MAHINDRA HOLIDAYS 2018-19 Annual Report Analysis

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MAHINDRA HOLIDAYS 2018-19 Annual Report Analysis
Fri, 18 Oct

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 52.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.4% in FY19 as against 15.0% in FY18.
  • Depreciation charges increased by 1.4% and finance costs decreased by 63.0% YoY, respectively.
  • Other income grew by 68.4% YoY.
  • Net profit for the year declined by 55.1% YoY.
  • Net profit margins during the year declined from 5.6% in FY18 to 2.6% 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 3,468 1,662 -52.1%
Depreciation Rs m 1,000 1,013 1.4%
Interest Rs m 637 236 -63.0%
Profit before tax Rs m 2,168 980 -54.8%
Tax Rs m 838 385 -54.1%
Profit after tax Rs m 1,328 596 -55.1%
Gross profit margin % 15.0 7.4
Effective tax rate % 38.7 39.3
Net profit margin % 5.6 2.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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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 69% and stood at Rs 27 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 73 billion as against Rs 45 billion during FY18, thereby witnessing a growth of 62%.

MAHINDRA HOLIDAYS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 7,115 2,816 -60.4
 
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 45,050 72,826 61.7
 
Current assets Rs m 22,009 24,588 11.7
Fixed Assets Rs m 15,742 26,677 69.5
Total Assets Rs m 45,050 72,826 61.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 217.2, stands at 28.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 12.7 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.0 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 15.0 6.7
Price to Cash Flow x 12.4 12.0
TTM P/E ratio x 42.2 28.2
Price / Book Value ratio x 8.7 12.7
Market Cap Rs m 28,829 19,279
Dividends per share (Unadj.) Rs 4.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 improved and stood at 5.2x 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 improved and stood at 21.2% during FY19, from 18.7% 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 14.3% during FY19, from 19.7% 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 1.1% during FY19, from 4.4% 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 2.3 1.9
Debtors’ Days Days 169 181
Interest coverage x 4.4 5.2
Debt to equity ratio x 1.0 2.0
Return on assets % 4.4 1.1
Return on equity % 18.7 21.2
Return on capital employed % 19.7 14.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 up from Rs 194.2 to Rs 217.2, registering a gain of Rs 23.0 or around 11.8%.

Overall, the S&P BSE SENSEX is up 12.8% over the year.

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

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