NIIT LTD 2018-19 Annual Report Analysis

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NIIT LTD 2018-19 Annual Report Analysis
Tue, 23 Jul

NIIT LTD 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.

NIIT LTD Income Statement Analysis

  • Operating income during the year rose 7.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 4.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.8% in FY19 as against 8.0% in FY18.
  • Depreciation charges decreased by 10.1% and finance costs increased by 4.6% YoY, respectively.
  • Other income declined by 15.7% YoY.
  • Net profit for the year grew by 36.9% YoY.
  • Net profit margins during the year grew from 7.4% in FY18 to 9.5% in FY19.

NIIT LTD Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 8,505 9,102 7.0%
Other income Rs m 86 72 -15.7%
Total Revenues Rs m 8,591 9,174 6.8%
Gross profit Rs m 679 708 4.4%
Depreciation Rs m 401 361 -10.1%
Interest Rs m 194 203 4.6%
Profit before tax Rs m 170 218 28.1%
Tax Rs m 201 271 35.2%
Profit after tax Rs m 637 872 36.9%
Gross profit margin % 8.0 7.8
Effective tax rate % 118.2 124.7
Net profit margin % 7.4 9.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



NIIT LTD Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 4 billion as compared to Rs 5 billion in FY18, thereby witnessing an decrease of -16.4%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 928 million during FY18, a growth of 43.5%.
  • Current assets fell 3% and stood at Rs 5 billion, while fixed assets rose 0% and stood at Rs 2 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 15 billion as against Rs 14 billion during FY18, thereby witnessing a growth of 6%.

NIIT LTD Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 7,066 8,008 13.3
 
Current Liabilities Rs m 4,995 4,175 -16.4
Long-term Debt Rs m 928 1,332 43.5
Total Liabilities Rs m 14,048 14,909 6.1
 
Current assets Rs m 4,751 4,598 -3.2
Fixed Assets Rs m 1,527 1,534 0.5
Total Assets Rs m 14,048 14,909 6.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



NIIT LTD Cash Flow Statement Analysis

  • NIIT LTD's cash flow from operating activities (CFO) during FY19 stood at Rs 443 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -502 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -73 million, an improvement of 65% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -83 million from the Rs 42 million net cash flows seen during FY18.

NIIT LTD 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 881 443 -49.7%
Cash Flow from Investing Activities Rs m -524 -502 -
Cash Flow from Financing Activities Rs m -210 -73 -
Net Cash Flow Rs m 42 -83 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for NIIT LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.2, an improvement from the EPS of Rs 3.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 96.8, stands at 90.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 55.8 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 51.1 54.4
TTM Earnings per share Rs 3.8 5.2
Diluted earnings per share Rs 3.9 5.3
Price to Cash Flow x 42.8 55.8
TTM P/E ratio x 90.8 90.1
Price / Book Value ratio x 2.3 1.9
Market Cap Rs m 16,126 15,988
Dividends per share (Unadj.) Rs 0.0 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for NIIT LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY19, from 1.0x 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 improved and stood at 2.1x during FY19, from 1.9x 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 improved and stood at 10.9% during FY19, from 9.0% 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 14.4% during FY19, from 12.9% 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 improved and stood at 7.2% during FY19, from 5.9% 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 1.0 1.1
Debtors’ Days Days 71 66
Interest coverage x 1.9 2.1
Debt to equity ratio x 0.1 0.2
Return on assets % 5.9 7.2
Return on equity % 9.0 10.9
Return on capital employed % 12.9 14.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

NIIT LTD Share Price Performance

Over the last one year, NIIT LTD share price has moved up from Rs 91.2 to Rs 96.8, registering a gain of Rs 5.6 or around 6.1%.

Meanwhile, the S&P BSE IT Index is trading at Rs 15,688.9 (up 1.2%). Over the last one year it has moved up from 14,589.0 to 15,688.9, a gain of 1,100 points (up 7.5%).

Overall, the S&P BSE SENSEX is up 3.8% over the year.

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

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