UNITED SPIRITS 2018-19 Annual Report Analysis

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UNITED SPIRITS 2018-19 Annual Report Analysis
Mon, 16 Sep

UNITED SPIRITS 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.

UNITED SPIRITS Income Statement Analysis

  • Operating income during the year rose 8.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 15.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.9% in FY19 as against 14.1% in FY18.
  • Depreciation charges increased by 11.6% and finance costs decreased by 14.5% YoY, respectively.
  • Other income declined by 68.4% YoY.
  • Net profit for the year grew by 4.9% YoY.
  • Net profit margins during the year declined from 7.4% in FY18 to 7.3% in FY19.

UNITED SPIRITS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 85,906 93,408 8.7%
Other income Rs m 2,189 692 -68.4%
Total Revenues Rs m 88,095 94,100 6.8%
Gross profit Rs m 12,072 13,918 15.3%
Depreciation Rs m 1,923 2,147 11.6%
Interest Rs m 2,775 2,372 -14.5%
Profit before tax Rs m 9,563 10,091 5.5%
Tax Rs m 2,599 3,281 26.2%
Profit after tax Rs m 6,519 6,836 4.9%
Gross profit margin % 14.1 14.9
Effective tax rate % 27.2 32.5
Net profit margin % 7.4 7.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



UNITED SPIRITS Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 52 billion as compared to Rs 57 billion in FY18, thereby witnessing an decrease of -8.6%.
  • Long-term debt stood at Rs 8 billion as compared to Rs 8 billion during FY18, a growth of 2.3%.
  • Current assets fell 7% and stood at Rs 53 billion, while fixed assets rose 5% and stood at Rs 20 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 91 billion as against Rs 89 billion during FY18, thereby witnessing a growth of 2%.

UNITED SPIRITS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 24,191 30,903 27.7
 
Current Liabilities Rs m 56,777 51,878 -8.6
Long-term Debt Rs m 7,628 7,804 2.3
Total Liabilities Rs m 89,258 91,089 2.1
 
Current assets Rs m 56,619 52,638 -7.0
Fixed Assets Rs m 18,931 19,848 4.8
Total Assets Rs m 89,258 91,089 2.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



UNITED SPIRITS Cash Flow Statement Analysis

  • UNITED SPIRITS's cash flow from operating activities (CFO) during FY19 stood at Rs 9 billion, an improvement of 2.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -655 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -8 billion, an improvement of 16% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 745 million from the Rs 634 million net cash flows seen during FY18.

UNITED SPIRITS 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 9,251 9,483 2.5%
Cash Flow from Investing Activities Rs m 1,044 -655 -
Cash Flow from Financing Activities Rs m -9,661 -8,083 -
Net Cash Flow Rs m 634 745 17.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for UNITED SPIRITS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 47.0, an improvement from the EPS of Rs 44.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 609.4, stands at 11.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.9 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 591.2 642.8
TTM Earnings per share Rs 44.9 47.0
Diluted earnings per share Rs 44.9 47.0
Price to Cash Flow x 10.5 9.9
TTM P/E ratio x 11.4 11.4
Price / Book Value ratio x 17.5 3.1
Market Cap Rs m 88,558 88,564
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for UNITED SPIRITS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x 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 5.3x during FY19, from 4.4x 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 22.1% during FY19, from 26.9% 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 32.3% during FY19, from 37.4% 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 10.1% during FY19, from 10.4% 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 1.0
Debtors’ Days Days 115 99
Interest coverage x 4.4 5.3
Debt to equity ratio x 0.3 0.3
Return on assets % 10.4 10.1
Return on equity % 26.9 22.1
Return on capital employed % 37.4 32.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

UNITED SPIRITS Share Price Performance

Over the last one year, UNITED SPIRITS share price has moved up from Rs 581.8 to Rs 609.4, registering a gain of Rs 27.6 or around 4.7%.

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

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

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UNITED SPIRITS Announces Quarterly Results (1QFY20); Net Profit Up 142.8% (Quarterly Result Update)

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For the quarter ended June 2019, UNITED SPIRITS has posted a net profit of Rs 2 bn (up 142.8% YoY). Sales on the other hand came in at Rs 71 bn (up 10.3% YoY). Read on for a complete analysis of UNITED SPIRITS's quarterly results.

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Here's an analysis of the annual report of UNITED SPIRITS for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of UNITED SPIRITS. Also includes updates on the valuation of UNITED SPIRITS.

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