KAJARIA CERAMICS 2018-19 Annual Report Analysis

Sun, 31 Mar

KAJARIA CERAMICS 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.

KAJARIA CERAMICS Income Statement Analysis

• Operating income during the year rose 12.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.0% in FY19 as against 17.3% in FY18.
• Depreciation charges increased by 0.6% and finance costs decreased by 35.3% YoY, respectively.
• Other income grew by 66.3% YoY.
• Net profit for the year grew by 0.1% YoY.
• Net profit margins during the year declined from 8.7% in FY18 to 7.7% in FY19.

KAJARIA CERAMICS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	26,387	29,562	12.0%
Other income	Rs m	108	180	66.3%
Total Revenues	Rs m	26,495	29,742	12.3%
Gross profit	Rs m	4,571	4,447	-2.7%
Depreciation	Rs m	885	891	0.6%
Interest	Rs m	241	156	-35.3%
Profit before tax	Rs m	3,553	3,580	0.8%
Tax	Rs m	1,267	1,293	2.0%
Profit after tax	Rs m	2,286	2,288	0.1%
Gross profit margin	%	17.3	15.0
Effective tax rate	%	35.7	36.1
Net profit margin	%	8.7	7.7

For You: Midcap Stocks Research at Less than Its Launch Price

KAJARIA CERAMICS Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 6 billion as compared to Rs 5 billion in FY18, thereby witnessing an increase of 7.4%.
• Long-term debt down at Rs 315 million as compared to Rs 594 million during FY18, a fall of 47.1%.
• Current assets rose 23% and stood at Rs 12 billion, while fixed assets rose 1% and stood at Rs 12 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 24 billion as against Rs 21 billion during FY18, thereby witnessing a growth of 11%.

KAJARIA CERAMICS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	13,461	15,698	16.6
Current Liabilities	Rs m	5,461	5,866	7.4
Long-term Debt	Rs m	594	315	-47.1
Total Liabilities	Rs m	21,403	23,719	10.8
Current assets	Rs m	9,514	11,712	23.1
Fixed Assets	Rs m	11,858	11,988	1.1
Total Assets	Rs m	21,403	23,719	10.8

KAJARIA CERAMICS Cash Flow Statement Analysis

• KAJARIA CERAMICS's cash flow from operating activities (CFO) during FY19 stood at Rs 3 billion, an improvement of 33.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion, an improvement of 90.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -576 million from the Rs 298 million net cash flows seen during FY18.

KAJARIA CERAMICS 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	2,382	3,174	33.2%
Cash Flow from Investing Activities	Rs m	-1,368	-2,609	-
Cash Flow from Financing Activities	Rs m	-718	-1,141	-
Net Cash Flow	Rs m	298	-576	-

Current Valuations for KAJARIA CERAMICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.4, an improvement from the EPS of Rs 14.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 590.7, stands at 40.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 22.9 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	166.0	186.0
TTM Earnings per share	Rs	14.4	14.4
Diluted earnings per share	Rs	14.4	14.4
Price to Cash Flow	x	28.5	22.9
TTM P/E ratio	x	37.8	40.2
Price / Book Value ratio	x	7.8	4.6
Market Cap	Rs m	105,114	72,635
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for KAJARIA CERAMICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY19, from 1.7x 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 24.0x during FY19, from 15.7x 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 17.0% 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 23.3% during FY19, from 27.0% 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 10.3% during FY19, from 11.8% 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	1.7	2.0
Debtors’ Days	Days	6	6
Interest coverage	x	15.7	24.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.8	10.3
Return on equity	%	17.0	14.6
Return on capital employed	%	27.0	23.3

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

KAJARIA CERAMICS Share Price Performance

Over the last one year, KAJARIA CERAMICS share price has moved up from Rs 567.1 to Rs 590.7, registering a gain of Rs 23.7 or around 4.2%.

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

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

Read: Latest Annual Report Analysis of KAJARIA CERAMICS