PENINSULA LAND 2018-19 Annual Report Analysis

Sun, 31 Mar

PENINSULA LAND 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.

PENINSULA LAND Income Statement Analysis

• Operating income during the year fell 34.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 137.2% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 81.3% in FY19 as against 22.6% in FY18.
• Depreciation charges decreased by 2.8% and finance costs decreased by 16.6% YoY, respectively.
• Other income declined by 55.0% YoY.
• Net profit for the year grew by 31.9% YoY.
• Net profit margins during the year declined from 91.1% in FY18 to 182.3% in FY19.

PENINSULA LAND Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	4,976	3,278	-34.1%
Other income	Rs m	569	256	-55.0%
Total Revenues	Rs m	5,545	3,534	-36.3%
Gross profit	Rs m	-1,123	-2,664	137.2%
Depreciation	Rs m	47	46	-2.8%
Interest	Rs m	3,893	3,246	-16.6%
Profit before tax	Rs m	-4,494	-5,700	26.8%
Tax	Rs m	38	277	624.3%
Profit after tax	Rs m	-4,533	-5,977	31.9%
Gross profit margin	%	-22.6	-81.3
Effective tax rate	%	-0.8	-4.9
Net profit margin	%	-91.1	-182.3

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PENINSULA LAND Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 23 billion as compared to Rs 19 billion in FY18, thereby witnessing an increase of 22.5%.
• Long-term debt down at Rs 16 billion as compared to Rs 18 billion during FY18, a fall of 12.8%.
• Current assets fell 5% and stood at Rs 38 billion, while fixed assets fell 6% and stood at Rs 9 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 47 billion as against Rs 49 billion during FY18, thereby witnessing a fall of 5%.

PENINSULA LAND Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	10,492	4,883	-53.5
Current Liabilities	Rs m	19,065	23,362	22.5
Long-term Debt	Rs m	17,838	15,555	-12.8
Total Liabilities	Rs m	49,391	46,810	-5.2
Current assets	Rs m	39,648	37,690	-4.9
Fixed Assets	Rs m	9,743	9,120	-6.4
Total Assets	Rs m	49,391	46,810	-5.2

PENINSULA LAND Cash Flow Statement Analysis

• PENINSULA LAND's cash flow from operating activities (CFO) during FY19 stood at Rs 4 billion, an improvement of 9.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 707 million, an improvement of 1,921.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -67 million from the Rs -292 million net cash flows seen during FY18.

PENINSULA LAND 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	3,429	3,747	9.2%
Cash Flow from Investing Activities	Rs m	35	707	1,921.1%
Cash Flow from Financing Activities	Rs m	-3,896	-4,521	-
Net Cash Flow	Rs m	-292	-67	-

Current Valuations for PENINSULA LAND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -21.4, an decline from the EPS of Rs -16.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8.3, stands at -0.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at -0.8 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	17.8	11.7
TTM Earnings per share	Rs	-16.2	-21.4
Diluted earnings per share	Rs	-16.2	-21.4
Price to Cash Flow	x	-1.3	-0.8
TTM P/E ratio	x	-1.7	-0.3
Price / Book Value ratio	x	0.8	1.0
Market Cap	Rs m	8,544	4,730
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PENINSULA LAND

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY19, from 2.1x 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 -0.8x during FY19, from -0.2x 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 -122.4% during FY19, from -43.2% 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 -12.0% during FY19, from -2.1% 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 -5.8% during FY19, from -1.3% 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	2.1	1.6
Debtors’ Days	Days	8	4
Interest coverage	x	-0.2	-0.8
Debt to equity ratio	x	1.7	3.2
Return on assets	%	-1.3	-5.8
Return on equity	%	-43.2	-122.4
Return on capital employed	%	-2.1	-12.0

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

PENINSULA LAND Share Price Performance

Over the last one year, PENINSULA LAND share price has moved down from Rs 20.3 to Rs 8.3, registering a loss of Rs 12.0 or around 59.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,077.1 (up 0.6%). Over the last one year it has moved down from 2,229.9 to 2,077.1, a loss of 153 points (down 6.9%).

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

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

Read: Latest Annual Report Analysis of PENINSULA LAND