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LAKSHMI MACHINE 2018-19 Annual Report Analysis
Sun, 31 Mar

LAKSHMI MACHINE 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.

LAKSHMI MACHINE Income Statement Analysis

  • Operating income during the year rose 7.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 12.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.7% in FY19 as against 10.8% in FY18.
  • Depreciation charges decreased by 27.0% and finance costs increased by 51.6% YoY, respectively.
  • Other income declined by 5.1% YoY.
  • Net profit for the year declined by 13.6% YoY.
  • Net profit margins during the year declined from 8.5% in FY18 to 6.8% in FY19.

LAKSHMI MACHINE Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 25,190 27,118 7.7%
Other income Rs m 1,079 1,024 -5.1%
Total Revenues Rs m 26,269 28,142 7.1%
Gross profit Rs m 2,711 2,367 -12.7%
Depreciation Rs m 759 554 -27.0%
Interest Rs m 8 12 51.6%
Profit before tax Rs m 3,023 2,826 -6.5%
Tax Rs m 877 972 10.8%
Profit after tax Rs m 2,146 1,854 -13.6%
Gross profit margin % 10.8 8.7
Effective tax rate % 29.0 34.4
Net profit margin % 8.5 6.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

LAKSHMI MACHINE Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 9 billion as compared to Rs 12 billion in FY18, thereby witnessing an decrease of -25.2%.
  • Long-term debt down at Rs 29 million as compared to Rs 30 million during FY18, a fall of 0.6%.
  • Current assets fell 32% and stood at Rs 14 billion, while fixed assets rose 35% and stood at Rs 12 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 26 billion as against Rs 30 billion during FY18, thereby witnessing a fall of 12%.

LAKSHMI MACHINE Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 17,467 17,103 -2.1
 
Current Liabilities Rs m 11,576 8,653 -25.2
Long-term Debt Rs m 30 29 -0.6
Total Liabilities Rs m 29,920 26,245 -12.3
 
Current assets Rs m 21,138 14,354 -32.1
Fixed Assets Rs m 8,783 11,891 35.4
Total Assets Rs m 29,920 26,245 -12.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



LAKSHMI MACHINE Cash Flow Statement Analysis

  • LAKSHMI MACHINE's cash flow from operating activities (CFO) during FY19 stood at Rs 988 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 287 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -878 million from the Rs 1 billion net cash flows seen during FY18.

LAKSHMI MACHINE 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 2,105 988 -53.1%
Cash Flow from Investing Activities Rs m -228 287 -
Cash Flow from Financing Activities Rs m -440 -2,153 -
Net Cash Flow Rs m 1,437 -878 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for LAKSHMI MACHINE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 173.6, an decline from the EPS of Rs 195.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 6,093.1, stands at 34.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 2.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 32.5 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 2,298.4 2,539.1
TTM Earnings per share Rs 195.8 173.6
Diluted earnings per share Rs 200.9 173.5
Price to Cash Flow x 25.3 32.5
TTM P/E ratio x 34.7 34.4
Price / Book Value ratio x 3.5 4.6
Market Cap Rs m 61,175 78,150
Dividends per share (Unadj.) Rs 40.0 35.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for LAKSHMI MACHINE

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY19, from 1.8x 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 deteriorated and stood at 243.4x during FY19, from 394.2x 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 10.8% during FY19, from 12.3% 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 16.6% during FY19, from 17.3% 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 7.1% during FY19, from 7.2% 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 1.8 1.7
Debtors’ Days Days 357 259
Interest coverage x 394.2 243.4
Debt to equity ratio x 0.0 0.0
Return on assets % 7.2 7.1
Return on equity % 12.3 10.8
Return on capital employed % 17.3 16.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

LAKSHMI MACHINE Share Price Performance

Over the last one year, LAKSHMI MACHINE share price has moved down from Rs 6,872.9 to Rs 6,093.1, registering a loss of Rs 779.9 or around 11.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

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

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

Annual Report FAQs

What is the current share price of LAKSHMI MACHINE?

LAKSHMI MACHINE currently trades at Rs 15,164.3 per share. You can check out the latest share price performance of LAKSHMI MACHINE here...

What was the revenue of LAKSHMI MACHINE in FY19? How does it compare to earlier years?

The revenues of LAKSHMI MACHINE stood at Rs 28,142 m in FY19, which was up 7.1% compared to Rs 26,269 m reported in FY18.

LAKSHMI MACHINE's revenue has grown from Rs 24,021 m in FY15 to Rs 28,142 m in FY19.

Over the past 5 years, the revenue of LAKSHMI MACHINE has grown at a CAGR of 4.0%.

What was the net profit of LAKSHMI MACHINE in FY19? How does it compare to earlier years?

The net profit of LAKSHMI MACHINE stood at Rs 1,854 m in FY19, which was down -13.6% compared to Rs 2,146 m reported in FY18.

This compares to a net profit of Rs 1,864 m in FY17 and a net profit of Rs 2,273 m in FY16.

Over the past 5 years, LAKSHMI MACHINE net profit has grown at a CAGR of -4.2%.

What does the cash flow statement of LAKSHMI MACHINE reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of LAKSHMI MACHINE reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 988 m as compared to Rs 2,105 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs 287 m as compared to Rs -228 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -2,153 m as compared to Rs -440 m in FY18.

Here's the cash flow statement of LAKSHMI MACHINE for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations1,3068111,3692,105988
From Investments-538-640676-228287
From Financial Activity-404-520-1,951-440-2,153
Net Cashflow364-349941,437-878

What does the Key Ratio analysis of LAKSHMI MACHINE reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of LAKSHMI MACHINE reveals:

  • Operating profit margins witnessed a fall and stood at 8.7% in FY19 as against 10.8% in FY18.
  • Net profit margins declined from 8.5% in FY18 to 6.8% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of LAKSHMI MACHINE for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)13.113.712.310.88.7
Net Profit Margin (%)9.59.49.08.56.8
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of LAKSHMI MACHINE

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