RADICO KHAITAN 2018-19 Annual Report Analysis

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RADICO KHAITAN 2018-19 Annual Report Analysis
Mon, 16 Sep

RADICO KHAITAN 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.

RADICO KHAITAN Income Statement Analysis

  • Operating income during the year rose 15.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 29.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.7% in FY19 as against 14.8% in FY18.
  • Depreciation charges increased by 3.8% and finance costs decreased by 48.0% YoY, respectively.
  • Other income declined by 50.2% YoY.
  • Net profit for the year grew by 56.6% YoY.
  • Net profit margins during the year grew from 6.7% in FY18 to 9.2% in FY19.

RADICO KHAITAN Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 18,228 20,969 15.0%
Other income Rs m 267 133 -50.2%
Total Revenues Rs m 18,494 21,102 14.1%
Gross profit Rs m 2,698 3,503 29.9%
Depreciation Rs m 409 424 3.8%
Interest Rs m 682 355 -48.0%
Profit before tax Rs m 1,873 2,857 52.6%
Tax Rs m 638 976 53.0%
Profit after tax Rs m 1,240 1,941 56.6%
Gross profit margin % 14.8 16.7
Effective tax rate % 34.1 34.2
Net profit margin % 6.7 9.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RADICO KHAITAN Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 8 billion as compared to Rs 10 billion in FY18, thereby witnessing an decrease of -18.1%.
  • Long-term debt down at Rs 217 million as compared to Rs 344 million during FY18, a fall of 37.0%.
  • Current assets fell 1% and stood at Rs 12 billion, while fixed assets rose 3% and stood at Rs 7 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 23 billion as against Rs 22 billion during FY18, thereby witnessing a growth of 0%.

RADICO KHAITAN Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 11,569 13,357 15.5
 
Current Liabilities Rs m 9,513 7,789 -18.1
Long-term Debt Rs m 344 217 -37.0
Total Liabilities Rs m 22,459 22,514 0.2
 
Current assets Rs m 12,389 12,254 -1.1
Fixed Assets Rs m 7,057 7,299 3.4
Total Assets Rs m 22,459 22,514 0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RADICO KHAITAN Cash Flow Statement Analysis

  • RADICO KHAITAN's cash flow from operating activities (CFO) during FY19 stood at Rs 3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -66 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion, an improvement of 23% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 762 million from the Rs 25 million net cash flows seen during FY18.

RADICO KHAITAN 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 3,158 3,087 -2.2%
Cash Flow from Investing Activities Rs m -208 -66 -
Cash Flow from Financing Activities Rs m -2,926 -2,259 -
Net Cash Flow Rs m 25 762 3,010.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for RADICO KHAITAN

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.6, an improvement from the EPS of Rs 9.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 308.8, stands at 21.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 2.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 17.8 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 136.7 157.2
TTM Earnings per share Rs 9.3 14.6
Diluted earnings per share Rs 9.3 14.6
Price to Cash Flow x 25.0 17.8
TTM P/E ratio x 21.1 21.0
Price / Book Value ratio x 3.0 4.0
Market Cap Rs m 41,166 41,083
Dividends per share (Unadj.) Rs 1.0 1.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for RADICO KHAITAN

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.6x during FY19, from 1.3x 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 9.1x during FY19, from 3.7x 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 improved and stood at 14.5% during FY19, from 10.7% 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 24.1% during FY19, from 21.5% 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 10.2% 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 1.3 1.6
Debtors’ Days Days 126 112
Interest coverage x 3.7 9.1
Debt to equity ratio x 0.0 0.0
Return on assets % 8.6 10.2
Return on equity % 10.7 14.5
Return on capital employed % 21.5 24.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

RADICO KHAITAN Share Price Performance

Over the last one year, RADICO KHAITAN share price has moved down from Rs 417.2 to Rs 308.8, registering a loss of Rs 108.4 or around 26.0%.

Overall, the S&P BSE SENSEX is down 2.5% over the year.

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

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RADICO KHAITAN Announces Quarterly Results (3QFY20); Net Profit Up 6.9% (Quarterly Result Update)

Jan 27, 2020 | Updated on Jan 27, 2020

For the quarter ended December 2019, RADICO KHAITAN has posted a net profit of Rs 557 m (up 6.9% YoY). Sales on the other hand came in at Rs 20 bn (down 2.3% YoY). Read on for a complete analysis of RADICO KHAITAN's quarterly results.

RADICO KHAITAN Announces Quarterly Results (2QFY20); Net Profit Up 58.6% (Quarterly Result Update)

Nov 14, 2019 | Updated on Nov 14, 2019

For the quarter ended September 2019, RADICO KHAITAN has posted a net profit of Rs 786 m (up 58.6% YoY). Sales on the other hand came in at Rs 25 bn (up 32.2% YoY). Read on for a complete analysis of RADICO KHAITAN's quarterly results.

RADICO KHAITAN 2017-18 Annual Report Analysis (Annual Result Update)

Dec 21, 2018 | Updated on Dec 21, 2018

Here's an analysis of the annual report of RADICO KHAITAN for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of RADICO KHAITAN. Also includes updates on the valuation of RADICO KHAITAN.

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