PC JEWELLER 2018-19 Annual Report Analysis

Sun, 31 Mar

PC JEWELLER 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.

PC JEWELLER Income Statement Analysis

• Operating income during the year fell 9.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 70.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.4% in FY19 as against 10.3% in FY18.
• Depreciation charges decreased by 11.9% and finance costs increased by 9.5% YoY, respectively.
• Other income declined by 8.0% YoY.
• Net profit for the year declined by 99.9% YoY.
• Net profit margins during the year declined from 5.6% in FY18 to 0.0% in FY19.

PC JEWELLER Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	96,085	86,800	-9.7%
Other income	Rs m	917	843	-8.0%
Total Revenues	Rs m	97,002	87,643	-9.6%
Gross profit	Rs m	9,899	2,908	-70.6%
Depreciation	Rs m	215	189	-11.9%
Interest	Rs m	3,236	3,542	9.5%
Profit before tax	Rs m	7,366	20	-99.7%
Tax	Rs m	2,009	14	-99.3%
Profit after tax	Rs m	5,356	6	-99.9%
Gross profit margin	%	10.3	3.4
Effective tax rate	%	27.3	69.5
Net profit margin	%	5.6	0.0

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

PC JEWELLER Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 37 billion as compared to Rs 51 billion in FY18, thereby witnessing an decrease of -27.5%.
• Long-term debt down at Rs 116 million as compared to Rs 295 million during FY18, a fall of 60.7%.
• Current assets fell 15% and stood at Rs 75 billion, while fixed assets fell 20% and stood at Rs 1 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 76 billion as against Rs 90 billion during FY18, thereby witnessing a fall of 15%.

PC JEWELLER Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	38,658	38,783	0.3
Current Liabilities	Rs m	50,672	36,720	-27.5
Long-term Debt	Rs m	295	116	-60.7
Total Liabilities	Rs m	89,599	76,026	-15.1
Current assets	Rs m	87,911	74,684	-15.0
Fixed Assets	Rs m	1,688	1,342	-20.5
Total Assets	Rs m	89,599	76,026	-15.1

PC JEWELLER Cash Flow Statement Analysis

• PC JEWELLER's cash flow from operating activities (CFO) during FY19 stood at Rs -19 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 10 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 7 billion, an improvement of 16,724% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -3 billion from the Rs -243 million net cash flows seen during FY18.

PC JEWELLER 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	3,576	-19,313	-
Cash Flow from Investing Activities	Rs m	-3,780	9,780	-
Cash Flow from Financing Activities	Rs m	-39	6,517	-
Net Cash Flow	Rs m	-243	-3,016	-

Current Valuations for PC JEWELLER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an decline from the EPS of Rs 13.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 82.5, stands at -1,356.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 379.9 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	243.6	219.9
TTM Earnings per share	Rs	13.6	0.0
Diluted earnings per share	Rs	11.5	0.0
Price to Cash Flow	x	26.7	379.9
TTM P/E ratio	x	26.2	-1,356.7
Price / Book Value ratio	x	4.1	1.9
Market Cap	Rs m	156,904	74,125
Dividends per share (Unadj.)	Rs	0.5	0.0

Ratio Analysis for PC JEWELLER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY19, from 1.7x 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 1.0x during FY19, from 3.3x 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 0.0% during FY19, from 13.9% 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 9.2% during FY19, from 27.2% 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 4.7% during FY19, from 9.6% 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	1.7	2.0
Debtors’ Days	Days	7	8
Interest coverage	x	3.3	1.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.6	4.7
Return on equity	%	13.9	0.0
Return on capital employed	%	27.2	9.2

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

PC JEWELLER Share Price Performance

Over the last one year, PC JEWELLER share price has moved down from Rs 319.7 to Rs 82.5, registering a loss of Rs 237.2 or around 74.2%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for PC JEWELLER and quarterly results for PC JEWELLER)

Read: Latest Annual Report Analysis of PC JEWELLER