Markets will remain closed on April 17, 2024 on account of Ram Navami.

PRAJ IND.LTD 2018-19 Annual Report Analysis

Sun, 31 Mar

PRAJ IND.LTD 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.

PRAJ IND.LTD Income Statement Analysis

• Operating income during the year rose 12.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 65.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.4% in FY19 as against 5.0% in FY18.
• Depreciation charges decreased by 4.7% and finance costs decreased by 33.2% YoY, respectively.
• Other income grew by 7.0% YoY.
• Net profit for the year grew by 72.7% YoY.
• Net profit margins during the year grew from 4.1% in FY18 to 6.3% in FY19.

PRAJ IND.LTD Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	9,568	10,762	12.5%
Other income	Rs m	302	324	7.0%
Total Revenues	Rs m	9,870	11,085	12.3%
Gross profit	Rs m	480	793	65.1%
Depreciation	Rs m	241	230	-4.7%
Interest	Rs m	11	8	-33.2%
Profit before tax	Rs m	530	879	65.9%
Tax	Rs m	135	197	45.8%
Profit after tax	Rs m	395	682	72.7%
Gross profit margin	%	5.0	7.4
Effective tax rate	%	25.5	22.4
Net profit margin	%	4.1	6.3

For You: Midcap Stocks Research at Less than Its Launch Price

PRAJ IND.LTD Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 5 billion as compared to Rs 4 billion in FY18, thereby witnessing an increase of 24.3%.
• Current assets rose 9% and stood at Rs 9 billion, while fixed assets rose 11% and stood at Rs 4 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 12 billion as against Rs 11 billion during FY18, thereby witnessing a growth of 10%.

PRAJ IND.LTD Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	7,220	7,425	2.8
Current Liabilities	Rs m	3,906	4,854	24.3
Long-term Debt	Rs m	0	0	-100.0
Total Liabilities	Rs m	11,292	12,376	9.6
Current assets	Rs m	7,901	8,607	8.9
Fixed Assets	Rs m	3,391	3,769	11.2
Total Assets	Rs m	11,292	12,376	9.6

PRAJ IND.LTD Cash Flow Statement Analysis

• PRAJ IND.LTD's cash flow from operating activities (CFO) during FY19 stood at Rs 330 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -59 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -434 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -137 million from the Rs 80 million net cash flows seen during FY18.

PRAJ IND.LTD 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	1,014	330	-67.5%
Cash Flow from Investing Activities	Rs m	-707	-59	-
Cash Flow from Financing Activities	Rs m	-247	-434	-
Net Cash Flow	Rs m	80	-137	-

Current Valuations for PRAJ IND.LTD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.7, an improvement from the EPS of Rs 2.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 155.2, stands at 41.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 24.1 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	52.9	58.9
TTM Earnings per share	Rs	2.2	3.7
Diluted earnings per share	Rs	2.1	3.7
Price to Cash Flow	x	23.2	24.1
TTM P/E ratio	x	37.4	41.8
Price / Book Value ratio	x	2.4	3.0
Market Cap	Rs m	17,415	21,963
Dividends per share (Unadj.)	Rs	1.6	2.1

Ratio Analysis for PRAJ IND.LTD

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY19, from 2.0x 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 116.2x during FY19, from 47.4x 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 improved and stood at 9.2% during FY19, from 5.5% 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 11.9% during FY19, from 7.5% 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 5.6% during FY19, from 3.6% 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	2.0	1.8
Debtors’ Days	Days	100	104
Interest coverage	x	47.4	116.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.6	5.6
Return on equity	%	5.5	9.2
Return on capital employed	%	7.5	11.9

To see how PRAJ IND.LTD has performed over the last 5 years, please visit here.

PRAJ IND.LTD Share Price Performance

Over the last one year, PRAJ IND.LTD share price has moved up from Rs 80.4 to Rs 155.2, registering a gain of Rs 74.8 or around 93.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

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

(To know more, check out historical annual results for PRAJ IND.LTD and quarterly results for PRAJ IND.LTD)

Read: Latest Annual Report Analysis of PRAJ IND.LTD