SPML INFRA 2018-19 Annual Report Analysis

Sun, 31 Mar

SPML INFRA 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.

SPML INFRA Income Statement Analysis

• Operating income during the year fell 1.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 21.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.4% in FY19 as against 10.5% in FY18.
• Depreciation charges decreased by 35.4% and finance costs decreased by 24.8% YoY, respectively.
• Other income grew by 7.3% YoY.
• Net profit for the year grew by 7.8% YoY.
• Net profit margins during the year grew from 1.7% in FY18 to 1.9% in FY19.

SPML INFRA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	20,495	20,115	-1.9%
Other income	Rs m	607	651	7.3%
Total Revenues	Rs m	21,102	20,766	-1.6%
Gross profit	Rs m	2,157	1,686	-21.8%
Depreciation	Rs m	168	109	-35.4%
Interest	Rs m	2,136	1,606	-24.8%
Profit before tax	Rs m	460	622	35.2%
Tax	Rs m	114	248	118.9%
Profit after tax	Rs m	346	373	7.8%
Gross profit margin	%	10.5	8.4
Effective tax rate	%	24.7	40.0
Net profit margin	%	1.7	1.9

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SPML INFRA Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 20 billion as compared to Rs 19 billion in FY18, thereby witnessing an increase of 4.8%.
• Long-term debt down at Rs 7 billion as compared to Rs 7 billion during FY18, a fall of 8.0%.
• Current assets rose 1% and stood at Rs 21 billion, while fixed assets rose 4% and stood at Rs 13 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 34 billion as against Rs 33 billion during FY18, thereby witnessing a growth of 2%.

SPML INFRA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	4,649	4,201	-9.6
Current Liabilities	Rs m	19,428	20,351	4.8
Long-term Debt	Rs m	7,348	6,762	-8.0
Total Liabilities	Rs m	33,096	33,830	2.2
Current assets	Rs m	20,742	21,031	1.4
Fixed Assets	Rs m	12,354	12,800	3.6
Total Assets	Rs m	33,096	33,830	2.2

SPML INFRA Cash Flow Statement Analysis

• SPML INFRA's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -290 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion, an improvement of 49% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 120 million from the Rs -181 million net cash flows seen during FY18.

SPML INFRA 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	2,343	1,777	-24.2%
Cash Flow from Investing Activities	Rs m	676	-290	-
Cash Flow from Financing Activities	Rs m	-3,303	-1,681	-
Net Cash Flow	Rs m	-181	120	-

Current Valuations for SPML INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.2, an improvement from the EPS of Rs 9.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 29.8, stands at 2.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.1 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	559.2	548.8
TTM Earnings per share	Rs	9.5	10.2
Diluted earnings per share	Rs	8.1	8.7
Price to Cash Flow	x	7.3	5.7
TTM P/E ratio	x	8.7	2.6
Price / Book Value ratio	x	1.0	0.7
Market Cap	Rs m	4,535	2,767
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SPML INFRA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x 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 improved and stood at 1.4x during FY19, from 1.2x 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 7.5% 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 20.3% during FY19, from 21.6% 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 7.5% 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	1.0
Debtors’ Days	Days	1,159	1,230
Interest coverage	x	1.2	1.4
Debt to equity ratio	x	1.6	1.6
Return on assets	%	7.5	5.9
Return on equity	%	7.5	8.9
Return on capital employed	%	21.6	20.3

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

SPML INFRA Share Price Performance

Over the last one year, SPML INFRA share price has moved down from Rs 88.0 to Rs 29.8, registering a loss of Rs 58.2 or around 66.1%.

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 SPML INFRA and quarterly results for SPML INFRA)