GUJARAT AMBUJA 2018-19 Annual Report Analysis

Sun, 31 Mar

GUJARAT AMBUJA 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 AMBUJA Income Statement Analysis

• Operating income during the year rose 20.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.3% in FY19 as against 9.5% in FY18.
• Depreciation charges increased by 25.4% and finance costs increased by 4.9% YoY, respectively.
• Other income grew by 27.8% YoY.
• Net profit for the year grew by 10.2% YoY.
• Net profit margins during the year declined from 5.4% in FY18 to 4.9% in FY19.

GUJARAT AMBUJA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	33,522	40,214	20.0%
Other income	Rs m	91	116	27.8%
Total Revenues	Rs m	33,613	40,331	20.0%
Gross profit	Rs m	3,173	3,724	17.4%
Depreciation	Rs m	763	957	25.4%
Interest	Rs m	179	188	4.9%
Profit before tax	Rs m	2,322	2,696	16.1%
Tax	Rs m	523	714	36.6%
Profit after tax	Rs m	1,799	1,982	10.2%
Gross profit margin	%	9.5	9.3
Effective tax rate	%	22.5	26.5
Net profit margin	%	5.4	4.9

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GUJARAT AMBUJA Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 5 billion as compared to Rs 8 billion in FY18, thereby witnessing an decrease of -44.4%.
• Long-term debt down at Rs 8 million as compared to Rs 72 million during FY18, a fall of 89.2%.
• Current assets fell 18% and stood at Rs 8 billion, while fixed assets rose 0% and stood at Rs 9 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 17 billion as against Rs 19 billion during FY18, thereby witnessing a fall of 9%.

GUJARAT AMBUJA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	10,224	12,082	18.2
Current Liabilities	Rs m	8,135	4,527	-44.4
Long-term Debt	Rs m	72	8	-89.2
Total Liabilities	Rs m	18,948	17,152	-9.5
Current assets	Rs m	10,247	8,442	-17.6
Fixed Assets	Rs m	8,701	8,710	0.1
Total Assets	Rs m	18,948	17,152	-9.5

GUJARAT AMBUJA Cash Flow Statement Analysis

• GUJARAT AMBUJA's cash flow from operating activities (CFO) during FY19 stood at Rs 6 billion, an improvement of 313.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 79 million from the Rs 1 million net cash flows seen during FY18.

GUJARAT AMBUJA 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	1,385	5,728	313.7%
Cash Flow from Investing Activities	Rs m	-1,255	-1,103	-
Cash Flow from Financing Activities	Rs m	-129	-4,546	-
Net Cash Flow	Rs m	1	79	7,090.9%

Current Valuations for GUJARAT AMBUJA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.3, an improvement from the EPS of Rs 15.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 219.2, stands at 25.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 9.4 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	292.3	350.7
TTM Earnings per share	Rs	15.7	17.3
Diluted earnings per share	Rs	7.8	8.6
Price to Cash Flow	x	20.6	9.4
TTM P/E ratio	x	29.3	25.4
Price / Book Value ratio	x	2.2	2.3
Market Cap	Rs m	22,162	27,626
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for GUJARAT AMBUJA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY19, from 1.3x 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 15.3x during FY19, from 13.9x 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 16.4% during FY19, from 17.6% 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 23.9% during FY19, from 24.3% 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 improved and stood at 12.7% during FY19, from 10.4% 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	1.3	1.9
Debtors’ Days	Days	2	2
Interest coverage	x	13.9	15.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.4	12.7
Return on equity	%	17.6	16.4
Return on capital employed	%	24.3	23.9

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

GUJARAT AMBUJA Share Price Performance

Over the last one year, GUJARAT AMBUJA share price has moved down from Rs 230.2 to Rs 219.2, registering a loss of Rs 11.0 or around 4.8%.

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

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

Read: Latest Annual Report Analysis of GUJARAT AMBUJA