HAVELLS INDIA 2018-19 Annual Report Analysis

Sun, 31 Mar

HAVELLS 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.

HAVELLS INDIA Income Statement Analysis

• Operating income during the year rose 25.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.1% in FY19 as against 13.0% in FY18.
• Depreciation charges increased by 6.3% and finance costs increased by 2.8% YoY, respectively.
• Other income grew by 9.1% YoY.
• Net profit for the year grew by 19.2% YoY.
• Net profit margins during the year declined from 8.2% in FY18 to 7.8% in FY19.

HAVELLS INDIA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	80,238	100,734	25.5%
Other income	Rs m	1,179	1,287	9.1%
Total Revenues	Rs m	81,417	102,021	25.3%
Gross profit	Rs m	10,411	12,230	17.5%
Depreciation	Rs m	1,405	1,494	6.3%
Interest	Rs m	537	553	2.8%
Profit before tax	Rs m	9,648	11,470	18.9%
Tax	Rs m	3,038	3,594	18.3%
Profit after tax	Rs m	6,610	7,876	19.2%
Gross profit margin	%	13.0	12.1
Effective tax rate	%	31.5	31.3
Net profit margin	%	8.2	7.8

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HAVELLS INDIA Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 25 billion as compared to Rs 25 billion in FY18, thereby witnessing an increase of 0.4%.
• Long-term debt down at Rs 405 million as compared to Rs 810 million during FY18, a fall of 50.0%.
• Current assets rose 4% and stood at Rs 38 billion, while fixed assets rose 14% and stood at Rs 33 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 71 billion as against Rs 66 billion during FY18, thereby witnessing a growth of 8%.

HAVELLS INDIA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	37,292	41,973	12.6
Current Liabilities	Rs m	25,301	25,396	0.4
Long-term Debt	Rs m	810	405	-50.0
Total Liabilities	Rs m	66,075	71,484	8.2
Current assets	Rs m	37,065	38,435	3.7
Fixed Assets	Rs m	29,010	33,048	13.9
Total Assets	Rs m	66,075	71,484	8.2

HAVELLS INDIA Cash Flow Statement Analysis

• HAVELLS INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -3 billion, an improvement of 22% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 4 billion from the Rs -3 billion net cash flows seen during FY18.

HAVELLS 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	10,999	5,013	-54.4%
Cash Flow from Investing Activities	Rs m	-9,441	1,883	-
Cash Flow from Financing Activities	Rs m	-4,091	-3,181	-
Net Cash Flow	Rs m	-2,554	3,681	-

Current Valuations for HAVELLS INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.6, an improvement from the EPS of Rs 10.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 771.0, stands at 61.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.5 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 42.2 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	128.4	161.1
TTM Earnings per share	Rs	10.6	12.6
Diluted earnings per share	Rs	10.6	12.6
Price to Cash Flow	x	38.1	42.2
TTM P/E ratio	x	42.9	61.0
Price / Book Value ratio	x	8.6	9.4
Market Cap	Rs m	320,920	395,549
Dividends per share (Unadj.)	Rs	4.0	4.5

Ratio Analysis for HAVELLS INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY19, from 1.5x 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 21.8x during FY19, from 19.0x 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 18.8% during FY19, from 17.7% 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 28.4% during FY19, from 26.7% 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 improved and stood at 11.8% during FY19, from 10.8% 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	1.5	1.5
Debtors’ Days	Days	1	1
Interest coverage	x	19.0	21.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.8	11.8
Return on equity	%	17.7	18.8
Return on capital employed	%	26.7	28.4

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

HAVELLS INDIA Share Price Performance

Over the last one year, HAVELLS INDIA share price has moved up from Rs 487.8 to Rs 771.0, registering a gain of Rs 283.2 or around 58.1%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 23,856.7 (up 0.7%). Over the last one year it has moved up from 22,261.9 to 23,856.7, a gain of 1,595 points (up 7.2%).

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

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

Read: Latest Annual Report Analysis of HAVELLS INDIA