MUNJAL SHOWA 2018-19 Annual Report Analysis

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MUNJAL SHOWA 2018-19 Annual Report Analysis
Mon, 16 Sep

MUNJAL SHOWA 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.

MUNJAL SHOWA Income Statement Analysis

  • Operating income during the year rose 5.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 22.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.3% in FY19 as against 7.2% in FY18.
  • Depreciation charges decreased by 8.1% and finance costs decreased by 33.3% YoY, respectively.
  • Other income grew by 13.2% YoY.
  • Net profit for the year declined by 19.2% YoY.
  • Net profit margins during the year declined from 4.8% in FY18 to 3.7% in FY19.

MUNJAL SHOWA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 15,814 16,693 5.6%
Other income Rs m 207 234 13.2%
Total Revenues Rs m 16,021 16,927 5.7%
Gross profit Rs m 1,131 882 -22.0%
Depreciation Rs m 282 259 -8.1%
Interest Rs m 2 1 -33.3%
Profit before tax Rs m 1,054 855 -18.8%
Tax Rs m 279 230 -17.7%
Profit after tax Rs m 775 626 -19.2%
Gross profit margin % 7.2 5.3
Effective tax rate % 26.5 26.8
Net profit margin % 4.8 3.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MUNJAL SHOWA Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 2 billion as compared to Rs 2 billion in FY18, thereby witnessing an decrease of -19.3%.
  • Current assets fell 7% and stood at Rs 5 billion, while fixed assets fell 8% and stood at Rs 1 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 8 billion as against Rs 8 billion during FY18, thereby witnessing a fall of 0%.

MUNJAL SHOWA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 5,696 6,106 7.2
 
Current Liabilities Rs m 2,207 1,781 -19.3
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 7,933 7,915 -0.2
 
Current assets Rs m 5,778 5,383 -6.8
Fixed Assets Rs m 1,580 1,457 -7.8
Total Assets Rs m 7,933 7,915 -0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MUNJAL SHOWA Cash Flow Statement Analysis

  • MUNJAL SHOWA's cash flow from operating activities (CFO) during FY19 stood at Rs 410 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 35 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -218 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 227 million from the Rs 135 million net cash flows seen during FY18.

MUNJAL SHOWA 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 962 410 -57.4%
Cash Flow from Investing Activities Rs m -633 35 -
Cash Flow from Financing Activities Rs m -194 -218 -
Net Cash Flow Rs m 135 227 67.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for MUNJAL SHOWA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.6, an decline from the EPS of Rs 19.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 132.8, stands at 8.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.0 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 395.4 417.3
TTM Earnings per share Rs 19.4 15.6
Diluted earnings per share Rs 19.4 15.6
Price to Cash Flow x 5.0 6.0
TTM P/E ratio x 8.7 8.7
Price / Book Value ratio x 1.7 1.3
Market Cap Rs m 5,310 5,310
Dividends per share (Unadj.) Rs 4.5 4.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for MUNJAL SHOWA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.0x during FY19, from 2.6x 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 856.4x during FY19, from 703.7x 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 10.3% during FY19, from 13.6% 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 14.0% during FY19, from 18.5% 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 declined and down at 7.9% during FY19, from 9.8% 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 2.6 3.0
Debtors’ Days Days 57 44
Interest coverage x 703.7 856.4
Debt to equity ratio x 0.0 0.0
Return on assets % 9.8 7.9
Return on equity % 13.6 10.3
Return on capital employed % 18.5 14.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

MUNJAL SHOWA Share Price Performance

Over the last one year, MUNJAL SHOWA share price has moved down from Rs 218.9 to Rs 132.8, registering a loss of Rs 86.2 or around 39.4%.

Overall, the S&P BSE SENSEX is down 2.3% over the year.

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

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