MARICO 2019-20 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?  

MARICO 2019-20 Annual Report Analysis
Mon, 28 Dec

MARICO 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.

MARICO Income Statement Analysis

  • Operating income during the year fell 0.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.1% in FY20 as against 18.1% in FY19.
  • Depreciation charges increased by 6.9% and finance costs increased by 25.0% YoY, respectively.
  • Other income grew by 20.4% YoY.
  • Net profit for the year declined by 7.8% YoY.
  • Net profit margins during the year declined from 15.2% in FY19 to 14.0% in FY20.

MARICO Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 73,340 73,150 -0.3%
Other income Rs m 1,030 1,240 20.4%
Total Revenues Rs m 74,370 74,390 0.0%
Gross profit Rs m 13,260 14,690 10.8%
Depreciation Rs m 1,310 1,400 6.9%
Interest Rs m 400 500 25.0%
Profit before tax Rs m 12,580 14,030 11.5%
Tax Rs m 1,260 3,310 162.7%
Profit after tax Rs m 11,310 10,430 -7.8%
Gross profit margin % 18.1 20.1
Effective tax rate % 10.0 23.6
Net profit margin % 15.2 14.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Watch Now: The Great Indian Wealth Project

MARICO Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 18 billion as compared to Rs 17 billion in FY19, thereby witnessing an increase of 3.5%.
  • Long-term debt down at Rs 100 million as compared to Rs 140 million during FY19, a fall of 28.6%.
  • Current assets fell 1% and stood at Rs 32 billion, while fixed assets rose 11% and stood at Rs 9 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 50 billion as against Rs 49 billion during FY19, thereby witnessing a growth of 2%.

MARICO Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 30,251 30,291 0.1
 
Current Liabilities Rs m 17,240 17,850 3.5
Long-term Debt Rs m 140 100 -28.6
Total Liabilities Rs m 49,090 50,020 1.9
 
Current assets Rs m 32,000 31,820 -0.6
Fixed Assets Rs m 7,700 8,580 11.4
Total Assets Rs m 49,090 50,020 1.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MARICO Cash Flow Statement Analysis

  • MARICO's cash flow from operating activities (CFO) during FY20 stood at Rs 12 billion, an improvement of 14.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -440 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -11 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 450 million from the Rs -30 million net cash flows seen during FY19.

MARICO 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 10,620 12,180 14.7%
Cash Flow from Investing Activities Rs m -3,340 -440 -
Cash Flow from Financing Activities Rs m -6,980 -11,460 -
Net Cash Flow Rs m -30 450 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for MARICO

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.1, an decline from the EPS of Rs 8.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 404.7, stands at 45.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 13.6 times, while the price to sales ratio stands at 5.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 44.1 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 56.8 56.7
TTM Earnings per share Rs 8.8 8.1
Diluted earnings per share Rs 8.8 8.1
Price to Cash Flow x 41.4 44.1
TTM P/E ratio x 45.9 45.8
Price / Book Value ratio x 15.0 13.6
Market Cap Rs m 522,363 521,982
Dividends per share (Unadj.) Rs 5.5 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for MARICO

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY20, from 1.9x 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 deteriorated and stood at 29.1x during FY20, from 32.5x 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 34.4% during FY20, from 37.4% 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 46.9% during FY20, from 42.7% 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 declined and down at 21.9% during FY20, from 23.9% 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 1.9 1.8
Debtors’ Days Days 26 27
Interest coverage x 32.5 29.1
Debt to equity ratio x 0.0 0.0
Return on assets % 23.9 21.9
Return on equity % 37.4 34.4
Return on capital employed % 42.7 46.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

MARICO Share Price Performance

Over the last one year, MARICO share price has moved up from Rs 340.7 to Rs 404.7, registering a gain of Rs 64.0 or around 18.8%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 12,597.8 (up 0.1%). Over the last one year it has moved up from 11,421.8 to 12,597.8, a gain of 1,176 points (up 10.3%).

Overall, the S&P BSE SENSEX is up 13.7% over the year.

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

Equitymaster requests your view! Post a comment on "MARICO 2019-20 Annual Report Analysis". Click here!

  

Related Views on News

MARICO Announces Quarterly Results (3QFY21); Net Profit Up 13.0% (Quarterly Result Update)

Jan 28, 2021 | Updated on Jan 28, 2021

For the quarter ended December 2020, MARICO has posted a net profit of Rs 3 bn (up 13.0% YoY). Sales on the other hand came in at Rs 21 bn (up 16.3% YoY). Read on for a complete analysis of MARICO's quarterly results.

MARICO Announces Quarterly Results (2QFY21); Net Profit Up 8.3% (Quarterly Result Update)

Nov 4, 2020 | Updated on Nov 4, 2020

For the quarter ended September 2020, MARICO has posted a net profit of Rs 3 bn (up 8.3% YoY). Sales on the other hand came in at Rs 20 bn (up 8.7% YoY). Read on for a complete analysis of MARICO's quarterly results.

Bajaj Consumer Care Q4 Results: Net Profit Jumps Over Two-Fold (Company Info)

Apr 21, 2021

Key takeaways from Bajaj Consumer Care's March quarter results.

Nestle India Sees Double-Digit Growth Across Segments in March Quarter (Company Info)

Apr 21, 2021

Key takeaways from Nestle's March quarter (Q1CY21) results.

More Views on News

Most Popular

Is Intraday Trading For You?(Fast Profits Daily)

May 13, 2021

Do you think you have what it takes to be an intraday trader? Find out in this video.

My Secret to Find Breakthrough Stocks(Fast Profits Daily)

May 7, 2021

I've used this trading technique for many years with great success. I'm sharing it with you today.

Are the Stock Markets Deaf to Covid Agony?(Profit Hunter)

May 6, 2021

Why are markets discounting the economic impact of Covid?

The Key to Profit from India's EV Revolution(Profit Hunter)

May 7, 2021

Stocks you must consider investing in before buying your first electric vehicle.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

TRACK MARICO

COMPARE MARICO WITH

MARKET STATS