HERITAGE FOOD 2018-19 Annual Report Analysis

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HERITAGE FOOD 2018-19 Annual Report Analysis
Mon, 16 Sep

HERITAGE FOOD 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.

HERITAGE FOOD Income Statement Analysis

  • Operating income during the year rose 6.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 33.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.4% in FY19 as against 5.8% in FY18.
  • Depreciation charges increased by 18.1% and finance costs increased by 17.8% YoY, respectively.
  • Other income grew by 17.6% YoY.
  • Net profit for the year grew by 32.2% YoY.
  • Net profit margins during the year grew from 2.6% in FY18 to 3.3% in FY19.

HERITAGE FOOD Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 23,731 25,148 6.0%
Other income Rs m 77 90 17.6%
Total Revenues Rs m 23,808 25,238 6.0%
Gross profit Rs m 1,383 1,850 33.8%
Depreciation Rs m 378 447 18.1%
Interest Rs m 182 215 17.8%
Profit before tax Rs m 899 1,279 42.3%
Tax Rs m 271 447 64.7%
Profit after tax Rs m 627 829 32.2%
Gross profit margin % 5.8 7.4
Effective tax rate % 30.2 34.9
Net profit margin % 2.6 3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HERITAGE FOOD Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 3 billion as compared to Rs 3 billion in FY18, thereby witnessing an decrease of -0.1%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY18, a growth of 17.0%.
  • Current assets rose 8% and stood at Rs 3 billion, while fixed assets rose 19% and stood at Rs 5 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 16 billion as against Rs 17 billion during FY18, thereby witnessing a fall of 4%.

HERITAGE FOOD Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 7,777 8,026 3.2
 
Current Liabilities Rs m 3,259 3,256 -0.1
Long-term Debt Rs m 1,423 1,666 17.0
Total Liabilities Rs m 17,066 16,345 -4.2
 
Current assets Rs m 2,540 2,749 8.2
Fixed Assets Rs m 4,424 5,260 18.9
Total Assets Rs m 17,066 16,345 -4.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HERITAGE FOOD Cash Flow Statement Analysis

  • HERITAGE FOOD's cash flow from operating activities (CFO) during FY19 stood at Rs 1 billion, an improvement of 22.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -33 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 115 million from the Rs -234 million net cash flows seen during FY18.

HERITAGE FOOD 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 1,212 1,480 22.1%
Cash Flow from Investing Activities Rs m -2,000 -1,331 -
Cash Flow from Financing Activities Rs m 555 -33 -
Net Cash Flow Rs m -234 115 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HERITAGE FOOD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.7, an improvement from the EPS of Rs 27.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 378.0, stands at 21.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.7 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 1,022.9 1,083.9
TTM Earnings per share Rs 27.0 35.7
Diluted earnings per share Rs 13.5 17.9
Price to Cash Flow x 8.7 13.7
TTM P/E ratio x 10.9 21.7
Price / Book Value ratio x 2.1 1.7
Market Cap Rs m 8,770 17,538
Dividends per share (Unadj.) Rs 2.0 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for HERITAGE FOOD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.8x during FY19, from 0.8x 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 7.0x during FY19, from 5.9x 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 10.3% during FY19, from 8.1% 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 15.4% during FY19, from 11.7% 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 6.4% during FY19, from 4.7% 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 0.8 0.8
Debtors’ Days Days 2 6
Interest coverage x 5.9 7.0
Debt to equity ratio x 0.2 0.2
Return on assets % 4.7 6.4
Return on equity % 8.1 10.3
Return on capital employed % 11.7 15.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how HERITAGE FOOD has performed over the last 5 years, please visit here.

HERITAGE FOOD Share Price Performance

Over the last one year, HERITAGE FOOD share price has moved down from Rs 574.7 to Rs 378.0, registering a loss of Rs 196.7 or around 34.2%.

Overall, the S&P BSE SENSEX is down 2.5% over the year.

(To know more, check out historical annual results for HERITAGE FOOD and quarterly results for HERITAGE FOOD)

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