GUJARAT ALKALIES 2018-19 Annual Report Analysis

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GUJARAT ALKALIES 2018-19 Annual Report Analysis
Tue, 24 Sep

GUJARAT ALKALIES 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.

GUJARAT ALKALIES Income Statement Analysis

  • Operating income during the year rose 28.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 42.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 35.3% in FY19 as against 32.0% in FY18.
  • Depreciation charges increased by 9.9% and finance costs increased by 40.5% YoY, respectively.
  • Other income declined by 42.5% YoY.
  • Net profit for the year grew by 29.1% YoY.
  • Net profit margins during the year grew from 20.9% in FY18 to 21.4% in FY19.

GUJARAT ALKALIES Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 24,545 31,614 28.8%
Other income Rs m 1,057 608 -42.5%
Total Revenues Rs m 25,603 32,222 25.9%
Gross profit Rs m 7,859 11,164 42.1%
Depreciation Rs m 1,273 1,400 9.9%
Interest Rs m 149 209 40.5%
Profit before tax Rs m 7,494 10,163 35.6%
Tax Rs m 2,149 3,261 51.7%
Profit after tax Rs m 5,345 6,902 29.1%
Gross profit margin % 32.0 35.3
Effective tax rate % 28.7 32.1
Net profit margin % 20.9 21.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GUJARAT ALKALIES Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 5 billion as compared to Rs 5 billion in FY18, thereby witnessing an increase of 6.3%.
  • Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY18, a fall of 19.7%.
  • Current assets rose 26% and stood at Rs 16 billion, while fixed assets rose 11% and stood at Rs 26 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 55 billion as against Rs 50 billion during FY18, thereby witnessing a growth of 11%.

GUJARAT ALKALIES Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 38,210 42,956 12.4
 
Current Liabilities Rs m 4,780 5,080 6.3
Long-term Debt Rs m 2,298 1,846 -19.7
Total Liabilities Rs m 49,703 55,310 11.3
 
Current assets Rs m 12,750 16,101 26.3
Fixed Assets Rs m 23,561 26,077 10.7
Total Assets Rs m 49,703 55,310 11.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GUJARAT ALKALIES Cash Flow Statement Analysis

  • GUJARAT ALKALIES's cash flow from operating activities (CFO) during FY19 stood at Rs 8 billion, an improvement of 63.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -6 billion, an improvement of 47.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 1 billion from the Rs 28 million net cash flows seen during FY18.

GUJARAT ALKALIES 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 5,139 8,378 63.0%
Cash Flow from Investing Activities Rs m -3,947 -5,828 -
Cash Flow from Financing Activities Rs m -1,163 -1,358 -
Net Cash Flow Rs m 28 1,215 4,193.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for GUJARAT ALKALIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 94.0, an improvement from the EPS of Rs 72.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 480.2, stands at 5.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.2 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 334.2 430.5
TTM Earnings per share Rs 72.8 94.0
Diluted earnings per share Rs 72.8 94.0
Price to Cash Flow x 5.3 4.2
TTM P/E ratio x 5.3 5.3
Price / Book Value ratio x 1.3 1.0
Market Cap Rs m 35,262 35,262
Dividends per share (Unadj.) Rs 6.5 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for GUJARAT ALKALIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.2x during FY19, from 2.7x 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 deteriorated and stood at 49.5x during FY19, from 51.3x 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 16.1% during FY19, from 14.0% 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 improved and stood at 23.2% during FY19, from 18.9% 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 12.9% during FY19, from 11.1% 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 2.7 3.2
Debtors’ Days Days 60 56
Interest coverage x 51.3 49.5
Debt to equity ratio x 0.1 0.0
Return on assets % 11.1 12.9
Return on equity % 14.0 16.1
Return on capital employed % 18.9 23.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how GUJARAT ALKALIES has performed over the last 5 years, please visit here.

GUJARAT ALKALIES Share Price Performance

Over the last one year, GUJARAT ALKALIES share price has moved down from Rs 572.1 to Rs 480.2, registering a loss of Rs 91.9 or around 16.1%.

Overall, the S&P BSE SENSEX is up 8.0% over the year.

(To know more, check out historical annual results for GUJARAT ALKALIES and quarterly results for GUJARAT ALKALIES)

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