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P&G HYGIENE 2019-20 Annual Report Analysis
Tue, 30 Jun

P&G HYGIENE has announced its results for the year ended June 2020. Let us have a look at the detailed performance review of the company during FY19-20.

P&G HYGIENE Income Statement Analysis

  • Operating income during the year rose 1.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 0.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.1% in FY as against 20.6% in FY.
  • Depreciation charges decreased by 3.8% and finance costs increased by 10.8% YoY, respectively.
  • Other income declined by 20.0% YoY.
  • Net profit for the year grew by 3.3% YoY.
  • Net profit margins during the year grew from 14.2% in FY to 14.4% in FY.

P&G HYGIENE Income Statement 2019-20

No. of Mths Year Ending 12 Jun-19* 12 Jun-20* % Change
Net Sales Rs m 29,469 30,020 1.9%
Other income Rs m 552 441 -20.0%
Total Revenues Rs m 30,020 30,461 1.5%
Gross profit Rs m 6,074 6,037 -0.6%
Depreciation Rs m 498 479 -3.8%
Interest Rs m 55 61 10.8%
Profit before tax Rs m 6,073 5,939 -2.2%
Tax Rs m 1,882 1,608 -14.6%
Profit after tax Rs m 4,191 4,331 3.3%
Gross profit margin % 20.6 20.1
Effective tax rate % 31.0 27.1
Net profit margin % 14.2 14.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

P&G HYGIENE Balance Sheet Analysis

  • The company's current liabilities during FY down at Rs 6 billion as compared to Rs 6 billion in FY, thereby witnessing an decrease of -7.4%.
  • Current assets rose 22% and stood at Rs 13 billion, while fixed assets fell 4% and stood at Rs 5 billion in FY.
  • Overall, the total assets and liabilities for FY stood at Rs 18 billion as against Rs 16 billion during FY, thereby witnessing a growth of 14%.

P&G HYGIENE Balance Sheet as on June 2020

No. of Mths Year Ending 12 Jun-19* 12 Jun-20* % Change
Networth Rs m 8,916 11,351 27.3
 
Current Liabilities Rs m 6,425 5,951 -7.4
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 15,803 17,988 13.8
 
Current assets Rs m 10,901 13,284 21.9
Fixed Assets Rs m 4,902 4,704 -4.0
Total Assets Rs m 15,803 17,988 13.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



P&G HYGIENE Cash Flow Statement Analysis

  • P&G HYGIENE's cash flow from operating activities (CFO) during FY stood at Rs 5 billion, an improvement of 14.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY stood at Rs 747 million, an improvement of 117.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY stood at Rs -2 billion, an improvement of 39% on a YoY basis.
  • Overall, net cash flows for the company during FY stood at Rs 4 billion from the Rs 1 billion net cash flows seen during FY.

P&G HYGIENE Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Jun-19 Jun-20
Cash Flow from Operating Activities Rs m 4,130 4,738 14.7%
Cash Flow from Investing Activities Rs m 343 747 117.7%
Cash Flow from Financing Activities Rs m -3,137 -1,903 -
Net Cash Flow Rs m 1,336 3,581 168.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for P&G HYGIENE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 133.4, an improvement from the EPS of Rs 129.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 10,155.1, stands at 76.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 29.0 times, while the price to sales ratio stands at 11.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 71.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Jun-19* 12 Jun-20*
Sales per share (Unadj.) Rs 907.8 924.8
TTM Earnings per share Rs 129.1 133.4
Diluted earnings per share Rs 129.1 133.4
Price to Cash Flow x 74.1 71.5
TTM P/E ratio x 82.9 76.1
Price / Book Value ratio x 36.2 30.3
Market Cap Rs m 323,049 344,082
Dividends per share (Unadj.) Rs 88.0 105.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for P&G HYGIENE

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.2x during FY, from 1.7x during FY. 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 98.8x during FY, from 111.8x during FY. 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 38.2% during FY, from 47.0% during FY. 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 52.9% during FY, from 68.7% during FY. 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 24.4% during FY, from 26.9% during FY. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Jun-19* 12 Jun-20*
Current ratio x 1.7 2.2
Debtors’ Days Days 225 202
Interest coverage x 111.8 98.8
Debt to equity ratio x 0.0 0.0
Return on assets % 26.9 24.4
Return on equity % 47.0 38.2
Return on capital employed % 68.7 52.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how P&G HYGIENE has performed over the last 5 years, please visit here.

P&G HYGIENE Share Price Performance

Over the last one year, P&G HYGIENE share price has moved down from Rs 10,745.9 to Rs 10,447.3, registering a loss of Rs 298.6 or around 2.8%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 10,254.9 (up 5.8%). Over the last one year it has moved down from 11,741.5 to 10,254.9, a loss of 1,487 points (down 12.7%).

Overall, the S&P BSE SENSEX is down 24.2% over the year.

(To know more, check out historical annual results for P&G HYGIENE and quarterly results for P&G HYGIENE)

Annual Report FAQs

What is the current share price of P&G HYGIENE?

P&G HYGIENE currently trades at Rs 16,887.0 per share. You can check out the latest share price performance of P&G HYGIENE here...

What was the revenue of P&G HYGIENE in FY? How does it compare to earlier years?

The revenues of P&G HYGIENE stood at Rs 30,461 m in FY, which was up 1.5% compared to Rs 30,020 m reported in FY.

P&G HYGIENE's revenue has grown from Rs 22,892 m in FY to Rs 30,461 m in FY.

Over the past 5 years, the revenue of P&G HYGIENE has grown at a CAGR of 7.4%.

What was the net profit of P&G HYGIENE in FY? How does it compare to earlier years?

The net profit of P&G HYGIENE stood at Rs 4,331 m in FY, which was up 3.3% compared to Rs 4,191 m reported in FY.

This compares to a net profit of Rs 3,746 m in FY and a net profit of Rs 4,327 m in FY.

Over the past 5 years, P&G HYGIENE net profit has grown at a CAGR of 0.6%.

What does the cash flow statement of P&G HYGIENE reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of P&G HYGIENE reveals:

  • Cash flow from operations increased in FY and stood at Rs 4,738 m as compared to Rs 4,130 m in FY.
  • Cash flow from investments increased in FY and stood at Rs 747 m as compared to Rs 343 m in FY.
  • Cash flow from financial activity increased in FY and stood at Rs -1,903 m as compared to Rs -3,137 m in FY.

Here's the cash flow statement of P&G HYGIENE for the past 5 years.

(Rs m)FYFYFYFYFY
From Operations3,5254,4534,1554,1304,738
From Investments2,2111,493-195343747
From Financial Activity-1,217-15,587-1,061-3,137-1,903
Net Cashflow4,518-9,6422,8991,3363,581

What does the Key Ratio analysis of P&G HYGIENE reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of P&G HYGIENE reveals:

  • Operating profit margins witnessed a fall and stood at 20.1% in FY as against 20.6% in FY.
  • Net profit margins grew from 14.2% in FY to 14.4% in FY.
  • Debt to Equity ratio for FY stood at 0.0 as compared to 0.0 in FY.

Here's the ratio/financial analysis of P&G HYGIENE for the past 5 years.

 FYFYFYFYFY
Operating Profit Margin (%)27.529.825.120.620.1
Net Profit Margin (%)19.219.515.314.214.4
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of P&G HYGIENE

 

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