 0.8% YoY.
• Net profit margins during the year declined from 5.3% in FY18 to 4.6% in FY19.

GABRIEL INDIA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	17,866	20,765	16.2%
Other income	Rs m	71	92	30.6%
Total Revenues	Rs m	17,937	20,857	16.3%
Gross profit	Rs m	1,713	1,778	3.8%
Depreciation	Rs m	383	411	7.2%
Interest	Rs m	29	29	1.6%
Profit before tax	Rs m	1,372	1,431	4.3%
Tax	Rs m	429	481	12.0%
Profit after tax	Rs m	942	950	0.8%
Gross profit margin	%	9.6	8.6
Effective tax rate	%	31.3	33.6
Net profit margin	%	5.3	4.6

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GABRIEL INDIA Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 3 billion as compared to Rs 3 billion in FY18, thereby witnessing an decrease of -1.1%.
• Long-term debt down at Rs 70 million as compared to Rs 72 million during FY18, a fall of 3.1%.
• Current assets rose 2% and stood at Rs 6 billion, while fixed assets rose 24% and stood at Rs 5 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 11 billion as against Rs 10 billion during FY18, thereby witnessing a growth of 11%.

GABRIEL INDIA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	5,249	5,900	12.4
Current Liabilities	Rs m	3,393	3,356	-1.1
Long-term Debt	Rs m	72	70	-3.1
Total Liabilities	Rs m	9,889	11,005	11.3
Current assets	Rs m	5,613	5,722	1.9
Fixed Assets	Rs m	4,276	5,282	23.5
Total Assets	Rs m	9,889	11,005	11.3

GABRIEL INDIA Cash Flow Statement Analysis

• GABRIEL INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 928 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -749 million, an improvement of 17.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -311 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -132 million from the Rs 140 million net cash flows seen during FY18.

GABRIEL INDIA 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	1,037	928	-10.5%
Cash Flow from Investing Activities	Rs m	-635	-749	-
Cash Flow from Financing Activities	Rs m	-262	-311	-
Net Cash Flow	Rs m	140	-132	-

Current Valuations for GABRIEL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.6, an improvement from the EPS of Rs 6.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 145.2, stands at 22.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 15.0 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	124.4	144.6
TTM Earnings per share	Rs	6.6	6.6
Diluted earnings per share	Rs	6.6	6.6
Price to Cash Flow	x	14.8	15.0
TTM P/E ratio	x	20.9	22.0
Price / Book Value ratio	x	4.7	3.5
Market Cap	Rs m	24,653	20,405
Dividends per share (Unadj.)	Rs	1.4	1.5

Ratio Analysis for GABRIEL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x 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 49.8x during FY19, from 48.5x 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 16.1% during FY19, from 18.0% 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 24.5% during FY19, from 26.3% 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 8.9% during FY19, from 9.8% 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	1.7
Debtors’ Days	Days	57	50
Interest coverage	x	48.5	49.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.8	8.9
Return on equity	%	18.0	16.1
Return on capital employed	%	26.3	24.5

To see how GABRIEL INDIA has performed over the last 5 years, please visit here.

GABRIEL INDIA Share Price Performance

Over the last one year, GABRIEL INDIA share price has moved up from Rs 136.9 to Rs 145.2, registering a gain of Rs 8.4 or around 6.1%.

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

(To know more, check out historical annual results for GABRIEL INDIA and quarterly results for GABRIEL INDIA)

Read: Latest Annual Report Analysis of GABRIEL INDIA