NAVIN FLUORINE 2018-19 Annual Report Analysis

Sun, 31 Mar

NAVIN FLUORINE 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.

NAVIN FLUORINE Income Statement Analysis

• Operating income during the year rose 10.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.9% in FY19 as against 23.9% in FY18.
• Depreciation charges decreased by 30.8% and finance costs decreased by 30.7% YoY, respectively.
• Other income declined by 62.8% YoY.
• Net profit for the year declined by 19.2% YoY.
• Net profit margins during the year declined from 20.3% in FY18 to 14.8% in FY19.

NAVIN FLUORINE Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	9,000	9,959	10.7%
Other income	Rs m	925	344	-62.8%
Total Revenues	Rs m	9,926	10,303	3.8%
Gross profit	Rs m	2,150	2,184	1.6%
Depreciation	Rs m	398	275	-30.8%
Interest	Rs m	12	8	-30.7%
Profit before tax	Rs m	2,665	2,244	-15.8%
Tax	Rs m	840	770	-8.4%
Profit after tax	Rs m	1,825	1,474	-19.2%
Gross profit margin	%	23.9	21.9
Effective tax rate	%	31.5	34.3
Net profit margin	%	20.3	14.8

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NAVIN FLUORINE Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 4 billion as compared to Rs 4 billion in FY18, thereby witnessing an increase of 9.4%.
• Current assets rose 9% and stood at Rs 8 billion, while fixed assets rose 6% and stood at Rs 9 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 17 billion as against Rs 16 billion during FY18, thereby witnessing a growth of 8%.

NAVIN FLUORINE Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	9,814	10,703	9.1
Current Liabilities	Rs m	3,896	4,261	9.4
Long-term Debt	Rs m	42	0	-100.0
Total Liabilities	Rs m	16,261	17,496	7.6
Current assets	Rs m	7,432	8,100	9.0
Fixed Assets	Rs m	8,829	9,396	6.4
Total Assets	Rs m	16,261	17,496	7.6

NAVIN FLUORINE Cash Flow Statement Analysis

• NAVIN FLUORINE's cash flow from operating activities (CFO) during FY19 stood at Rs 902 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -243 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -683 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -25 million from the Rs -59 million net cash flows seen during FY18.

NAVIN FLUORINE 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	1,694	902	-46.8%
Cash Flow from Investing Activities	Rs m	-1,363	-243	-
Cash Flow from Financing Activities	Rs m	-390	-683	-
Net Cash Flow	Rs m	-59	-25	-

Current Valuations for NAVIN FLUORINE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.8, an decline from the EPS of Rs 37.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 711.2, stands at 23.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 19.8 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	182.4	201.4
TTM Earnings per share	Rs	37.0	29.8
Diluted earnings per share	Rs	36.8	29.8
Price to Cash Flow	x	17.2	19.8
TTM P/E ratio	x	21.3	23.7
Price / Book Value ratio	x	10.2	3.2
Market Cap	Rs m	99,812	34,728
Dividends per share (Unadj.)	Rs	10.0	7.8

Ratio Analysis for NAVIN FLUORINE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY19, from 1.9x 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 272.4x during FY19, from 224.4x 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 13.8% during FY19, from 18.6% 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 21.0% 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 8.5% during FY19, from 11.3% 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	1.9	1.9
Debtors’ Days	Days	631	633
Interest coverage	x	224.4	272.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.3	8.5
Return on equity	%	18.6	13.8
Return on capital employed	%	27.2	21.0

To see how NAVIN FLUORINE has performed over the last 5 years, please visit here.

NAVIN FLUORINE Share Price Performance

Over the last one year, NAVIN FLUORINE share price has moved down from Rs 770.9 to Rs 711.2, registering a loss of Rs 59.8 or around 7.8%.

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

(To know more, check out historical annual results for NAVIN FLUORINE and quarterly results for NAVIN FLUORINE)

Read: Latest Annual Report Analysis of NAVIN FLUORINE