PATEL ENGG. 2018-19 Annual Report Analysis

Wed, 25 Sep

PATEL ENGG. 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.

PATEL ENGG. Income Statement Analysis

• Operating income during the year rose 3.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 33.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.0% in FY19 as against 23.3% in FY18.
• Depreciation charges decreased by 7.5% and finance costs decreased by 24.3% YoY, respectively.
• Other income declined by 27.8% YoY.
• Net profit for the year grew by 47.1% YoY.
• Net profit margins during the year grew from 4.2% in FY18 to 6.1% in FY19.

PATEL ENGG. Income Statement 2018-19

PATEL ENGG. Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 38 billion as compared to Rs 34 billion in FY18, thereby witnessing an increase of 11.0%.
• Long-term debt down at Rs 13 billion as compared to Rs 13 billion during FY18, a fall of 2.1%.
• Current assets rose 11% and stood at Rs 48 billion, while fixed assets rose 22% and stood at Rs 16 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 82 billion as against Rs 74 billion during FY18, thereby witnessing a growth of 11%.

PATEL ENGG. Balance Sheet as on March 2019

PATEL ENGG. Cash Flow Statement Analysis

• PATEL ENGG.'s cash flow from operating activities (CFO) during FY19 stood at Rs 8 billion, an improvement of 107.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -5 billion, an improvement of 11% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -45 million from the Rs 704 million net cash flows seen during FY18.

PATEL ENGG. Cash Flow Statement 2018-19

Current Valuations for PATEL ENGG.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.4, an improvement from the EPS of Rs 6.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 10.7, stands at 0.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 0.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

Ratio Analysis for PATEL ENGG.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY19, from 1.3x 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 1.3x during FY19, from 1.5x 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 6.8% during FY19, from 4.9% 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 15.9% during FY19, from 16.7% 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 6.4% during FY19, from 8.0% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

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

PATEL ENGG. Share Price Performance

Over the last one year, PATEL ENGG. share price has moved down from Rs 29.0 to Rs 10.7, registering a loss of Rs 18.4 or around 63.3%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,045.1 (down 1.3%). Over the last one year it has moved up from 1,810.5 to 2,045.1, a gain of 235 points (up 13.0%).

Overall, the S&P BSE SENSEX is up 6.6% over the year.

(To know more, check out historical annual results for PATEL ENGG. and quarterly results for PATEL ENGG.)