MOTHERSON SUMI 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

MOTHERSON SUMI 2018-19 Annual Report Analysis
Thu, 1 Aug

MOTHERSON SUMI 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.

MOTHERSON SUMI Income Statement Analysis

  • Operating income during the year rose 12.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 4.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.4% in FY19 as against 9.1% in FY18.
  • Depreciation charges increased by 30.7% and finance costs increased by 3.0% YoY, respectively.
  • Other income grew by 29.5% YoY.
  • Net profit for the year declined by 7.2% YoY.
  • Net profit margins during the year declined from 4.0% in FY18 to 3.3% in FY19.

MOTHERSON SUMI Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 562,933 635,229 12.8%
Other income Rs m 1,701 2,202 29.5%
Total Revenues Rs m 564,634 637,431 12.9%
Gross profit Rs m 51,226 53,484 4.4%
Depreciation Rs m 15,752 20,582 30.7%
Interest Rs m 4,108 4,232 3.0%
Profit before tax Rs m 33,067 30,872 -6.6%
Tax Rs m 10,072 11,022 9.4%
Profit after tax Rs m 22,599 20,981 -7.2%
Gross profit margin % 9.1 8.4
Effective tax rate % 30.5 35.7
Net profit margin % 4.0 3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MOTHERSON SUMI Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 189 billion as compared to Rs 153 billion in FY18, thereby witnessing an increase of 23.2%.
  • Long-term debt stood at Rs 81 billion as compared to Rs 76 billion during FY18, a growth of 7.0%.
  • Current assets rose 17% and stood at Rs 199 billion, while fixed assets rose 19% and stood at Rs 152 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 433 billion as against Rs 375 billion during FY18, thereby witnessing a growth of 16%.

MOTHERSON SUMI Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 98,841 109,627 10.9
 
Current Liabilities Rs m 153,342 188,906 23.2
Long-term Debt Rs m 75,701 80,995 7.0
Total Liabilities Rs m 374,977 433,302 15.6
 
Current assets Rs m 171,001 199,496 16.7
Fixed Assets Rs m 128,527 152,306 18.5
Total Assets Rs m 374,977 433,302 15.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MOTHERSON SUMI Cash Flow Statement Analysis

  • MOTHERSON SUMI's cash flow from operating activities (CFO) during FY19 stood at Rs 43 billion, an improvement of 32.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -33 billion, an improvement of 3.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion, an improvement of 90% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 8 billion from the Rs -22 billion net cash flows seen during FY18.

MOTHERSON SUMI 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 32,640 43,124 32.1%
Cash Flow from Investing Activities Rs m -31,941 -33,105 -
Cash Flow from Financing Activities Rs m -22,214 -2,246 -
Net Cash Flow Rs m -21,515 7,773 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for MOTHERSON SUMI

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.6, an decline from the EPS of Rs 10.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 105.0, stands at 16.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.0 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.2 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 267.4 201.2
TTM Earnings per share Rs 10.7 6.6
Diluted earnings per share Rs 7.2 6.6
Price to Cash Flow x 6.0 8.2
TTM P/E ratio x 11.0 16.5
Price / Book Value ratio x 8.5 7.0
Market Cap Rs m 221,055 331,510
Dividends per share (Unadj.) Rs 2.3 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for MOTHERSON SUMI

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY19, from 1.1x 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 8.3x during FY19, from 9.0x 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 19.1% during FY19, from 22.9% 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 19.0% during FY19, from 21.1% 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 5.8% during FY19, from 7.1% 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 1.1 1.1
Debtors’ Days Days 36 35
Interest coverage x 9.0 8.3
Debt to equity ratio x 0.8 0.7
Return on assets % 7.1 5.8
Return on equity % 22.9 19.1
Return on capital employed % 21.1 19.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how MOTHERSON SUMI has performed over the last 5 years, please visit here.

MOTHERSON SUMI Share Price Performance

Over the last one year, MOTHERSON SUMI share price has moved down from Rs 210.3 to Rs 105.0, registering a loss of Rs 105.3 or around 50.1%.

Overall, the S&P BSE SENSEX is down 1.7% over the year.

(To know more, check out historical annual results for MOTHERSON SUMI and quarterly results for MOTHERSON SUMI)

Equitymaster requests your view! Post a comment on "MOTHERSON SUMI 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

MOTHERSON SUMI Announces Quarterly Results (1QFY20); Net Profit Down 41.6% (Quarterly Result Update)

Aug 16, 2019 | Updated on Aug 16, 2019

For the quarter ended June 2019, MOTHERSON SUMI has posted a net profit of Rs 3 bn (down 41.6% YoY). Sales on the other hand came in at Rs 168 bn (up 13.7% YoY). Read on for a complete analysis of MOTHERSON SUMI's quarterly results.

MOTHERSON SUMI Announces Quarterly Results (4QFY19); Net Profit Down 43.3% (Quarterly Result Update)

May 29, 2019 | Updated on May 29, 2019

For the quarter ended March 2019, MOTHERSON SUMI has posted a net profit of Rs 4 bn (down 43.3% YoY). Sales on the other hand came in at Rs 172 bn (up 11.4% YoY). Read on for a complete analysis of MOTHERSON SUMI's quarterly results.

MOTHERSON SUMI 2017-18 Annual Report Analysis (Annual Result Update)

Aug 24, 2018 | Updated on Aug 24, 2018

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

Sandhar Technologies IPO: Worth Betting on This Automotive Component Manufacturer? (IPO)

Mar 17, 2018

Should you subscribe to the IPO of Sandhar Technologies Ltd?

More Views on News

Most Popular

Buy these 7 Stocks if You Believe in India(The 5 Minute Wrapup)

Sep 12, 2019

News headlines predict gloom and doom for India these days. You should ignore them.

A Rare Opportunity to Buy the Top 5 Stocks in the Market(The 5 Minute Wrapup)

Sep 16, 2019

The stock market today is throwing up a great opportunity to pile on quality stocks.

A Recession Proof Stock You Can Bet On(Profit Hunter)

Sep 10, 2019

Usually, the typical horizon period for my smallcap recommendations is 3 to 5 years. But if you ask me, this could be one business that you could own and pass on to future generations.

This Company Will Do Well Despite the Slowdown(The 5 Minute Wrapup)

Sep 11, 2019

How financial inclusion provides a big runway for this stock recommendation.

The 5 Best Trading Opportunities I've Spotted(Profit Hunter)

Sep 13, 2019

These 10 auto stocks should be in your watchlist for the next 32 months. Paste them on your workstation NOW.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2020
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK MOTHERSON SUMI

  • Track your investment in MOTHERSON SUMI with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON MOTHERSON SUMI

MOTHERSON SUMI - SKF INDIA COMPARISON

COMPARE MOTHERSON SUMI WITH

MARKET STATS