EMAMI LTD 2018-19 Annual Report Analysis

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EMAMI LTD 2018-19 Annual Report Analysis
Mon, 30 Sep

EMAMI LTD 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.

EMAMI LTD Income Statement Analysis

  • Operating income during the year rose 6.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 0.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.9% in FY19 as against 28.4% in FY18.
  • Depreciation charges increased by 4.6% and finance costs decreased by 37.6% YoY, respectively.
  • Other income grew by 87.6% YoY.
  • Net profit for the year declined by 1.2% YoY.
  • Net profit margins during the year declined from 12.0% in FY18 to 11.1% in FY19.

EMAMI LTD Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 25,305 26,929 6.4%
Other income Rs m 195 366 87.6%
Total Revenues Rs m 25,500 27,295 7.0%
Gross profit Rs m 7,182 7,233 0.7%
Depreciation Rs m 3,109 3,253 4.6%
Interest Rs m 343 214 -37.6%
Profit before tax Rs m 3,926 4,132 5.3%
Tax Rs m 863 1,009 17.0%
Profit after tax Rs m 3,063 3,025 -1.2%
Gross profit margin % 28.4 26.9
Effective tax rate % 22.0 24.4
Net profit margin % 12.0 11.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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EMAMI LTD Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 7 billion as compared to Rs 7 billion in FY18, thereby witnessing an decrease of -4.8%.
  • Current assets rose 21% and stood at Rs 8 billion, while fixed assets fell 6% and stood at Rs 17 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 28 billion as against Rs 28 billion during FY18, thereby witnessing a growth of 1%.

EMAMI LTD Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 20,136 20,761 3.1
 
Current Liabilities Rs m 7,139 6,799 -4.8
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 28,007 28,224 0.8
 
Current assets Rs m 7,008 8,493 21.2
Fixed Assets Rs m 18,325 17,164 -6.3
Total Assets Rs m 28,007 28,224 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



EMAMI LTD Cash Flow Statement Analysis

  • EMAMI LTD's cash flow from operating activities (CFO) during FY19 stood at Rs 6 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -234 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 1 billion from the Rs -122 million net cash flows seen during FY18.

EMAMI LTD 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 5,878 5,537 -5.8%
Cash Flow from Investing Activities Rs m -2,791 -234 -
Cash Flow from Financing Activities Rs m -3,237 -4,277 -
Net Cash Flow Rs m -122 1,003 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for EMAMI LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.7, an decline from the EPS of Rs 13.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 316.8, stands at 22.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 16.9 times, while the price to sales ratio stands at 13.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.5 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 111.5 59.3
TTM Earnings per share Rs 13.5 6.7
Diluted earnings per share Rs 13.5 13.3
Price to Cash Flow x 11.7 11.5
TTM P/E ratio x 22.7 22.7
Price / Book Value ratio x 13.7 16.9
Market Cap Rs m 71,904 71,903
Dividends per share (Unadj.) Rs 8.4 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for EMAMI LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during FY19, from 1.0x 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 improved and stood at 20.3x during FY19, from 12.4x 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 14.6% during FY19, from 15.2% 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 20.5% during FY19, from 21.2% 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 11.5% during FY19, from 12.2% 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 1.0 1.2
Debtors’ Days Days 22 29
Interest coverage x 12.4 20.3
Debt to equity ratio x 0.0 0.0
Return on assets % 12.2 11.5
Return on equity % 15.2 14.6
Return on capital employed % 21.2 20.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how EMAMI LTD has performed over the last 5 years, please visit here.

EMAMI LTD Share Price Performance

Over the last one year, EMAMI LTD share price has moved down from Rs 493.4 to Rs 316.8, registering a loss of Rs 176.6 or around 35.8%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,711.6 (down 0.2%). Over the last one year it has moved up from 11,502.8 to 11,711.6, a gain of 209 points (up 1.8%).

Overall, the S&P BSE SENSEX is up 6.0% over the year.

(To know more, check out historical annual results for EMAMI LTD and quarterly results for EMAMI LTD)

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Aug 18, 2020 | Updated on Aug 18, 2020

For the quarter ended June 2020, EMAMI LTD has posted a net profit of Rs 407 m (up 2.0% YoY). Sales on the other hand came in at Rs 5 bn (down 25.8% YoY). Read on for a complete analysis of EMAMI LTD's quarterly results.

EMAMI LTD Announces Quarterly Results (4QFY20); Net Profit Down 54.9% (Quarterly Result Update)

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