RALLIS 2018-19 Annual Report Analysis

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RALLIS 2018-19 Annual Report Analysis
Fri, 7 Jun

RALLIS 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.

RALLIS Income Statement Analysis

  • Operating income during the year rose 10.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 8.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.1% in FY19 as against 14.8% in FY18.
  • Depreciation charges decreased by 0.5% and finance costs increased by 21.8% YoY, respectively.
  • Other income grew by 132.5% YoY.
  • Net profit for the year declined by 7.3% YoY.
  • Net profit margins during the year declined from 9.3% in FY18 to 7.7% in FY19.

RALLIS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 17,909 19,840 10.8%
Other income Rs m 132 307 132.5%
Total Revenues Rs m 18,041 20,146 11.7%
Gross profit Rs m 2,645 2,409 -8.9%
Depreciation Rs m 463 461 -0.5%
Interest Rs m 43 53 21.8%
Profit before tax Rs m 2,270 2,203 -3.0%
Tax Rs m 600 655 9.1%
Profit after tax Rs m 1,670 1,548 -7.3%
Gross profit margin % 14.8 12.1
Effective tax rate % 26.4 29.7
Net profit margin % 9.3 7.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RALLIS Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 8 billion as compared to Rs 7 billion in FY18, thereby witnessing an increase of 12.4%.
  • Long-term debt down at Rs 158 million as compared to Rs 199 million during FY18, a fall of 20.5%.
  • Current assets rose 14% and stood at Rs 14 billion, while fixed assets rose 3% and stood at Rs 6 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 22 billion as against Rs 20 billion during FY18, thereby witnessing a growth of 9%.

RALLIS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 11,906 12,859 8.0
 
Current Liabilities Rs m 7,244 8,142 12.4
Long-term Debt Rs m 199 158 -20.5
Total Liabilities Rs m 19,986 21,843 9.3
 
Current assets Rs m 12,411 14,132 13.9
Fixed Assets Rs m 6,154 6,315 2.6
Total Assets Rs m 19,986 21,843 9.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RALLIS Cash Flow Statement Analysis

  • RALLIS's cash flow from operating activities (CFO) during FY19 stood at Rs 801 million, an improvement of 93.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -515 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -515 million, an improvement of 51% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -229 million from the Rs 260 million net cash flows seen during FY18.

RALLIS 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 414 801 93.5%
Cash Flow from Investing Activities Rs m 888 -515 -
Cash Flow from Financing Activities Rs m -1,041 -515 -
Net Cash Flow Rs m 260 -229 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for RALLIS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.0, an decline from the EPS of Rs 8.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 152.5, stands at 19.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.8 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 92.1 102.0
TTM Earnings per share Rs 8.6 8.0
Diluted earnings per share Rs 8.6 8.0
Price to Cash Flow x 13.9 14.8
TTM P/E ratio x 19.2 19.2
Price / Book Value ratio x 4.0 3.0
Market Cap Rs m 29,657 29,657
Dividends per share (Unadj.) Rs 2.5 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for RALLIS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.7x during FY19, from 1.7x 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 deteriorated and stood at 43.0x during FY19, from 53.7x 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 declined and down at 12.0% during FY19, from 14.0% 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 declined and down at 17.3% during FY19, from 19.1% 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 declined and down at 7.3% during FY19, from 8.6% 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 1.7 1.7
Debtors’ Days Days 81 83
Interest coverage x 53.7 43.0
Debt to equity ratio x 0.0 0.0
Return on assets % 8.6 7.3
Return on equity % 14.0 12.0
Return on capital employed % 19.1 17.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

RALLIS Share Price Performance

Over the last one year, RALLIS share price has moved up from Rs 201.6 to Rs 152.5, registering a loss of Rs 49.1 or around 24.4%.

Overall, the S&P BSE SENSEX is up 12.5% over the year.

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

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RALLIS Announces Quarterly Results (3QFY21); Net Profit Up 19.9% (Quarterly Result Update)

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For the quarter ended December 2020, RALLIS has posted a net profit of Rs 456 m (up 19.9% YoY). Sales on the other hand came in at Rs 6 bn (up 6.9% YoY). Read on for a complete analysis of RALLIS's quarterly results.

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Here's an analysis of the annual report of RALLIS for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of RALLIS. Also includes updates on the valuation of RALLIS.

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