X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
PIRAMAL ENTERPRISES 2018-19 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?  

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)

Equitymaster requests your view! Post a comment on "PIRAMAL ENTERPRISES 2018-19 Annual Report Analysis". Click here!

  

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.

Aster DM Healthcare (IPO)

Feb 10, 2018

Should you subscribe to the IPO of Aster DM Healthcare Ltd?

Shalby Ltd. (IPO)

Dec 2, 2017

Should you subscribe to the IPO of Shalby Ltd?

More Views on News

Most Popular

This 60-Year Old Smallcap Company Could Be Our Next Recommendation(The 5 Minute Wrapup)

Aug 12, 2019

My experience at the recent AGM of this smallcap company which has financials of any FMCG major.

Interest Rates Are Low. Buy Solid Dividend Stocks Instead(The 5 Minute Wrapup)

Aug 13, 2019

The dividends paid by these stocks are helpful when interest rates are falling.

Smallcaps that Will Outperform in the Market Rebound(Profit Hunter)

Aug 12, 2019

Only These Smallcaps Will Give Historic Returns in the Future.

My Top 3 Dividend Stocks to Buy Now(Profit Hunter)

Aug 19, 2019

As markets continue to rattle amid earning season, upcoming elections, volatile crude price and US China trade war, it's a great idea to add some stability to your portfolio by adding dividend stocks.

Chandrayaan 2 Heads to the Moon and It's Good News for These Stocks(The 5 Minute Wrapup)

Aug 14, 2019

Why investors should take note of India's advantage as a low cost satellite launcher...

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK PIRAMAL ENTERPRISES

  • Track your investment in PIRAMAL ENTERPRISES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON PIRAMAL ENTERPRISES

PIRAMAL ENTERPRISES - ADCOCK INGRAM COMPARISON

COMPARE PIRAMAL ENTERPRISES WITH

MARKET STATS