REL.INDUS.INFRAS 2018-19 Annual Report Analysis

Sun, 31 Mar

REL.INDUS.INFRAS 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.

REL.INDUS.INFRAS Income Statement Analysis

• Operating income during the year fell 4.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 33.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.0% in FY19 as against 18.4% in FY18.
• Depreciation charges increased by 2.1% increased by 0.0% YoY, respectively.
• Other income grew by 20.1% YoY.
• Net profit for the year declined by 20.0% YoY.
• Net profit margins during the year declined from 11.0% in FY18 to 9.2% in FY19.

REL.INDUS.INFRAS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	889	846	-4.8%
Other income	Rs m	127	152	20.1%
Total Revenues	Rs m	1,015	998	-1.7%
Gross profit	Rs m	164	110	-33.0%
Depreciation	Rs m	139	142	2.1%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	151	120	-20.7%
Tax	Rs m	54	42	-22.0%
Profit after tax	Rs m	97	78	-20.0%
Gross profit margin	%	18.4	13.0
Effective tax rate	%	35.6	35.1
Net profit margin	%	11.0	9.2

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REL.INDUS.INFRAS Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 290 million as compared to Rs 330 million in FY18, thereby witnessing an decrease of -12.3%.
• Current assets rose 14% and stood at Rs 634 million, while fixed assets rose 1% and stood at Rs 4 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 4 billion as against Rs 4 billion during FY18, thereby witnessing a growth of 3%.

REL.INDUS.INFRAS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	3,540	3,707	4.7
Current Liabilities	Rs m	330	290	-12.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,059	4,171	2.7
Current assets	Rs m	557	634	13.9
Fixed Assets	Rs m	3,502	3,537	1.0
Total Assets	Rs m	4,059	4,171	2.7

REL.INDUS.INFRAS Cash Flow Statement Analysis

• REL.INDUS.INFRAS's cash flow from operating activities (CFO) during FY19 stood at Rs 131 million, an improvement of 5.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -71 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -64 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -5 million from the Rs -12 million net cash flows seen during FY18.

REL.INDUS.INFRAS 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	124	131	5.8%
Cash Flow from Investing Activities	Rs m	-73	-71	-
Cash Flow from Financing Activities	Rs m	-63	-64	-
Net Cash Flow	Rs m	-12	-5	-

Current Valuations for REL.INDUS.INFRAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.2, an decline from the EPS of Rs 6.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 327.3, stands at 63.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 5.8 times.
• The company's price to cash flow (P/CF) ratio stood at 26.0 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	58.9	56.0
TTM Earnings per share	Rs	6.5	5.2
Diluted earnings per share	Rs	6.5	5.2
Price to Cash Flow	x	27.7	26.0
TTM P/E ratio	x	67.3	63.4
Price / Book Value ratio	x	2.3	1.5
Market Cap	Rs m	8,124	5,714
Dividends per share (Unadj.)	Rs	3.5	3.0

Ratio Analysis for REL.INDUS.INFRAS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY19, from 1.7x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 2.1% during FY19, from 2.8% 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 3.2% during FY19, from 4.3% 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 1.9% during FY19, from 2.4% 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	2.2
Debtors’ Days	Days	760	621
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.4	1.9
Return on equity	%	2.8	2.1
Return on capital employed	%	4.3	3.2

To see how REL.INDUS.INFRAS has performed over the last 5 years, please visit here.

REL.INDUS.INFRAS Share Price Performance

Over the last one year, REL.INDUS.INFRAS share price has moved down from Rs 433.9 to Rs 327.3, registering a loss of Rs 106.6 or around 24.6%.

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 REL.INDUS.INFRAS and quarterly results for REL.INDUS.INFRAS)

Read: Latest Annual Report Analysis of REL.INDUS.INFRAS