PRISM JOHNSON 2018-19 Annual Report Analysis

Sun, 31 Mar

PRISM JOHNSON 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.

PRISM JOHNSON Income Statement Analysis

• Operating income during the year rose 15.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 32.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.6% in FY19 as against 8.3% in FY18.
• Depreciation charges increased by 8.5% and finance costs decreased by 2.9% YoY, respectively.
• Other income declined by 59.5% YoY.
• Net profit for the year grew by 103.1% YoY.
• Net profit margins during the year grew from 1.0% in FY18 to 1.7% in FY19.

PRISM JOHNSON Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	53,733	61,944	15.3%
Other income	Rs m	658	266	-59.5%
Total Revenues	Rs m	54,391	62,211	14.4%
Gross profit	Rs m	4,484	5,959	32.9%
Depreciation	Rs m	1,844	2,000	8.5%
Interest	Rs m	2,323	2,257	-2.9%
Profit before tax	Rs m	975	1,968	101.9%
Tax	Rs m	457	916	100.6%
Profit after tax	Rs m	518	1,052	103.1%
Gross profit margin	%	8.3	9.6
Effective tax rate	%	46.8	46.5
Net profit margin	%	1.0	1.7

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PRISM JOHNSON Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 24 billion as compared to Rs 24 billion in FY18, thereby witnessing an decrease of -0.2%.
• Long-term debt stood at Rs 12 billion as compared to Rs 12 billion during FY18, a growth of 2.0%.
• Current assets rose 10% and stood at Rs 19 billion, while fixed assets rose 3% and stood at Rs 35 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 54 billion as against Rs 51 billion during FY18, thereby witnessing a growth of 6%.

PRISM JOHNSON Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	10,379	11,261	8.5
Current Liabilities	Rs m	23,689	23,637	-0.2
Long-term Debt	Rs m	11,520	11,752	2.0
Total Liabilities	Rs m	51,382	54,308	5.7
Current assets	Rs m	17,361	19,151	10.3
Fixed Assets	Rs m	34,022	35,157	3.3
Total Assets	Rs m	51,382	54,308	5.7

PRISM JOHNSON Cash Flow Statement Analysis

• PRISM JOHNSON's cash flow from operating activities (CFO) during FY19 stood at Rs 7 billion, an improvement of 11.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -10 million from the Rs 4 million net cash flows seen during FY18.

PRISM JOHNSON 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	5,866	6,539	11.5%
Cash Flow from Investing Activities	Rs m	-4,066	-3,301	-
Cash Flow from Financing Activities	Rs m	-1,796	-3,247	-
Net Cash Flow	Rs m	4	-10	-

Current Valuations for PRISM JOHNSON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.1, an improvement from the EPS of Rs 1.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 95.9, stands at 33.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 15.6 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	106.7	123.1
TTM Earnings per share	Rs	1.0	2.1
Diluted earnings per share	Rs	1.0	2.1
Price to Cash Flow	x	23.2	15.6
TTM P/E ratio	x	77.7	33.1
Price / Book Value ratio	x	6.3	4.2
Market Cap	Rs m	64,908	47,555
Dividends per share (Unadj.)	Rs	0.0	0.5

Ratio Analysis for PRISM JOHNSON

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY19, from 0.7x 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 1.9x during FY19, from 1.4x 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 9.3% during FY19, from 5.0% 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 improved and stood at 18.4% during FY19, from 15.1% 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 6.1% during FY19, from 5.5% 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	0.7	0.8
Debtors’ Days	Days	5	4
Interest coverage	x	1.4	1.9
Debt to equity ratio	x	1.1	1.0
Return on assets	%	5.5	6.1
Return on equity	%	5.0	9.3
Return on capital employed	%	15.1	18.4

To see how PRISM JOHNSON has performed over the last 5 years, please visit here.

PRISM JOHNSON Share Price Performance

Over the last one year, PRISM JOHNSON share price has moved down from Rs 108.7 to Rs 95.9, registering a loss of Rs 12.8 or around 11.8%.

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

(To know more, check out historical annual results for PRISM JOHNSON and quarterly results for PRISM JOHNSON)

Read: Latest Annual Report Analysis of PRISM JOHNSON