RICO AUTO 2018-19 Annual Report Analysis

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RICO AUTO 2018-19 Annual Report Analysis
Mon, 16 Sep

RICO AUTO 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.

RICO AUTO Income Statement Analysis

  • Operating income during the year rose 15.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 9.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.3% in FY19 as against 10.8% in FY18.
  • Depreciation charges increased by 7.1% and finance costs increased by 43.0% YoY, respectively.
  • Other income grew by 20.1% YoY.
  • Net profit for the year declined by 12.0% YoY.
  • Net profit margins during the year declined from 4.7% in FY18 to 3.6% in FY19.

RICO AUTO Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 12,093 13,927 15.2%
Other income Rs m 162 194 20.1%
Total Revenues Rs m 12,255 14,121 15.2%
Gross profit Rs m 1,311 1,437 9.6%
Depreciation Rs m 539 577 7.1%
Interest Rs m 187 268 43.0%
Profit before tax Rs m 746 786 5.3%
Tax Rs m 121 211 74.2%
Profit after tax Rs m 580 510 -12.0%
Gross profit margin % 10.8 10.3
Effective tax rate % 16.2 26.9
Net profit margin % 4.7 3.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RICO AUTO 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 21.0%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 631 million during FY18, a growth of 161.1%.
  • Current assets rose 21% and stood at Rs 5 billion, while fixed assets rose 27% and stood at Rs 7 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 13 billion as against Rs 11 billion during FY18, thereby witnessing a growth of 23%.

RICO AUTO Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 5,633 6,160 9.4
 
Current Liabilities Rs m 4,127 4,993 21.0
Long-term Debt Rs m 631 1,648 161.1
Total Liabilities Rs m 10,777 13,269 23.1
 
Current assets Rs m 4,416 5,336 20.8
Fixed Assets Rs m 5,384 6,854 27.3
Total Assets Rs m 10,777 13,269 23.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RICO AUTO Cash Flow Statement Analysis

  • RICO AUTO's cash flow from operating activities (CFO) during FY19 stood at Rs 1 billion, an improvement of 49.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -2 billion, an improvement of 129.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 687 million, an improvement of 6,458% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 162 million from the Rs 65 million net cash flows seen during FY18.

RICO AUTO 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 856 1,280 49.5%
Cash Flow from Investing Activities Rs m -789 -1,809 -
Cash Flow from Financing Activities Rs m -11 687 -
Net Cash Flow Rs m 65 162 148.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for RICO AUTO

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.8, an decline from the EPS of Rs 4.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 44.7, stands at 16.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.7 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 89.4 102.9
TTM Earnings per share Rs 4.3 3.8
Diluted earnings per share Rs 4.3 3.8
Price to Cash Flow x 5.5 5.7
TTM P/E ratio x 16.2 16.2
Price / Book Value ratio x 1.9 1.6
Market Cap Rs m 6,047 6,047
Dividends per share (Unadj.) Rs 0.8 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for RICO AUTO

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY19, from 1.1x 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 3.9x during FY19, from 5.0x 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 8.3% during FY19, from 10.3% 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 12.7% during FY19, from 14.2% 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 5.9% during FY19, from 7.1% 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 1.1 1.1
Debtors’ Days Days 69 71
Interest coverage x 5.0 3.9
Debt to equity ratio x 0.1 0.3
Return on assets % 7.1 5.9
Return on equity % 10.3 8.3
Return on capital employed % 14.2 12.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

RICO AUTO Share Price Performance

Over the last one year, RICO AUTO share price has moved down from Rs 81.3 to Rs 44.7, registering a loss of Rs 36.6 or around 45.0%.

Overall, the S&P BSE SENSEX is down 2.3% over the year.

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

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