MANGALORE CHEM. 2018-19 Annual Report Analysis

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MANGALORE CHEM. 2018-19 Annual Report Analysis
Fri, 18 Oct

MANGALORE CHEM. 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.

MANGALORE CHEM. Income Statement Analysis

  • Operating income during the year rose 14.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 1.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.1% in FY19 as against 6.9% in FY18.
  • Depreciation charges increased by 4.8% and finance costs increased by 31.7% YoY, respectively.
  • Other income grew by 1.5% YoY.
  • Net profit for the year declined by 45.7% YoY.
  • Net profit margins during the year declined from 2.2% in FY18 to 1.1% in FY19.

MANGALORE CHEM. Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 26,889 30,736 14.3%
Other income Rs m 119 120 1.5%
Total Revenues Rs m 27,008 30,857 14.3%
Gross profit Rs m 1,845 1,879 1.9%
Depreciation Rs m 370 388 4.8%
Interest Rs m 843 1,110 31.7%
Profit before tax Rs m 751 501 -33.2%
Tax Rs m 145 173 19.4%
Profit after tax Rs m 606 329 -45.7%
Gross profit margin % 6.9 6.1
Effective tax rate % 19.3 34.4
Net profit margin % 2.2 1.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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MANGALORE CHEM. Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 21 billion as compared to Rs 18 billion in FY18, thereby witnessing an increase of 17.4%.
  • Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY18, a growth of 37.3%.
  • Current assets rose 21% and stood at Rs 22 billion, while fixed assets rose 1% and stood at Rs 6 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 29 billion as against Rs 25 billion during FY18, thereby witnessing a growth of 16%.

MANGALORE CHEM. Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 4,773 4,952 3.7
 
Current Liabilities Rs m 18,010 21,134 17.4
Long-term Debt Rs m 1,969 2,703 37.3
Total Liabilities Rs m 25,080 29,182 16.4
 
Current assets Rs m 18,551 22,425 20.9
Fixed Assets Rs m 6,439 6,479 0.6
Total Assets Rs m 25,080 29,182 16.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MANGALORE CHEM. Cash Flow Statement Analysis

  • MANGALORE CHEM.'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 -589 million, an improvement of 48.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 2 billion, an improvement of 314% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -710 million from the Rs 537 million net cash flows seen during FY18.

MANGALORE CHEM. 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 329 -2,618 -
Cash Flow from Investing Activities Rs m -396 -589 -
Cash Flow from Financing Activities Rs m 604 2,496 313.6%
Net Cash Flow Rs m 537 -710 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for MANGALORE CHEM.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.8, an decline from the EPS of Rs 5.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 29.8, stands at 9.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.9 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 226.9 259.3
TTM Earnings per share Rs 5.1 2.8
Diluted earnings per share Rs 5.1 2.8
Price to Cash Flow x 3.6 4.9
TTM P/E ratio x 9.6 9.6
Price / Book Value ratio x 1.8 1.1
Market Cap Rs m 3,526 3,526
Dividends per share (Unadj.) Rs 1.0 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for MANGALORE CHEM.

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY19, from 1.0x 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 1.5x during FY19, from 1.9x 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 6.6% during FY19, from 12.7% 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 21.1% during FY19, from 23.6% 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 4.9% during FY19, from 5.8% 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 1.0 1.1
Debtors’ Days Days 161 186
Interest coverage x 1.9 1.5
Debt to equity ratio x 0.4 0.5
Return on assets % 5.8 4.9
Return on equity % 12.7 6.6
Return on capital employed % 23.6 21.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

MANGALORE CHEM. Share Price Performance

Over the last one year, MANGALORE CHEM. share price has moved down from Rs 41.7 to Rs 29.8, registering a loss of Rs 11.9 or around 28.6%.

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

(To know more, check out historical annual results for MANGALORE CHEM. and quarterly results for MANGALORE CHEM.)

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Related Views on News

MANGALORE CHEM. Announces Quarterly Results (2QFY20); Net Profit Down 22.2% (Quarterly Result Update)

Nov 1, 2019 | Updated on Nov 1, 2019

For the quarter ended September 2019, MANGALORE CHEM. has posted a net profit of Rs 226 m (down 22.2% YoY). Sales on the other hand came in at Rs 7 bn (down 26.8% YoY). Read on for a complete analysis of MANGALORE CHEM.'s quarterly results.

MANGALORE CHEM. Announces Quarterly Results (1QFY20); Net Profit Up 98.8% (Quarterly Result Update)

Aug 16, 2019 | Updated on Aug 16, 2019

For the quarter ended June 2019, MANGALORE CHEM. has posted a net profit of Rs 0 m (up 98.8% YoY). Sales on the other hand came in at Rs 7 bn (up 10.5% YoY). Read on for a complete analysis of MANGALORE CHEM.'s quarterly results.

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