MAHINDRA HOLIDAYS 2018-19 Annual Report Analysis

Sun, 31 Mar

MAHINDRA HOLIDAYS 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.

MAHINDRA HOLIDAYS Income Statement Analysis

• Operating income during the year fell 3.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 50.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.2% in FY19 as against 15.9% in FY18.
• Depreciation charges increased by 1.4% and finance costs decreased by 53.5% YoY, respectively.
• Other income grew by 68.4% YoY.
• Net profit for the year declined by 55.3% YoY.
• Net profit margins during the year declined from 5.7% in FY18 to 2.7% in FY19.

MAHINDRA HOLIDAYS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	23,169	22,390	-3.4%
Other income	Rs m	337	567	68.4%
Total Revenues	Rs m	23,506	22,957	-2.3%
Gross profit	Rs m	3,694	1,828	-50.5%
Depreciation	Rs m	1,000	1,013	1.4%
Interest	Rs m	863	401	-53.5%
Profit before tax	Rs m	2,168	980	-54.8%
Tax	Rs m	838	385	-54.1%
Profit after tax	Rs m	1,330	595	-55.3%
Gross profit margin	%	15.9	8.2
Effective tax rate	%	38.7	39.3
Net profit margin	%	5.7	2.7

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MAHINDRA HOLIDAYS Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 13 billion as compared to Rs 10 billion in FY18, thereby witnessing an increase of 38.2%.
• Long-term debt down at Rs 6 billion as compared to Rs 7 billion during FY18, a fall of 20.5%.
• Current assets rose 12% and stood at Rs 25 billion, while fixed assets rose 83% and stood at Rs 42 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 66 billion as against Rs 45 billion during FY18, thereby witnessing a growth of 48%.

MAHINDRA HOLIDAYS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	7,003	2,689	-61.6
Current Liabilities	Rs m	9,536	13,182	38.2
Long-term Debt	Rs m	7,134	5,671	-20.5
Total Liabilities	Rs m	44,673	66,094	48.0
Current assets	Rs m	22,009	24,588	11.7
Fixed Assets	Rs m	22,664	41,506	83.1
Total Assets	Rs m	44,673	66,094	48.0

MAHINDRA HOLIDAYS Cash Flow Statement Analysis

• MAHINDRA HOLIDAYS's cash flow from operating activities (CFO) during FY19 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -207 million, an improvement of 86% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 38 million from the Rs -1 billion net cash flows seen during FY18.

MAHINDRA HOLIDAYS 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	5,510	2,632	-52.2%
Cash Flow from Investing Activities	Rs m	-5,471	-2,376	-
Cash Flow from Financing Activities	Rs m	-1,437	-207	-
Net Cash Flow	Rs m	-1,398	38	-

Current Valuations for MAHINDRA HOLIDAYS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.5, an decline from the EPS of Rs 10.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 240.1, stands at 31.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.9 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 22.2 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	174.5	168.5
TTM Earnings per share	Rs	10.0	4.5
Diluted earnings per share	Rs	6.6	3.0
Price to Cash Flow	x	25.2	22.2
TTM P/E ratio	x	43.6	31.2
Price / Book Value ratio	x	8.8	13.3
Market Cap	Rs m	61,660	35,743
Dividends per share (Unadj.)	Rs	4.0	0.0

Ratio Analysis for MAHINDRA HOLIDAYS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY19, from 2.3x 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 3.4x during FY19, from 3.5x 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 improved and stood at 22.1% 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 16.5% during FY19, from 21.4% 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 1.5% during FY19, from 4.9% 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	2.3	1.9
Debtors’ Days	Days	1,694	1,813
Interest coverage	x	3.5	3.4
Debt to equity ratio	x	1.0	2.1
Return on assets	%	4.9	1.5
Return on equity	%	19.0	22.1
Return on capital employed	%	21.4	16.5

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

MAHINDRA HOLIDAYS Share Price Performance

Over the last one year, MAHINDRA HOLIDAYS share price has moved down from Rs 292.3 to Rs 240.1, registering a loss of Rs 52.3 or around 17.9%.

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

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

Read: Latest Annual Report Analysis of MAHINDRA HOLIDAYS