PIDILITE INDUSTRIES 2018-19 Annual Report Analysis

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PIDILITE INDUSTRIES 2018-19 Annual Report Analysis
Fri, 12 Jul

PIDILITE INDUSTRIES 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.

PIDILITE INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 16.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 0.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.1% in FY19 as against 22.1% in FY18.
  • Depreciation charges increased by 10.7% and finance costs increased by 67.8% YoY, respectively.
  • Other income declined by 1.2% YoY.
  • Net profit for the year declined by 3.9% YoY.
  • Net profit margins during the year declined from 15.5% in FY18 to 12.8% in FY19.

PIDILITE INDUSTRIES Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 60,784 70,787 16.5%
Other income Rs m 1,484 1,466 -1.2%
Total Revenues Rs m 62,268 72,254 16.0%
Gross profit Rs m 13,460 13,538 0.6%
Depreciation Rs m 1,199 1,327 10.7%
Interest Rs m 155 261 67.8%
Profit before tax Rs m 13,590 13,416 -1.3%
Tax Rs m 3,927 4,132 5.2%
Profit after tax Rs m 9,661 9,284 -3.9%
Gross profit margin % 22.1 19.1
Effective tax rate % 28.9 30.8
Net profit margin % 15.5 12.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PIDILITE INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 16 billion as compared to Rs 15 billion in FY18, thereby witnessing an increase of 7.1%.
  • Long-term debt stood at Rs 85 million as compared to Rs 71 million during FY18, a growth of 19.7%.
  • Current assets rose 8% and stood at Rs 36 billion, while fixed assets rose 7% and stood at Rs 17 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 59 billion as against Rs 52 billion during FY18, thereby witnessing a growth of 14%.

PIDILITE INDUSTRIES Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 35,740 41,481 16.1
 
Current Liabilities Rs m 14,554 15,593 7.1
Long-term Debt Rs m 71 85 19.7
Total Liabilities Rs m 52,045 59,145 13.6
 
Current assets Rs m 33,088 35,820 8.3
Fixed Assets Rs m 15,950 17,142 7.5
Total Assets Rs m 52,045 59,145 13.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PIDILITE INDUSTRIES Cash Flow Statement Analysis

  • PIDILITE INDUSTRIES's cash flow from operating activities (CFO) during FY19 stood at Rs 8 billion, an improvement of 6.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -5 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -4 billion, an improvement of 54% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -183 million from the Rs 459 million net cash flows seen during FY18.

PIDILITE INDUSTRIES 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 7,964 8,448 6.1%
Cash Flow from Investing Activities Rs m 393 -5,131 -
Cash Flow from Financing Activities Rs m -7,898 -3,606 -
Net Cash Flow Rs m 459 -183 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for PIDILITE INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.3, an decline from the EPS of Rs 19.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,190.9, stands at 66.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 13.1 times, while the price to sales ratio stands at 7.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 57.5 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 119.7 139.4
TTM Earnings per share Rs 19.0 18.3
Diluted earnings per share Rs 18.8 18.1
Price to Cash Flow x 55.7 57.5
TTM P/E ratio x 65.4 66.0
Price / Book Value ratio x 11.8 13.1
Market Cap Rs m 604,726 610,501
Dividends per share (Unadj.) Rs 6.0 6.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for PIDILITE INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.3x during FY19, from 2.3x 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 52.5x during FY19, from 88.4x 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 22.4% during FY19, from 27.0% 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 32.9% during FY19, from 38.4% 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 declined and down at 16.1% during FY19, from 18.9% 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 2.3 2.3
Debtors’ Days Days 56 54
Interest coverage x 88.4 52.5
Debt to equity ratio x 0.0 0.0
Return on assets % 18.9 16.1
Return on equity % 27.0 22.4
Return on capital employed % 38.4 32.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how PIDILITE INDUSTRIES has performed over the last 5 years, please visit here.

PIDILITE INDUSTRIES Share Price Performance

Over the last one year, PIDILITE INDUSTRIES share price has moved up from Rs 1,086.2 to Rs 1,190.9, registering a gain of Rs 104.7 or around 9.6%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,257.9 (up 0.2%). Over the last one year it has moved down from 11,586.7 to 11,257.9, a loss of 329 points (down 2.8%).

Overall, the S&P BSE SENSEX is up 7.5% over the year.

(To know more, check out historical annual results for PIDILITE INDUSTRIES and quarterly results for PIDILITE INDUSTRIES)

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PIDILITE INDUSTRIES Announces Quarterly Results (1QFY20); Net Profit Up 22.4% (Quarterly Result Update)

Aug 8, 2019 | Updated on Aug 8, 2019

For the quarter ended June 2019, PIDILITE INDUSTRIES has posted a net profit of Rs 3 bn (up 22.4% YoY). Sales on the other hand came in at Rs 20 bn (up 10.0% YoY). Read on for a complete analysis of PIDILITE INDUSTRIES's quarterly results.

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May 16, 2019 | Updated on May 16, 2019

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PIDILITE INDUSTRIES 2017-18 Annual Report Analysis (Annual Result Update)

Aug 13, 2018 | Updated on Aug 13, 2018

Here's an analysis of the annual report of PIDILITE INDUSTRIES for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of PIDILITE INDUSTRIES. Also includes updates on the valuation of PIDILITE INDUSTRIES.

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