GOODYEAR (I) 2018-19 Annual Report Analysis

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GOODYEAR (I) 2018-19 Annual Report Analysis
Mon, 16 Sep

GOODYEAR (I) 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.

GOODYEAR (I) Income Statement Analysis

  • Operating income during the year fell 88.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 18.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 85.7% in FY19 as against 12.1% in FY18.
  • Depreciation charges increased by 13.5% and finance costs increased by 4.8% YoY, respectively.
  • Other income grew by 2.8% YoY.
  • Net profit for the year declined by 21.5% YoY.
  • Net profit margins during the year grew from 7.6% in FY18 to 44.5% in FY19.

GOODYEAR (I) Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 16,647 1,919 -88.5%
Other income Rs m 367 377 2.8%
Total Revenues Rs m 17,013 2,296 -86.5%
Gross profit Rs m 2,017 1,645 -18.4%
Depreciation Rs m 362 410 13.5%
Interest Rs m 29 30 4.8%
Profit before tax Rs m 1,993 1,581 -20.6%
Tax Rs m 693 561 -19.1%
Profit after tax Rs m 1,300 1,021 -21.5%
Gross profit margin % 12.1 85.7
Effective tax rate % 34.8 35.5
Net profit margin % 7.6 44.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GOODYEAR (I) Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 4 billion as compared to Rs 5 billion in FY18, thereby witnessing an decrease of -6.6%.
  • Current assets rose 1% and stood at Rs 10 billion, while fixed assets rose 11% and stood at Rs 3 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 13 billion as against Rs 13 billion during FY18, thereby witnessing a growth of 3%.

GOODYEAR (I) Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 8,022 8,671 8.1
 
Current Liabilities Rs m 4,654 4,348 -6.6
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 12,976 13,305 2.5
 
Current assets Rs m 9,900 9,951 0.5
Fixed Assets Rs m 2,724 3,012 10.6
Total Assets Rs m 12,976 13,305 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GOODYEAR (I) Cash Flow Statement Analysis

  • GOODYEAR (I)'s cash flow from operating activities (CFO) during FY19 stood at Rs 566 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -356 million, an improvement of 61.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -389 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -179 million from the Rs 1 billion net cash flows seen during FY18.

GOODYEAR (I) 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 1,823 566 -69.0%
Cash Flow from Investing Activities Rs m -220 -356 -
Cash Flow from Financing Activities Rs m -373 -389 -
Net Cash Flow Rs m 1,230 -179 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for GOODYEAR (I)

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 44.2, an decline from the EPS of Rs 56.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 935.5, stands at 20.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 12.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.1 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 721.6 83.2
TTM Earnings per share Rs 56.3 44.2
Diluted earnings per share Rs 56.3 44.2
Price to Cash Flow x 13.0 15.1
TTM P/E ratio x 20.8 20.8
Price / Book Value ratio x 2.9 2.8
Market Cap Rs m 21,582 21,582
Dividends per share (Unadj.) Rs 13.0 13.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for GOODYEAR (I)

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.3x during FY19, from 2.1x 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 53.2x during FY19, from 70.0x 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 11.8% during FY19, from 16.2% 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 18.6% during FY19, from 25.2% 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 7.9% during FY19, from 10.2% 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 2.1 2.3
Debtors’ Days Days 46 463
Interest coverage x 70.0 53.2
Debt to equity ratio x 0.0 0.0
Return on assets % 10.2 7.9
Return on equity % 16.2 11.8
Return on capital employed % 25.2 18.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how GOODYEAR (I) has performed over the last 5 years, please visit here.

GOODYEAR (I) Share Price Performance

Over the last one year, GOODYEAR (I) share price has moved down from Rs 997.5 to Rs 935.5, registering a loss of Rs 62.0 or around 6.2%.

Overall, the S&P BSE SENSEX is down 2.4% over the year.

(To know more, check out historical annual results for GOODYEAR (I) and quarterly results for GOODYEAR (I))

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Related Views on News

GOODYEAR (I) Announces Quarterly Results (3QFY20); Net Profit Down 45.2% (Quarterly Result Update)

Feb 14, 2020 | Updated on Feb 14, 2020

For the quarter ended December 2019, GOODYEAR (I) has posted a net profit of Rs 119 m (down 45.2% YoY). Sales on the other hand came in at Rs 4 bn (down 8.1% YoY). Read on for a complete analysis of GOODYEAR (I)'s quarterly results.

GOODYEAR (I) Announces Quarterly Results (1QFY20); Net Profit Up 5.9% (Quarterly Result Update)

Aug 14, 2019 | Updated on Aug 14, 2019

For the quarter ended June 2019, GOODYEAR (I) has posted a net profit of Rs 262 m (up 5.9% YoY). Sales on the other hand came in at Rs 5 bn (down 8.3% YoY). Read on for a complete analysis of GOODYEAR (I)'s quarterly results.

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