PATEL ENGG. 2018-19 Annual Report Analysis

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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

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 22,746 23,622 3.9%
Other income Rs m 2,426 1,751 -27.8%
Total Revenues Rs m 25,172 25,373 0.8%
Gross profit Rs m 5,308 3,549 -33.1%
Depreciation Rs m 543 502 -7.5%
Interest Rs m 4,894 3,703 -24.3%
Profit before tax Rs m 2,297 1,095 -52.3%
Tax Rs m -113 445 -494.8%
Profit after tax Rs m 1,048 1,541 47.1%
Gross profit margin % 23.3 15.0
Effective tax rate % -4.9 40.6
Net profit margin % 4.2 6.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 21,598 22,767 5.4
 
Current Liabilities Rs m 34,238 37,999 11.0
Long-term Debt Rs m 13,324 13,048 -2.1
Total Liabilities Rs m 74,145 82,006 10.6
 
Current assets Rs m 43,776 48,401 10.6
Fixed Assets Rs m 13,484 16,412 21.7
Total Assets Rs m 74,145 82,006 10.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 4,034 8,357 107.2%
Cash Flow from Investing Activities Rs m 2,446 -3,274 -
Cash Flow from Financing Activities Rs m -5,775 -5,127 -
Net Cash Flow Rs m 704 -45 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 144.9 143.8
TTM Earnings per share Rs 6.7 9.4
Diluted earnings per share Rs 13.6 20.1
Price to Cash Flow x 1.1 0.4
TTM P/E ratio x 1.6 0.8
Price / Book Value ratio x 0.6 0.3
Market Cap Rs m 1,672 818
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.3 1.3
Debtors’ Days Days 39 3,548
Interest coverage x 1.5 1.3
Debt to equity ratio x 0.6 0.6
Return on assets % 8.0 6.4
Return on equity % 4.9 6.8
Return on capital employed % 16.7 15.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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.)

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