PHILLIPS CARBON BLACK 2018-19 Annual Report Analysis

Sun, 31 Mar

PHILLIPS CARBON BLACK 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.

PHILLIPS CARBON BLACK Income Statement Analysis

• Operating income during the year rose 40.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 64.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.4% in FY19 as against 14.9% in FY18.
• Depreciation charges increased by 9.7% and finance costs decreased by 11.2% YoY, respectively.
• Other income declined by 32.9% YoY.
• Net profit for the year grew by 66.7% YoY.
• Net profit margins during the year grew from 9.2% in FY18 to 10.8% in FY19.

PHILLIPS CARBON BLACK Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	25,046	35,286	40.9%
Other income	Rs m	328	220	-32.9%
Total Revenues	Rs m	25,374	35,505	39.9%
Gross profit	Rs m	3,728	6,141	64.7%
Depreciation	Rs m	605	664	9.7%
Interest	Rs m	414	368	-11.2%
Profit before tax	Rs m	3,036	5,329	75.5%
Tax	Rs m	740	1,503	103.0%
Profit after tax	Rs m	2,296	3,827	66.7%
Gross profit margin	%	14.9	17.4
Effective tax rate	%	24.4	28.2
Net profit margin	%	9.2	10.8

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PHILLIPS CARBON BLACK Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 16 billion as compared to Rs 13 billion in FY18, thereby witnessing an increase of 17.5%.
• Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY18, a growth of 66.6%.
• Current assets rose 41% and stood at Rs 18 billion, while fixed assets rose 7% and stood at Rs 20 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 37 billion as against Rs 31 billion during FY18, thereby witnessing a growth of 21%.

PHILLIPS CARBON BLACK Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	13,776	16,499	19.8
Current Liabilities	Rs m	13,270	15,598	17.5
Long-term Debt	Rs m	1,643	2,736	66.6
Total Liabilities	Rs m	31,034	37,472	20.7
Current assets	Rs m	12,598	17,747	40.9
Fixed Assets	Rs m	18,436	19,725	7.0
Total Assets	Rs m	31,034	37,472	20.7

PHILLIPS CARBON BLACK Cash Flow Statement Analysis

• PHILLIPS CARBON BLACK's cash flow from operating activities (CFO) during FY19 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion, an improvement of 708.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -704 million, an improvement of 36% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -580 million from the Rs 1 billion net cash flows seen during FY18.

PHILLIPS CARBON BLACK 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	2,926	2,899	-0.9%
Cash Flow from Investing Activities	Rs m	-343	-2,775	-
Cash Flow from Financing Activities	Rs m	-1,099	-704	-
Net Cash Flow	Rs m	1,484	-580	-

Current Valuations for PHILLIPS CARBON BLACK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.2, an decline from the EPS of Rs 66.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 176.7, stands at 26.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 26.3 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	726.6	204.7
TTM Earnings per share	Rs	66.6	22.2
Diluted earnings per share	Rs	6.1	10.1
Price to Cash Flow	x	141.5	26.3
TTM P/E ratio	x	178.6	26.5
Price / Book Value ratio	x	2.4	7.2
Market Cap	Rs m	33,173	118,099
Dividends per share (Unadj.)	Rs	1.2	1.8

Ratio Analysis for PHILLIPS CARBON BLACK

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY19, from 0.9x 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 15.5x during FY19, from 8.3x 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 improved and stood at 23.2% during FY19, from 16.7% 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 29.6% during FY19, from 22.4% 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 11.2% during FY19, from 8.7% 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	0.9	1.1
Debtors’ Days	Days	761	675
Interest coverage	x	8.3	15.5
Debt to equity ratio	x	0.1	0.2
Return on assets	%	8.7	11.2
Return on equity	%	16.7	23.2
Return on capital employed	%	22.4	29.6

To see how PHILLIPS CARBON BLACK has performed over the last 5 years, please visit here.

PHILLIPS CARBON BLACK Share Price Performance

Over the last one year, PHILLIPS CARBON BLACK share price has moved down from Rs 1,087.3 to Rs 176.7, registering a loss of Rs 910.7 or around 83.8%.

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

(To know more, check out historical annual results for PHILLIPS CARBON BLACK and quarterly results for PHILLIPS CARBON BLACK)

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