PIDILITE INDUSTRIES 2019-20 Annual Report Analysis

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PIDILITE INDUSTRIES 2019-20 Annual Report Analysis
Wed, 9 Dec

PIDILITE INDUSTRIES has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

PIDILITE INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 3.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 12.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.9% in FY20 as against 19.1% in FY19.
  • Depreciation charges increased by 28.0% and finance costs increased by 28.9% YoY, respectively.
  • Other income grew by 1.9% YoY.
  • Net profit for the year grew by 20.9% YoY.
  • Net profit margins during the year grew from 12.8% in FY19 to 15.1% in FY20.

PIDILITE INDUSTRIES Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 70,787 72,945 3.0%
Other income Rs m 1,466 1,494 1.9%
Total Revenues Rs m 72,254 74,439 3.0%
Gross profit Rs m 13,538 15,239 12.6%
Depreciation Rs m 1,327 1,699 28.0%
Interest Rs m 261 336 28.9%
Profit before tax Rs m 13,416 14,698 9.6%
Tax Rs m 4,132 3,477 -15.9%
Profit after tax Rs m 9,284 11,221 20.9%
Gross profit margin % 19.1 20.9
Effective tax rate % 30.8 23.7
Net profit margin % 12.8 15.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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PIDILITE INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 19 billion as compared to Rs 16 billion in FY19, thereby witnessing an increase of 19.6%.
  • Long-term debt stood at Rs 251 million as compared to Rs 85 million during FY19, a growth of 195.3%.
  • Current assets rose 5% and stood at Rs 38 billion, while fixed assets rose 21% and stood at Rs 21 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 65 billion as against Rs 59 billion during FY19, thereby witnessing a growth of 11%.

PIDILITE INDUSTRIES Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 41,481 44,556 7.4
 
Current Liabilities Rs m 15,593 18,644 19.6
Long-term Debt Rs m 85 251 195.3
Total Liabilities Rs m 59,145 65,357 10.5
 
Current assets Rs m 35,820 37,610 5.0
Fixed Assets Rs m 17,142 20,713 20.8
Total Assets Rs m 59,145 65,357 10.5
* 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 FY20 stood at Rs 13 billion, an improvement of 51.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs 1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -8 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 5 billion from the Rs -183 million net cash flows seen during FY19.

PIDILITE INDUSTRIES Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 8,448 12,796 51.5%
Cash Flow from Investing Activities Rs m -5,131 1,029 -
Cash Flow from Financing Activities Rs m -3,606 -8,492 -
Net Cash Flow Rs m -183 5,335 -
* 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 22.1, an improvement from the EPS of Rs 18.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,618.5, stands at 95.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 16.0 times, while the price to sales ratio stands at 9.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 64.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 139.4 143.6
TTM Earnings per share Rs 18.3 22.1
Diluted earnings per share Rs 18.1 21.9
Price to Cash Flow x 77.5 64.2
TTM P/E ratio x 94.3 95.1
Price / Book Value ratio x 13.1 16.0
Market Cap Rs m 822,140 829,715
Dividends per share (Unadj.) Rs 6.5 7.0
* 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 deteriorated and stood at 2.0x during FY20, from 2.3x during FY19. 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 44.7x during FY20, from 52.5x during FY19. 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 25.2% during FY20, from 22.4% during FY20. 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 33.6% during FY20, from 32.9% during FY19. 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 17.7% during FY20, from 16.1% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 2.3 2.0
Debtors’ Days Days 54 54
Interest coverage x 52.5 44.7
Debt to equity ratio x 0.0 0.0
Return on assets % 16.1 17.7
Return on equity % 22.4 25.2
Return on capital employed % 32.9 33.6
* 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 1,327.8 to Rs 1,618.5, registering a gain of Rs 290.7 or around 21.9%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 12,255.8 (up 1.0%). Over the last one year it has moved up from 11,508.5 to 12,255.8, a gain of 747 points (up 6.5%).

Overall, the S&P BSE SENSEX is up 13.9% 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 (3QFY21); Net Profit Up 29.1% (Quarterly Result Update)

Feb 1, 2021 | Updated on Feb 1, 2021

For the quarter ended December 2020, PIDILITE INDUSTRIES has posted a net profit of Rs 4 bn (up 29.1% YoY). Sales on the other hand came in at Rs 23 bn (up 19.3% YoY). Read on for a complete analysis of PIDILITE INDUSTRIES's quarterly results.

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PIDILITE INDUSTRIES 2018-19 Annual Report Analysis (Annual Result Update)

Jul 12, 2019 | Updated on Jul 12, 2019

Here's an analysis of the annual report of PIDILITE INDUSTRIES for 2018-19. 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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