RAYMOND 2018-19 Annual Report Analysis

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RAYMOND 2018-19 Annual Report Analysis
Mon, 27 May

RAYMOND 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.

RAYMOND Income Statement Analysis

  • Operating income during the year rose 11.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 34.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.8% in FY19 as against 7.3% in FY18.
  • Depreciation charges increased by 15.4% and finance costs increased by 26.6% YoY, respectively.
  • Other income grew by 5.8% YoY.
  • Net profit for the year grew by 23.5% YoY.
  • Net profit margins during the year grew from 2.4% in FY18 to 2.6% in FY19.

RAYMOND Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 58,995 65,823 11.6%
Other income Rs m 1,185 1,254 5.8%
Total Revenues Rs m 60,180 67,077 11.5%
Gross profit Rs m 4,279 5,768 34.8%
Depreciation Rs m 1,703 1,965 15.4%
Interest Rs m 1,838 2,326 26.6%
Profit before tax Rs m 1,923 2,731 42.0%
Tax Rs m 666 856 28.5%
Profit after tax Rs m 1,416 1,748 23.5%
Gross profit margin % 7.3 8.8
Effective tax rate % 34.7 31.4
Net profit margin % 2.4 2.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RAYMOND Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 41 billion as compared to Rs 34 billion in FY18, thereby witnessing an increase of 20.0%.
  • Long-term debt down at Rs 4 billion as compared to Rs 7 billion during FY18, a fall of 38.1%.
  • Current assets rose 17% and stood at Rs 40 billion, while fixed assets rose 8% and stood at Rs 22 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 67 billion as against Rs 61 billion during FY18, thereby witnessing a growth of 9%.

RAYMOND Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 18,120 19,538 7.8
 
Current Liabilities Rs m 34,444 41,337 20.0
Long-term Debt Rs m 6,640 4,113 -38.1
Total Liabilities Rs m 61,090 66,645 9.1
 
Current assets Rs m 34,321 40,179 17.1
Fixed Assets Rs m 20,120 21,778 8.2
Total Assets Rs m 61,090 66,645 9.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RAYMOND Cash Flow Statement Analysis

  • RAYMOND'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 -1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -248 million from the Rs 94 million net cash flows seen during FY18.

RAYMOND 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 3,947 2,507 -36.5%
Cash Flow from Investing Activities Rs m -4,085 -1,226 -
Cash Flow from Financing Activities Rs m 296 -1,488 -
Net Cash Flow Rs m 94 -248 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for RAYMOND

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.5, an improvement from the EPS of Rs 23.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 856.9, stands at 28.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.9 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 961.1 1,072.4
TTM Earnings per share Rs 23.1 28.5
Diluted earnings per share Rs 23.1 28.5
Price to Cash Flow x 16.6 13.9
TTM P/E ratio x 28.6 28.6
Price / Book Value ratio x 2.9 2.7
Market Cap Rs m 52,597 52,597
Dividends per share (Unadj.) Rs 3.0 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for RAYMOND

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY19, from 1.0x 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 2.2x during FY19, from 2.0x 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 improved and stood at 8.9% during FY19, from 7.8% 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 improved and stood at 20.8% during FY19, from 15.8% 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 6.1% during FY19, from 5.3% 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 1.0 1.0
Debtors’ Days Days 67 70
Interest coverage x 2.0 2.2
Debt to equity ratio x 0.4 0.2
Return on assets % 5.3 6.1
Return on equity % 7.8 8.9
Return on capital employed % 15.8 20.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

RAYMOND Share Price Performance

Over the last one year, RAYMOND share price has moved up from Rs 1,027.5 to Rs 856.9, registering a loss of Rs 170.6 or around 16.6%.

Overall, the S&P BSE SENSEX is up 14.6% over the year.

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

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Related Views on News

RAYMOND Announces Quarterly Results (1QFY20); Net Profit Down 506.9% (Quarterly Result Update)

Aug 5, 2019 | Updated on Aug 5, 2019

For the quarter ended June 2019, RAYMOND has posted a net profit of Rs 118 m (down 506.9% YoY). Sales on the other hand came in at Rs 14 bn (up 14.7% YoY). Read on for a complete analysis of RAYMOND's quarterly results.

RAYMOND Announces Quarterly Results (4QFY19); Net Profit Up 32.8% (Quarterly Result Update)

May 2, 2019 | Updated on May 2, 2019

For the quarter ended March 2019, RAYMOND has posted a net profit of Rs 691 m (up 32.8% YoY). Sales on the other hand came in at Rs 18 bn (up 11.0% YoY). Read on for a complete analysis of RAYMOND's quarterly results.

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