OMAXE 2018-19 Annual Report Analysis

Sun, 31 Mar

OMAXE 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.

OMAXE Income Statement Analysis

• Operating income during the year fell 36.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 50.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.0% in FY19 as against 14.1% in FY18.
• Depreciation charges increased by 2.6% and finance costs decreased by 56.1% YoY, respectively.
• Other income declined by 42.5% YoY.
• Net profit for the year declined by 42.9% YoY.
• Net profit margins during the year declined from 4.6% in FY18 to 4.2% in FY19.

OMAXE Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	18,391	11,665	-36.6%
Other income	Rs m	587	337	-42.5%
Total Revenues	Rs m	18,978	12,002	-36.8%
Gross profit	Rs m	2,601	1,281	-50.7%
Depreciation	Rs m	88	90	2.6%
Interest	Rs m	1,693	743	-56.1%
Profit before tax	Rs m	1,407	786	-44.2%
Tax	Rs m	555	299	-46.1%
Profit after tax	Rs m	852	487	-42.9%
Gross profit margin	%	14.1	11.0
Effective tax rate	%	39.5	38.1
Net profit margin	%	4.6	4.2

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OMAXE Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 77 billion as compared to Rs 47 billion in FY18, thereby witnessing an increase of 64.6%.
• Long-term debt stood at Rs 12 billion as compared to Rs 11 billion during FY18, a growth of 9.2%.
• Current assets rose 33% and stood at Rs 96 billion, while fixed assets rose 5% and stood at Rs 9 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 105 billion as against Rs 81 billion during FY18, thereby witnessing a growth of 30%.

OMAXE Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	21,969	17,404	-20.8
Current Liabilities	Rs m	46,637	76,770	64.6
Long-term Debt	Rs m	10,560	11,536	9.2
Total Liabilities	Rs m	80,641	104,747	29.9
Current assets	Rs m	72,501	96,201	32.7
Fixed Assets	Rs m	8,141	8,546	5.0
Total Assets	Rs m	80,641	104,747	29.9

OMAXE Cash Flow Statement Analysis

• OMAXE's cash flow from operating activities (CFO) during FY19 stood at Rs 4 billion, an improvement of 2,000.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 164 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -181 million from the Rs 43 million net cash flows seen during FY18.

OMAXE 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	191	4,005	2,000.1%
Cash Flow from Investing Activities	Rs m	207	164	-20.6%
Cash Flow from Financing Activities	Rs m	-355	-4,350	-
Net Cash Flow	Rs m	43	-181	-

Current Valuations for OMAXE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.7, an decline from the EPS of Rs 4.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 206.4, stands at 40.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 68.3 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	100.6	63.8
TTM Earnings per share	Rs	4.7	2.7
Diluted earnings per share	Rs	4.7	2.7
Price to Cash Flow	x	43.0	68.3
TTM P/E ratio	x	39.7	40.2
Price / Book Value ratio	x	1.7	2.3
Market Cap	Rs m	36,918	39,378
Dividends per share (Unadj.)	Rs	0.7	0.7

Ratio Analysis for OMAXE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY19, from 1.6x 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 1.8x 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 2.8% during FY19, from 3.9% 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 5.3% during FY19, from 9.5% 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 1.2% during FY19, from 3.2% 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	1.6	1.3
Debtors’ Days	Days	16	11
Interest coverage	x	1.8	2.1
Debt to equity ratio	x	0.5	0.7
Return on assets	%	3.2	1.2
Return on equity	%	3.9	2.8
Return on capital employed	%	9.5	5.3

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

OMAXE Share Price Performance

Over the last one year, OMAXE share price has moved down from Rs 220.7 to Rs 206.4, registering a loss of Rs 14.4 or around 6.5%.

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 OMAXE and quarterly results for OMAXE)

Read: Latest Annual Report Analysis of OMAXE