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KANSAI NEROLAC 2018-19 Annual Report Analysis

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KANSAI NEROLAC 2018-19 Annual Report Analysis
Thu, 30 May

KANSAI NEROLAC 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.

KANSAI NEROLAC Income Statement Analysis

  • Operating income during the year rose 16.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 5.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.9% in FY19 as against 17.0% in FY18.
  • Depreciation charges increased by 37.9% and finance costs increased by 1328.6% YoY, respectively.
  • Other income declined by 14.7% YoY.
  • Net profit for the year declined by 12.9% YoY.
  • Net profit margins during the year declined from 10.9% in FY18 to 8.2% in FY19.

KANSAI NEROLAC Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 46,581 54,243 16.4%
Other income Rs m 709 605 -14.7%
Total Revenues Rs m 47,290 54,848 16.0%
Gross profit Rs m 7,939 7,526 -5.2%
Depreciation Rs m 771 1,063 37.9%
Interest Rs m 7 100 1,328.6%
Profit before tax Rs m 7,870 6,968 -11.5%
Tax Rs m 2,732 2,491 -8.8%
Profit after tax Rs m 5,138 4,477 -12.9%
Gross profit margin % 17.0 13.9
Effective tax rate % 34.7 35.7
Net profit margin % 10.9 8.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



KANSAI NEROLAC Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 10 billion as compared to Rs 9 billion in FY18, thereby witnessing an increase of 6.8%.
  • Long-term debt down at Rs 44 million as compared to Rs 97 million during FY18, a fall of 55.2%.
  • Current assets fell 10% and stood at Rs 23 billion, while fixed assets rose 29% and stood at Rs 18 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 45 billion as against Rs 41 billion during FY18, thereby witnessing a growth of 9%.

KANSAI NEROLAC Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 31,323 34,163 9.1
 
Current Liabilities Rs m 8,900 9,504 6.8
Long-term Debt Rs m 97 44 -55.2
Total Liabilities Rs m 41,299 45,179 9.4
 
Current assets Rs m 25,850 23,204 -10.2
Fixed Assets Rs m 13,815 17,814 28.9
Total Assets Rs m 41,299 45,179 9.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



KANSAI NEROLAC Cash Flow Statement Analysis

  • KANSAI NEROLAC's cash flow from operating activities (CFO) during FY19 stood at Rs 999 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 885 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -345 million from the Rs 57 million net cash flows seen during FY18.

KANSAI NEROLAC 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 3,600 999 -72.2%
Cash Flow from Investing Activities Rs m -1,627 885 -
Cash Flow from Financing Activities Rs m -1,916 -2,229 -
Net Cash Flow Rs m 57 -345 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for KANSAI NEROLAC

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.3, an decline from the EPS of Rs 9.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 440.3, stands at 50.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.0 times, while the price to sales ratio stands at 4.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 42.8 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 86.4 100.7
TTM Earnings per share Rs 9.5 8.3
Diluted earnings per share Rs 9.5 8.3
Price to Cash Flow x 40.2 42.8
TTM P/E ratio x 50.8 50.8
Price / Book Value ratio x 8.4 7.0
Market Cap Rs m 237,251 237,295
Dividends per share (Unadj.) Rs 2.6 2.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for KANSAI NEROLAC

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY19, from 2.9x 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 70.7x during FY19, from 1,125.3x 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 declined and down at 13.1% during FY19, from 16.4% 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 20.7% during FY19, from 25.1% 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 10.1% during FY19, from 12.5% 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 2.9 2.4
Debtors’ Days Days 55 51
Interest coverage x 1,125.3 70.7
Debt to equity ratio x 0.0 0.0
Return on assets % 12.5 10.1
Return on equity % 16.4 13.1
Return on capital employed % 25.1 20.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how KANSAI NEROLAC has performed over the last 5 years, please visit here.

KANSAI NEROLAC Share Price Performance

Over the last one year, KANSAI NEROLAC share price has moved up from Rs 493.1 to Rs 440.3, registering a loss of Rs 52.9 or around 10.7%.

Overall, the S&P BSE SENSEX is up 14.0% over the year.

(To know more, check out historical annual results for KANSAI NEROLAC and quarterly results for KANSAI NEROLAC)

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Related Views on News

KANSAI NEROLAC Announces Quarterly Results (4QFY19); Net Profit Down 12.3% (Quarterly Result Update)

May 3, 2019 | Updated on May 3, 2019

For the quarter ended March 2019, KANSAI NEROLAC has posted a net profit of Rs 928 m (down 12.3% YoY). Sales on the other hand came in at Rs 11 bn (up 3.5% YoY). Read on for a complete analysis of KANSAI NEROLAC's quarterly results.

KANSAI NEROLAC Announces Quarterly Results (3QFY19); Net Profit Down 9.9% (Quarterly Result Update)

Jan 30, 2019 | Updated on Jan 30, 2019

For the quarter ended December 2018, KANSAI NEROLAC has posted a net profit of Rs 1 bn (down 9.9% YoY). Sales on the other hand came in at Rs 13 bn (up 17.3% YoY). Read on for a complete analysis of KANSAI NEROLAC's quarterly results.

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