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PURAVANKARA 2018-19 Annual Report Analysis

Sun, 31 Mar

PURAVANKARA 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.

PURAVANKARA Income Statement Analysis

• Operating income during the year rose 44.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 43.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.5% in FY19 as against 21.7% in FY18.
• Depreciation charges increased by 0.7% and finance costs increased by 30.5% YoY, respectively.
• Other income declined by 15.3% YoY.
• Net profit for the year grew by 22.1% YoY.
• Net profit margins during the year declined from 6.7% in FY18 to 5.7% in FY19.

PURAVANKARA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	14,149	20,505	44.9%
Other income	Rs m	900	762	-15.3%
Total Revenues	Rs m	15,049	21,267	41.3%
Gross profit	Rs m	3,075	4,404	43.2%
Depreciation	Rs m	150	151	0.7%
Interest	Rs m	2,513	3,280	30.5%
Profit before tax	Rs m	1,312	1,735	32.2%
Tax	Rs m	361	574	58.9%
Profit after tax	Rs m	951	1,161	22.1%
Gross profit margin	%	21.7	21.5
Effective tax rate	%	27.5	33.1
Net profit margin	%	6.7	5.7

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PURAVANKARA Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 64 billion as compared to Rs 43 billion in FY18, thereby witnessing an increase of 49.6%.
• Long-term debt stood at Rs 4 billion as compared to Rs 1 billion during FY18, a growth of 215.5%.
• Current assets rose 26% and stood at Rs 76 billion, while fixed assets rose 8% and stood at Rs 11 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 87 billion as against Rs 71 billion during FY18, thereby witnessing a growth of 23%.

PURAVANKARA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	23,932	18,568	-22.4
Current Liabilities	Rs m	42,850	64,095	49.6
Long-term Debt	Rs m	1,380	4,354	215.5
Total Liabilities	Rs m	70,520	86,965	23.3
Current assets	Rs m	60,065	75,712	26.0
Fixed Assets	Rs m	10,455	11,254	7.6
Total Assets	Rs m	70,520	86,965	23.3

PURAVANKARA Cash Flow Statement Analysis

• PURAVANKARA's cash flow from operating activities (CFO) during FY19 stood at Rs -1 billion, an improvement of 351.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 47 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 2 billion, an improvement of 1,384% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 341 million from the Rs 376 million net cash flows seen during FY18.

PURAVANKARA 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	-290	-1,309	-
Cash Flow from Investing Activities	Rs m	558	47	-91.6%
Cash Flow from Financing Activities	Rs m	108	1,603	1,384.2%
Net Cash Flow	Rs m	376	341	-9.3%

Current Valuations for PURAVANKARA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.9, an improvement from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 73.8, stands at 15.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 20.2 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	59.7	86.4
TTM Earnings per share	Rs	4.0	4.9
Diluted earnings per share	Rs	4.0	4.9
Price to Cash Flow	x	29.9	20.2
TTM P/E ratio	x	36.4	15.1
Price / Book Value ratio	x	1.2	1.4
Market Cap	Rs m	28,405	26,472
Dividends per share (Unadj.)	Rs	1.6	1.0

Ratio Analysis for PURAVANKARA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY19, from 1.4x 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 1.5x during FY19, from 1.5x 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 6.3% during FY19, from 4.0% 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 21.9% 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 5.1% during FY19, from 4.9% 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	1.4	1.2
Debtors’ Days	Days	7	4
Interest coverage	x	1.5	1.5
Debt to equity ratio	x	0.1	0.2
Return on assets	%	4.9	5.1
Return on equity	%	4.0	6.3
Return on capital employed	%	15.1	21.9

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

PURAVANKARA Share Price Performance

Over the last one year, PURAVANKARA share price has moved down from Rs 138.9 to Rs 73.8, registering a loss of Rs 65.1 or around 46.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,077.1 (up 0.6%). Over the last one year it has moved down from 2,229.9 to 2,077.1, a loss of 153 points (down 6.9%).

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

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

Read: Latest Annual Report Analysis of PURAVANKARA