BOSCH 2018-19 Annual Report Analysis

Sun, 31 Mar

BOSCH 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.

BOSCH Income Statement Analysis

• Operating income during the year rose 6.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.6% in FY19 as against 17.4% in FY18.
• Depreciation charges decreased by 13.9% and finance costs increased by 303.0% YoY, respectively.
• Other income grew by 16.3% YoY.
• Net profit for the year grew by 16.6% YoY.
• Net profit margins during the year grew from 11.9% in FY18 to 13.0% in FY19.

BOSCH Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	115,080	122,578	6.5%
Other income	Rs m	5,118	5,954	16.3%
Total Revenues	Rs m	120,198	128,532	6.9%
Gross profit	Rs m	19,993	21,611	8.1%
Depreciation	Rs m	4,672	4,022	-13.9%
Interest	Rs m	33	133	303.0%
Profit before tax	Rs m	20,406	23,410	14.7%
Tax	Rs m	6,698	7,430	10.9%
Profit after tax	Rs m	13,708	15,980	16.6%
Gross profit margin	%	17.4	17.6
Effective tax rate	%	32.8	31.7
Net profit margin	%	11.9	13.0

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BOSCH Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 40 billion as compared to Rs 42 billion in FY18, thereby witnessing an decrease of -4.3%.
• Current assets fell 10% and stood at Rs 72 billion, while fixed assets fell 5% and stood at Rs 58 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 130 billion as against Rs 141 billion during FY18, thereby witnessing a fall of 8%.

BOSCH Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	99,726	91,178	-8.6
Current Liabilities	Rs m	41,952	40,133	-4.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	141,043	130,238	-7.7
Current assets	Rs m	80,108	72,254	-9.8
Fixed Assets	Rs m	60,935	57,984	-4.8
Total Assets	Rs m	141,043	130,238	-7.7

BOSCH Cash Flow Statement Analysis

• BOSCH's cash flow from operating activities (CFO) during FY19 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 18 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -25 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -2 billion from the Rs 2 billion net cash flows seen during FY18.

BOSCH 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	17,287	5,932	-65.7%
Cash Flow from Investing Activities	Rs m	-11,703	17,659	-
Cash Flow from Financing Activities	Rs m	-3,246	-25,308	-
Net Cash Flow	Rs m	2,338	-1,717	-

Current Valuations for BOSCH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 541.9, an improvement from the EPS of Rs 449.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 18,165.6, stands at 33.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 4.4 times.
• The company's price to cash flow (P/CF) ratio stood at 29.2 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	3,770.6	4,156.6
TTM Earnings per share	Rs	449.1	541.9
Diluted earnings per share	Rs	464.8	541.8
Price to Cash Flow	x	29.1	29.2
TTM P/E ratio	x	39.0	33.5
Price / Book Value ratio	x	6.5	6.4
Market Cap	Rs m	644,521	583,531
Dividends per share (Unadj.)	Rs	100.0	105.0

Ratio Analysis for BOSCH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY19, from 1.9x 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 177.0x during FY19, from 619.4x 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 17.5% during FY19, from 13.7% 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 improved and stood at 25.8% during FY19, from 20.5% 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 improved and stood at 12.4% during FY19, from 9.7% 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	1.9	1.8
Debtors’ Days	Days	51	47
Interest coverage	x	619.4	177.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.7	12.4
Return on equity	%	13.7	17.5
Return on capital employed	%	20.5	25.8

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

BOSCH Share Price Performance

Over the last one year, BOSCH share price has moved up from Rs 18,136.7 to Rs 18,165.6, registering a gain of Rs 28.9 or around 0.2%.

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

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

Read: Latest Annual Report Analysis of BOSCH