SPICEJET 2019-20 Annual Report Analysis

Tue, 31 Mar

SPICEJET has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

SPICEJET Income Statement Analysis

• Operating income during the year rose 35.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2119.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.4% in FY20 as against 0.3% in FY19.
• Depreciation charges increased by 576.9% and finance costs increased by 255.0% YoY, respectively.
• Other income grew by 473.6% YoY.
• Net profit for the year grew by 209.7% YoY.
• Net profit margins during the year declined from 3.3% in FY19 to 7.6% in FY20.

SPICEJET Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	91,215	123,746	35.7%
Other income	Rs m	1,448	8,305	473.6%
Total Revenues	Rs m	92,663	132,051	42.5%
Gross profit	Rs m	-272	5,491	-2,119.1%
Depreciation	Rs m	2,564	17,354	576.9%
Interest	Rs m	1,636	5,808	255.0%
Profit before tax	Rs m	-3,024	-9,366	209.7%
Tax	Rs m	0	0	-100.0%
Profit after tax	Rs m	-3,024	-9,366	209.7%
Gross profit margin	%	-0.3	4.4
Effective tax rate	%	0.0	0.0
Net profit margin	%	-3.3	-7.6

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SPICEJET Balance Sheet Analysis

• The company's current liabilities during FY20 stood at Rs 65 billion as compared to Rs 36 billion in FY19, thereby witnessing an increase of 80.1%.
• Long-term debt down at Rs 5 billion as compared to Rs 6 billion during FY19, a fall of 17.5%.
• Current assets rose 60% and stood at Rs 22 billion, while fixed assets rose 211% and stood at Rs 106 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 129 billion as against Rs 48 billion during FY19, thereby witnessing a growth of 168%.

SPICEJET Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	-3,562	-15,935	347.4
Current Liabilities	Rs m	36,314	65,402	80.1
Long-term Debt	Rs m	5,566	4,593	-17.5
Total Liabilities	Rs m	48,046	128,606	167.7
Current assets	Rs m	13,814	22,138	60.3
Fixed Assets	Rs m	34,232	106,468	211.0
Total Assets	Rs m	48,046	128,606	167.7

SPICEJET Cash Flow Statement Analysis

• SPICEJET's cash flow from operating activities (CFO) during FY20 stood at Rs 18 billion, an improvement of 291.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -2 billion, an improvement of 14.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -17 billion on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs -370 million from the Rs -532 million net cash flows seen during FY19.

SPICEJET Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-19	Mar-20
Cash Flow from Operating Activities	Rs m	4,555	17,841	291.6%
Cash Flow from Investing Activities	Rs m	-1,442	-1,655	-
Cash Flow from Financing Activities	Rs m	-3,638	-16,599	-
Net Cash Flow	Rs m	-532	-370	-

Current Valuations for SPICEJET

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -15.6, an decline from the EPS of Rs -5.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 36.9, stands at -2.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -1.4 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 7.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Sales per share (Unadj.)	Rs	152.1	206.2
TTM Earnings per share	Rs	-5.0	-15.6
Diluted earnings per share	Rs	-5.0	-15.6
Price to Cash Flow	x	-127.7	7.1
TTM P/E ratio	x	12.9	-2.4
Price / Book Value ratio	x	-17.1	-3.5
Market Cap	Rs m	60,751	56,317
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SPICEJET

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY20, from 0.4x during FY19. 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 -0.6x during FY20, from -0.8x during FY19. 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 58.8% during FY20, from 84.9% during FY20. 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 31.4% during FY20, from -69.2% during FY19. 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 -2.8% during FY20, from -2.9% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Current ratio	x	0.4	0.3
Debtors’ Days	Days	6	9
Interest coverage	x	-0.8	-0.6
Debt to equity ratio	x	-1.6	-0.3
Return on assets	%	-2.9	-2.8
Return on equity	%	84.9	58.8
Return on capital employed	%	-69.2	31.4

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

SPICEJET Share Price Performance

Over the last one year, SPICEJET share price has moved down from Rs 97.8 to Rs 36.9, registering a loss of Rs 60.9 or around 62.3%.

Overall, the S&P BSE SENSEX is down 24.2% over the year.

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

Read: Latest Annual Report Analysis of SPICEJET