GREAVES COTTON 2018-19 Annual Report Analysis

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GREAVES COTTON 2018-19 Annual Report Analysis
Mon, 23 Sep

GREAVES COTTON 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.

GREAVES COTTON Income Statement Analysis

  • Operating income during the year rose 12.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 6.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.5% in FY19 as against 14.2% in FY18.
  • Depreciation charges decreased by 0.5% and finance costs increased by 398.8% YoY, respectively.
  • Other income declined by 8.4% YoY.
  • Net profit for the year declined by 19.6% YoY.
  • Net profit margins during the year declined from 11.0% in FY18 to 7.9% in FY19.

GREAVES COTTON Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 17,921 20,153 12.5%
Other income Rs m 456 418 -8.4%
Total Revenues Rs m 18,377 20,571 11.9%
Gross profit Rs m 2,553 2,722 6.6%
Depreciation Rs m 524 522 -0.5%
Interest Rs m 8 40 398.8%
Profit before tax Rs m 2,477 2,578 4.1%
Tax Rs m 930 773 -16.9%
Profit after tax Rs m 2,022 1,626 -19.6%
Gross profit margin % 14.2 13.5
Effective tax rate % 37.5 30.0
Net profit margin % 11.0 7.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GREAVES COTTON Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 4 billion as compared to Rs 4 billion in FY18, thereby witnessing an increase of 20.3%.
  • Long-term debt stood at Rs 53 million as compared to Rs 0 million during FY18, a fall of 0.0%.
  • Current assets rose 7% and stood at Rs 8 billion, while fixed assets rose 34% and stood at Rs 4 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 15 billion as against Rs 13 billion during FY18, thereby witnessing a growth of 8%.

GREAVES COTTON Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 9,650 9,691 0.4
 
Current Liabilities Rs m 3,537 4,257 20.3
Long-term Debt Rs m 0 53 0.0
Total Liabilities Rs m 13,462 14,557 8.1
 
Current assets Rs m 7,076 7,562 6.9
Fixed Assets Rs m 3,054 4,107 34.5
Total Assets Rs m 13,462 14,557 8.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GREAVES COTTON Cash Flow Statement Analysis

  • GREAVES COTTON's cash flow from operating activities (CFO) during FY19 stood at Rs 1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 355 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 100 million from the Rs 199 million net cash flows seen during FY18.

GREAVES COTTON 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 2,796 1,453 -48.0%
Cash Flow from Investing Activities Rs m -972 355 -
Cash Flow from Financing Activities Rs m -1,625 -1,738 -
Net Cash Flow Rs m 199 100 -49.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for GREAVES COTTON

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.7, an decline from the EPS of Rs 8.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 150.1, stands at 21.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 17.1 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 73.4 82.5
TTM Earnings per share Rs 8.3 6.7
Diluted earnings per share Rs 8.3 6.7
Price to Cash Flow x 14.4 17.1
TTM P/E ratio x 21.9 21.9
Price / Book Value ratio x 3.7 3.3
Market Cap Rs m 36,656 36,656
Dividends per share (Unadj.) Rs 5.5 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for GREAVES COTTON

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY19, from 2.0x 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 64.8x during FY19, from 306.8x 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 16.8% during FY19, from 21.0% 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 25.0% during FY19, from 30.7% 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 11.4% during FY19, from 15.1% 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 2.0 1.8
Debtors’ Days Days 51 62
Interest coverage x 306.8 64.8
Debt to equity ratio x 0.0 0.0
Return on assets % 15.1 11.4
Return on equity % 21.0 16.8
Return on capital employed % 30.7 25.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how GREAVES COTTON has performed over the last 5 years, please visit here.

GREAVES COTTON Share Price Performance

Over the last one year, GREAVES COTTON share price has moved up from Rs 146.9 to Rs 150.1, registering a gain of Rs 3.2 or around 2.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 19,035.1 (up 5.3%). Over the last one year it has moved up from 18,058.2 to 19,035.1, a gain of 977 points (up 5.4%).

Overall, the S&P BSE SENSEX is up 5.3% over the year.

(To know more, check out historical annual results for GREAVES COTTON and quarterly results for GREAVES COTTON)

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Nov 8, 2019 | Updated on Nov 8, 2019

For the quarter ended September 2019, GREAVES COTTON has posted a net profit of Rs 453 m (down 8.3% YoY). Sales on the other hand came in at Rs 5 bn (down 1.0% YoY). Read on for a complete analysis of GREAVES COTTON's quarterly results.

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