PHILLIPS CARBON BLACK 2018-19 Annual Report Analysis

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PHILLIPS CARBON BLACK 2018-19 Annual Report Analysis
Tue, 24 Sep

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 37.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 63.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.5% in FY19 as against 14.7% in FY18.
  • Depreciation charges increased by 9.7% and finance costs decreased by 11.2% YoY, respectively.
  • Other income declined by 30.8% YoY.
  • Net profit for the year grew by 66.7% YoY.
  • Net profit margins during the year grew from 8.9% 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 25,579 35,286 37.9%
Other income Rs m 288 199 -30.8%
Total Revenues Rs m 25,867 35,485 37.2%
Gross profit Rs m 3,768 6,162 63.5%
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 % 14.7 17.5
Effective tax rate % 24.4 28.2
Net profit margin % 8.9 10.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PHILLIPS CARBON BLACK Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 12 billion as compared to Rs 11 billion in FY18, thereby witnessing an increase of 9.8%.
  • Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY18, a growth of 64.8%.
  • Current assets rose 38% and stood at Rs 14 billion, while fixed assets rose 14% and stood at Rs 17 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 34 billion as against Rs 29 billion during FY18, thereby witnessing a growth of 18%.

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 10,950 12,027 9.8
Long-term Debt Rs m 1,643 2,707 64.8
Total Liabilities Rs m 28,714 33,871 18.0
 
Current assets Rs m 10,278 14,147 37.6
Fixed Assets Rs m 14,660 16,753 14.3
Total Assets Rs m 28,714 33,871 18.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for PHILLIPS CARBON BLACK

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 111.0, an improvement from the EPS of Rs 66.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 135.5, stands at 6.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.2 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 742.1 1,023.7
TTM Earnings per share Rs 66.6 111.0
Diluted earnings per share Rs 13.3 22.2
Price to Cash Flow x 1.6 5.2
TTM P/E ratio x 1.3 6.6
Price / Book Value ratio x 2.4 1.4
Market Cap Rs m 4,671 23,351
Dividends per share (Unadj.) Rs 6.0 3.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for PHILLIPS CARBON BLACK

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x 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 29.7% 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 12.4% during FY19, from 9.4% 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 1.2
Debtors’ Days Days 74 68
Interest coverage x 8.3 15.5
Debt to equity ratio x 0.1 0.2
Return on assets % 9.4 12.4
Return on equity % 16.7 23.2
Return on capital employed % 22.4 29.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 217.7 to Rs 135.5, registering a loss of Rs 82.2 or around 37.8%.

Overall, the S&P BSE SENSEX is up 8.0% 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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PHILLIPS CARBON BLACK Announces Quarterly Results (2QFY20); Net Profit Down 28.6% (Quarterly Result Update)

Nov 6, 2019 | Updated on Nov 6, 2019

For the quarter ended September 2019, PHILLIPS CARBON BLACK has posted a net profit of Rs 770 m (down 28.6% YoY). Sales on the other hand came in at Rs 9 bn (down 2.0% YoY). Read on for a complete analysis of PHILLIPS CARBON BLACK's quarterly results.

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Jul 22, 2019 | Updated on Jul 22, 2019

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