PIRAMAL ENTERPRISES 2018-19 Annual Report Analysis

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PIRAMAL ENTERPRISES 2018-19 Annual Report Analysis
Tue, 9 Jul

PIRAMAL ENTERPRISES 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.

PIRAMAL ENTERPRISES Income Statement Analysis

  • Operating income during the year rose 24.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 28.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 50.2% in FY19 as against 48.5% in FY18.
  • Depreciation charges increased by 9.0% and finance costs increased by 48.1% YoY, respectively.
  • Other income grew by 20.5% YoY.
  • Net profit for the year declined by 71.3% YoY.
  • Net profit margins during the year declined from 47.0% in FY18 to 10.9% in FY19.

PIRAMAL ENTERPRISES Income Statement 2018-19

No. of Mths Year Ending12 Mar-18*12 Mar-19*% Change
Net SalesRs m106,310132,15324.3%
Other incomeRs m2,5953,12820.5%
Total RevenuesRs m108,906135,28124.2%
Gross profitRs m51,59966,29028.5%
DepreciationRs m4,7735,2029.0%
InterestRs m29,78344,09748.1%
Profit before taxRs m19,63820,1192.4%
TaxRs m-28,7648,611-129.9%
Profit after taxRs m51,20314,701-71.3%
Gross profit margin%48.550.2
Effective tax rate%-146.542.8
Net profit margin%47.010.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PIRAMAL ENTERPRISES Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 311 billion as compared to Rs 217 billion in FY18, thereby witnessing an increase of 43.0%.
  • Long-term debt stood at Rs 270 billion as compared to Rs 242 billion during FY18, a growth of 11.6%.
  • Current assets rose 4% and stood at Rs 123 billion, while fixed assets rose 3% and stood at Rs 117 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 856 billion as against Rs 728 billion during FY18, thereby witnessing a growth of 18%.

PIRAMAL ENTERPRISES Balance Sheet as on March 2019

No. of Mths Year Ending12 Mar-18*12 Mar-19*% Change
NetworthRs m265,624272,5302.6
 
Current LiabilitiesRs m217,285310,81043.0
Long-term DebtRs m242,206270,19611.6
Total LiabilitiesRs m728,004856,26117.6
 
Current assetsRs m118,154122,7423.9
Fixed AssetsRs m 113,727116,9042.8
Total AssetsRs m728,004856,26117.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PIRAMAL ENTERPRISES Cash Flow Statement Analysis

  • PIRAMAL ENTERPRISES's cash flow from operating activities (CFO) during FY19 stood at Rs -116 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -8 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 108 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -17 billion from the Rs 9 billion net cash flows seen during FY18.

PIRAMAL ENTERPRISES Cash Flow Statement 2018-19

ParticularsNo. of months1212% Change
Year EndingMar-18Mar-19
Cash Flow from Operating ActivitiesRs m-159,666-115,975-
Cash Flow from Investing ActivitiesRs m-17,677-8,265-
Cash Flow from Financing ActivitiesRs m186,503107,525-42.3%
Net Cash FlowRs m9,364-16,650-
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for PIRAMAL ENTERPRISES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 79.7, an decline from the EPS of Rs 284.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,958.9, stands at 27.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 3.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-18*12 Mar-19*
Sales per share (Unadj.)Rs589.7716.5
TTM Earnings per shareRs284.079.7
Diluted earnings per shareRs296.785.2
Price to Cash Flow x6.620.2
TTM P/E ratiox28.827.6
Price / Book Value ratiox1.71.7
Market CapRs m353,122338,019
Dividends per share (Unadj.)Rs25.028.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for PIRAMAL ENTERPRISES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY19, from 0.5x 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 1.7x 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 5.4% during FY19, from 19.3% 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 improved and stood at 12.4% during FY19, from 10.3% 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 6.9% during FY19, from 11.1% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-18*12 Mar-19*
Current ratiox0.50.4
Debtors’ DaysDays4739
Interest coveragex1.71.5
Debt to equity ratiox0.91.0
Return on assets%11.16.9
Return on equity%19.35.4
Return on capital employed%10.312.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

PIRAMAL ENTERPRISES Share Price Performance

Over the last one year, PIRAMAL ENTERPRISES share price has moved down from Rs 2,456.8 to Rs 1,958.9, registering a loss of Rs 497.9 or around 20.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 12,629.8 (up 0.6%). Over the last one year it has moved down from 14,208.3 to 12,629.8, a loss of 1,578 points (down 11.1%).

Overall, the S&P BSE SENSEX is up 7.2% over the year.

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

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Related Views on News

PIRAMAL ENTERPRISES Announces Quarterly Results (1QFY20); Net Profit Up 390.0% (Quarterly Result Update)

Aug 1, 2019 | Updated on Aug 1, 2019

For the quarter ended June 2019, PIRAMAL ENTERPRISES has posted a net profit of Rs 4 bn (up 390.0% YoY). Sales on the other hand came in at Rs 35 bn (up 20.8% YoY). Read on for a complete analysis of PIRAMAL ENTERPRISES's quarterly results.

PIRAMAL ENTERPRISES Announces Quarterly Results (4QFY19); Net Profit Down 91.4% (Quarterly Result Update)

Apr 30, 2019 | Updated on Apr 30, 2019

For the quarter ended March 2019, PIRAMAL ENTERPRISES has posted a net profit of Rs 3 bn (down 91.4% YoY). Sales on the other hand came in at Rs 37 bn (up 23.0% YoY). Read on for a complete analysis of PIRAMAL ENTERPRISES's quarterly results.

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