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MCLEOD RUSSEL 2019-20 Annual Report Analysis
Tue, 31 Mar

MCLEOD RUSSEL has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

MCLEOD RUSSEL Income Statement Analysis

  • Operating income during the year fell 33.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 65.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.3% in FY20 as against 14.2% in FY19.
  • Depreciation charges decreased by 7.3% and finance costs decreased by 32.8% YoY, respectively.
  • Other income declined by 86.8% YoY.
  • Net profit for the year declined by 481.8% YoY.
  • Net profit margins during the year declined from 2.3% in FY19 to 13.0% in FY20.

MCLEOD RUSSEL Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 17,229 11,430 -33.7%
Other income Rs m 2,373 314 -86.8%
Total Revenues Rs m 19,602 11,744 -40.1%
Gross profit Rs m 2,451 837 -65.8%
Depreciation Rs m 841 780 -7.3%
Interest Rs m 3,376 2,267 -32.8%
Profit before tax Rs m 607 -1,896 -412.4%
Tax Rs m 219 -414 -289.2%
Profit after tax Rs m 388 -1,482 -481.8%
Gross profit margin % 14.2 7.3
Effective tax rate % 36.0 21.8
Net profit margin % 2.3 -13.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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MCLEOD RUSSEL Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 31 billion as compared to Rs 24 billion in FY19, thereby witnessing an increase of 25.2%.
  • Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY19, a fall of 16.6%.
  • Current assets fell 37% and stood at Rs 8 billion, while fixed assets rose 24% and stood at Rs 45 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 53 billion as against Rs 49 billion during FY19, thereby witnessing a growth of 7%.

MCLEOD RUSSEL Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 20,142 18,544 -7.9
 
Current Liabilities Rs m 24,407 30,554 25.2
Long-term Debt Rs m 2,227 1,858 -16.6
Total Liabilities Rs m 49,189 52,871 7.5
 
Current assets Rs m 12,967 8,106 -37.5
Fixed Assets Rs m 36,222 44,765 23.6
Total Assets Rs m 49,189 52,871 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MCLEOD RUSSEL Cash Flow Statement Analysis

  • MCLEOD RUSSEL's cash flow from operating activities (CFO) during FY20 stood at Rs 841 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -7 billion, an improvement of 129.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs 4 billion, an improvement of 13% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -3 billion from the Rs 3 billion net cash flows seen during FY19.

MCLEOD RUSSEL Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 2,802 841 -70.0%
Cash Flow from Investing Activities Rs m -3,234 -7,404 -
Cash Flow from Financing Activities Rs m 3,198 3,618 13.1%
Net Cash Flow Rs m 2,766 -2,945 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MCLEOD RUSSEL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -14.2, an decline from the EPS of Rs 4.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2.1, stands at -0.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to sales ratio stands at 0.0 times.
  • The company's price to cash flow (P/CF) ratio stood at -7.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 197.2 109.4
TTM Earnings per share Rs 4.4 -14.2
Diluted earnings per share Rs 3.7 -14.2
Price to Cash Flow x 7.3 -7.1
TTM P/E ratio x -203.1 -0.1
Price / Book Value ratio x 0.6 0.3
Market Cap Rs m 11,284 5,006
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MCLEOD RUSSEL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY20, from 0.5x during FY19. 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 0.2x during FY20, from 1.2x during FY19. 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 -8.0% during FY20, from 1.9% during FY20. 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 1.8% during FY20, from 17.8% during FY19. 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 1.5% during FY20, from 7.7% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 0.5 0.3
Debtors’ Days Days 84 110
Interest coverage x 1.2 0.2
Debt to equity ratio x 0.1 0.1
Return on assets % 7.7 1.5
Return on equity % 1.9 -8.0
Return on capital employed % 17.8 1.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

MCLEOD RUSSEL Share Price Performance

Over the last one year, MCLEOD RUSSEL share price has moved down from Rs 85.8 to Rs 2.1, registering a loss of Rs 83.7 or around 97.6%.

Overall, the S&P BSE SENSEX is down 24.2% over the year.

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

Annual Report FAQs

What is the current share price of MCLEOD RUSSEL?

MCLEOD RUSSEL currently trades at Rs 22.7 per share. You can check out the latest share price performance of MCLEOD RUSSEL here...

What was the revenue of MCLEOD RUSSEL in FY20? How does it compare to earlier years?

The revenues of MCLEOD RUSSEL stood at Rs 11,744 m in FY20, which was down -40.1% compared to Rs 19,602 m reported in FY19.

MCLEOD RUSSEL's revenue has fallen from Rs 20,177 m in FY16 to Rs 11,744 m in FY20.

Over the past 5 years, the revenue of MCLEOD RUSSEL has grown at a CAGR of -12.7%.

What was the net profit of MCLEOD RUSSEL in FY20? How does it compare to earlier years?

The net loss of MCLEOD RUSSEL stood at Rs -1,482 m in FY20, which was down -481.8% compared to Rs 388 m reported in FY19.

This compares to a net profit of Rs 2,192 m in FY18 and a net profit of Rs 644 m in FY17.

Over the past 5 years, MCLEOD RUSSEL net profit has grown at a CAGR of NaN%.

What does the cash flow statement of MCLEOD RUSSEL 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 MCLEOD RUSSEL reveals:

  • Cash flow from operations decreased in FY20 and stood at Rs 841 m as compared to Rs 2,802 m in FY19.
  • Cash flow from investments decreased in FY20 and stood at Rs -7,404 m as compared to Rs -3,234 m in FY19.
  • Cash flow from financial activity increased in FY20 and stood at Rs 3,618 m as compared to Rs 3,198 m in FY19.

Here's the cash flow statement of MCLEOD RUSSEL for the past 5 years.

(Rs m)FY16FY17FY18FY19FY20
From Operations2,0681,3721,9632,802841
From Investments-2,889-681-1,473-3,234-7,404
From Financial Activity847-645-2623,1983,618
Net Cashflow27462282,766-2,945

What does the Key Ratio analysis of MCLEOD RUSSEL 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 MCLEOD RUSSEL reveals:

  • Operating profit margins witnessed a fall and stood at 7.3% in FY20 as against 14.2% in FY19.
  • Net profit margins declined from 2.3% in FY19 to 13.0% in FY20.
  • Debt to Equity ratio for FY20 stood at 0.1 as compared to 0.1 in FY19.

Here's the ratio/financial analysis of MCLEOD RUSSEL for the past 5 years.

 FY16FY17FY18FY19FY20
Operating Profit Margin (%)8.85.96.814.27.3
Net Profit Margin (%)1.83.410.72.3-13.0
Debt to Equity Ratio (x)0.20.10.20.10.1

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