KANSAI NEROLAC 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

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)

Equitymaster requests your view! Post a comment on "KANSAI NEROLAC 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

KANSAI NEROLAC Announces Quarterly Results (1QFY21); Net Profit Down 71.1% (Quarterly Result Update)

Aug 21, 2020 | Updated on Aug 21, 2020

For the quarter ended June 2020, KANSAI NEROLAC has posted a net profit of Rs 427 m (down 71.1% YoY). Sales on the other hand came in at Rs 6 bn (down 59.1% YoY). Read on for a complete analysis of KANSAI NEROLAC's quarterly results.

KANSAI NEROLAC Announces Quarterly Results (4QFY20); Net Profit Down 23.0% (Quarterly Result Update)

May 7, 2020 | Updated on May 7, 2020

For the quarter ended March 2020, KANSAI NEROLAC has posted a net profit of Rs 715 m (down 23.0% YoY). Sales on the other hand came in at Rs 10 bn (down 13.5% YoY). Read on for a complete analysis of KANSAI NEROLAC's quarterly results.

More Views on News

Most Popular

My View on ITC(Fast Profits Daily)

Oct 23, 2020

What do the charts say about ITC?

PSU Banks Will Move Up Again(Profit Hunter)

Oct 27, 2020

My charts tell me PSU banks are set for a rebound.

PSU Stocks Are Looking Positive Now(Fast Profits Daily)

Oct 19, 2020

Has the market changed its opinion on PSUs?

One Cycle that Defines Everything in Markets(Profit Hunter)

Oct 23, 2020

Know this cycle to boost your profits in the market.

Markets are Always Right?(The Honest Truth)

Oct 30, 2020

Ajit Dayal on why you shouldn't let your guard down as an investor.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

TRACK KANSAI NEROLAC

  • Track your investment in KANSAI NEROLAC with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON KANSAI NEROLAC

KANSAI NEROLAC 8-QTR ANALYSIS

COMPARE KANSAI NEROLAC WITH

MARKET STATS