DISA INDIA 2018-19 Annual Report Analysis

Sun, 31 Mar

DISA INDIA 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.

DISA INDIA Income Statement Analysis

• Operating income during the year rose 25.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 57.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.5% in FY19 as against 11.6% in FY18.
• Depreciation charges increased by 8.8% and finance costs increased by 207.7% YoY, respectively.
• Other income grew by 37.1% YoY.
• Net profit for the year grew by 71.8% YoY.
• Net profit margins during the year grew from 8.3% in FY18 to 11.4% in FY19.

DISA INDIA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	2,014	2,517	25.0%
Other income	Rs m	49	68	37.1%
Total Revenues	Rs m	2,063	2,584	25.3%
Gross profit	Rs m	233	366	57.2%
Depreciation	Rs m	22	24	8.8%
Interest	Rs m	1	4	207.7%
Profit before tax	Rs m	259	406	56.6%
Tax	Rs m	93	120	29.3%
Profit after tax	Rs m	167	286	71.8%
Gross profit margin	%	11.6	14.5
Effective tax rate	%	35.7	29.5
Net profit margin	%	8.3	11.4

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DISA INDIA Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 2 billion as compared to Rs 2 billion in FY18, thereby witnessing an decrease of -21.3%.
• Current assets fell 5% and stood at Rs 3 billion, while fixed assets fell 4% and stood at Rs 252 million in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 3 billion as against Rs 3 billion during FY18, thereby witnessing a fall of 5%.

DISA INDIA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	1,092	1,374	25.9
Current Liabilities	Rs m	2,052	1,615	-21.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,141	2,985	-5.0
Current assets	Rs m	2,878	2,733	-5.0
Fixed Assets	Rs m	264	252	-4.4
Total Assets	Rs m	3,141	2,985	-5.0

DISA INDIA Cash Flow Statement Analysis

• DISA INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 163 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -120 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -7 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 36 million from the Rs 40 million net cash flows seen during FY18.

DISA INDIA 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	243	163	-32.8%
Cash Flow from Investing Activities	Rs m	-197	-120	-
Cash Flow from Financing Activities	Rs m	-6	-7	-
Net Cash Flow	Rs m	40	36	-9.0%

Current Valuations for DISA INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 197.3, an improvement from the EPS of Rs 114.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,220.0, stands at 32.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 27.9 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	1,388.8	1,735.7
TTM Earnings per share	Rs	114.8	197.3
Diluted earnings per share	Rs	114.5	196.7
Price to Cash Flow	x	46.4	27.9
TTM P/E ratio	x	53.8	32.6
Price / Book Value ratio	x	8.1	6.3
Market Cap	Rs m	8,806	8,645
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for DISA INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY19, from 1.4x 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 102.5x during FY19, from 200.3x 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 20.8% during FY19, from 15.3% 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 29.8% during FY19, from 23.9% 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 9.7% during FY19, from 5.3% 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	1.4	1.7
Debtors’ Days	Days	26	30
Interest coverage	x	200.3	102.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.3	9.7
Return on equity	%	15.3	20.8
Return on capital employed	%	23.9	29.8

To see how DISA INDIA has performed over the last 5 years, please visit here.

DISA INDIA Share Price Performance

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(To know more, check out historical annual results for DISA INDIA and quarterly results for DISA INDIA)

Read: Latest Annual Report Analysis of DISA INDIA