KRBL 2018-19 Annual Report Analysis

Sun, 31 Mar

KRBL 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.

KRBL Income Statement Analysis

• Operating income during the year rose 27.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.6% in FY19 as against 23.9% in FY18.
• Depreciation charges decreased by 4.9% and finance costs decreased by 2.0% YoY, respectively.
• Other income declined by 14.9% YoY.
• Net profit for the year grew by 15.8% YoY.
• Net profit margins during the year declined from 13.4% in FY18 to 12.2% in FY19.

KRBL Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	32,449	41,205	27.0%
Other income	Rs m	178	152	-14.9%
Total Revenues	Rs m	32,627	41,356	26.8%
Gross profit	Rs m	7,739	8,499	9.8%
Depreciation	Rs m	678	645	-4.9%
Interest	Rs m	690	676	-2.0%
Profit before tax	Rs m	6,550	7,330	11.9%
Tax	Rs m	2,206	2,300	4.3%
Profit after tax	Rs m	4,344	5,030	15.8%
Gross profit margin	%	23.9	20.6
Effective tax rate	%	33.7	31.4
Net profit margin	%	13.4	12.2

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

KRBL Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 17 billion as compared to Rs 14 billion in FY18, thereby witnessing an increase of 24.9%.
• Long-term debt down at Rs 332 million as compared to Rs 520 million during FY18, a fall of 36.0%.
• Current assets rose 26% and stood at Rs 36 billion, while fixed assets rose 4% and stood at Rs 11 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 46 billion as against Rs 39 billion during FY18, thereby witnessing a growth of 20%.

KRBL Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	22,879	27,267	19.2
Current Liabilities	Rs m	13,797	17,229	24.9
Long-term Debt	Rs m	520	332	-36.0
Total Liabilities	Rs m	38,575	46,361	20.2
Current assets	Rs m	28,339	35,736	26.1
Fixed Assets	Rs m	10,237	10,626	3.8
Total Assets	Rs m	38,575	46,361	20.2

KRBL Cash Flow Statement Analysis

• KRBL'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 202 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 595 million, an improvement of 141% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -352 million from the Rs 368 million net cash flows seen during FY18.

KRBL 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	608	-1,149	-
Cash Flow from Investing Activities	Rs m	-487	202	-
Cash Flow from Financing Activities	Rs m	247	595	141.0%
Net Cash Flow	Rs m	368	-352	-

Current Valuations for KRBL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.4, an improvement from the EPS of Rs 18.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 338.0, stands at 15.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 17.5 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	137.9	175.0
TTM Earnings per share	Rs	18.5	21.4
Diluted earnings per share	Rs	18.5	21.4
Price to Cash Flow	x	20.4	17.5
TTM P/E ratio	x	23.6	15.8
Price / Book Value ratio	x	5.4	3.6
Market Cap	Rs m	122,874	99,064
Dividends per share (Unadj.)	Rs	2.3	2.5

Ratio Analysis for KRBL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY19, from 2.1x 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 11.8x during FY19, from 10.5x 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 18.4% during FY19, from 19.0% 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 29.0% during FY19, from 30.9% 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 declined and down at 12.3% during FY19, from 13.0% 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	2.1	2.1
Debtors’ Days	Days	277	352
Interest coverage	x	10.5	11.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.0	12.3
Return on equity	%	19.0	18.4
Return on capital employed	%	30.9	29.0

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

KRBL Share Price Performance

Over the last one year, KRBL share price has moved down from Rs 434.8 to Rs 338.0, registering a loss of Rs 96.8 or around 22.3%.

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

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

Read: Latest Annual Report Analysis of KRBL