PRAJ IND.LTD 2018-19 Annual Report Analysis

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PRAJ IND.LTD 2018-19 Annual Report Analysis
Thu, 19 Sep

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 24.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 54.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.0% in FY19 as against 5.6% in FY18.
  • Depreciation charges decreased by 4.7% and finance costs decreased by 33.3% YoY, respectively.
  • Other income grew by 20.9% YoY.
  • Net profit for the year grew by 72.7% YoY.
  • Net profit margins during the year grew from 4.2% in FY18 to 5.8% 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 9,166 11,411 24.5%
Other income Rs m 267 323 20.9%
Total Revenues Rs m 9,433 11,734 24.4%
Gross profit Rs m 515 793 54.0%
Depreciation Rs m 241 230 -4.7%
Interest Rs m 11 8 -33.3%
Profit before tax Rs m 530 879 65.9%
Tax Rs m 135 197 45.9%
Profit after tax Rs m 395 682 72.7%
Gross profit margin % 5.6 7.0
Effective tax rate % 25.5 22.4
Net profit margin % 4.2 5.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 fell 3% and stood at Rs 3 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 7,261 7,450 2.6
 
Current Liabilities Rs m 3,906 4,854 24.3
Long-term Debt Rs m 0 0 -100.0
Total Liabilities Rs m 11,333 12,470 10.0
 
Current assets Rs m 7,901 8,607 8.9
Fixed Assets Rs m 3,013 2,922 -3.0
Total Assets Rs m 11,333 12,470 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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



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 114.7, stands at 28.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 1.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 23.3 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 50.7 62.5
TTM Earnings per share Rs 2.2 3.7
Diluted earnings per share Rs 2.1 3.7
Price to Cash Flow x 32.6 23.3
TTM P/E ratio x 28.2 28.8
Price / Book Value ratio x 2.4 2.9
Market Cap Rs m 20,753 21,194
Dividends per share (Unadj.) Rs 1.6 0.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 116.7x during FY19, from 47.5x 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 5.4% 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 5.5% 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 105 98
Interest coverage x 47.5 116.7
Debt to equity ratio x 0.0 0.0
Return on assets % 3.6 5.5
Return on equity % 5.4 9.2
Return on capital employed % 7.5 11.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 103.2 to Rs 114.7, registering a gain of Rs 11.5 or around 11.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 16,779.3 (down 1.1%). Over the last one year it has moved down from 18,168.6 to 16,779.3, a loss of 1,389 points (down 7.6%).

Overall, the S&P BSE SENSEX is down 2.8% over the year.

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

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For the quarter ended September 2019, PRAJ IND.LTD has posted a net profit of Rs 161 m (up 80.4% YoY). Sales on the other hand came in at Rs 3 bn (up 17.2% YoY). Read on for a complete analysis of PRAJ IND.LTD's quarterly results.

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