SUPRAJIT ENGINEERING 2018-19 Annual Report Analysis

Sun, 31 Mar

SUPRAJIT ENGINEERING 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.

SUPRAJIT ENGINEERING Income Statement Analysis

• Operating income during the year rose 13.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.6% in FY19 as against 16.8% in FY18.
• Depreciation charges increased by 10.1% and finance costs decreased by 9.4% YoY, respectively.
• Other income grew by 79.0% YoY.
• Net profit for the year declined by 3.4% YoY.
• Net profit margins during the year declined from 9.8% in FY18 to 8.4% in FY19.

SUPRAJIT ENGINEERING Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	14,075	15,899	13.0%
Other income	Rs m	212	380	79.0%
Total Revenues	Rs m	14,287	16,279	13.9%
Gross profit	Rs m	2,365	2,328	-1.6%
Depreciation	Rs m	372	410	10.1%
Interest	Rs m	271	246	-9.4%
Profit before tax	Rs m	1,934	2,052	6.1%
Tax	Rs m	549	714	30.0%
Profit after tax	Rs m	1,385	1,338	-3.4%
Gross profit margin	%	16.8	14.6
Effective tax rate	%	28.4	34.8
Net profit margin	%	9.8	8.4

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SUPRAJIT ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 5 billion as compared to Rs 5 billion in FY18, thereby witnessing an increase of 5.4%.
• Long-term debt down at Rs 974 million as compared to Rs 1 billion during FY18, a fall of 9.5%.
• Current assets rose 14% and stood at Rs 8 billion, while fixed assets rose 8% and stood at Rs 6 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 14 billion as against Rs 13 billion during FY18, thereby witnessing a growth of 11%.

SUPRAJIT ENGINEERING Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	6,549	7,701	17.6
Current Liabilities	Rs m	4,754	5,012	5.4
Long-term Debt	Rs m	1,076	974	-9.5
Total Liabilities	Rs m	13,018	14,472	11.2
Current assets	Rs m	7,272	8,290	14.0
Fixed Assets	Rs m	5,746	6,182	7.6
Total Assets	Rs m	13,018	14,472	11.2

SUPRAJIT ENGINEERING Cash Flow Statement Analysis

• SUPRAJIT ENGINEERING's cash flow from operating activities (CFO) during FY19 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -890 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -418 million, an improvement of 51% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 141 million from the Rs 96 million net cash flows seen during FY18.

SUPRAJIT ENGINEERING 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	2,173	1,448	-33.4%
Cash Flow from Investing Activities	Rs m	-1,250	-890	-
Cash Flow from Financing Activities	Rs m	-845	-418	-
Net Cash Flow	Rs m	96	141	46.5%

Current Valuations for SUPRAJIT ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.6, an decline from the EPS of Rs 9.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 243.8, stands at 25.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 19.0 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	100.6	113.7
TTM Earnings per share	Rs	9.9	9.6
Diluted earnings per share	Rs	10.0	9.7
Price to Cash Flow	x	22.0	19.0
TTM P/E ratio	x	37.0	25.7
Price / Book Value ratio	x	6.1	4.3
Market Cap	Rs m	40,073	33,139
Dividends per share (Unadj.)	Rs	1.4	1.6

Ratio Analysis for SUPRAJIT ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY19, from 1.5x 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 9.4x during FY19, from 8.1x 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 17.4% during FY19, from 21.1% 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 26.5% during FY19, from 28.9% 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 10.9% during FY19, from 12.7% 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	1.5	1.7
Debtors’ Days	Days	75	67
Interest coverage	x	8.1	9.4
Debt to equity ratio	x	0.2	0.1
Return on assets	%	12.7	10.9
Return on equity	%	21.1	17.4
Return on capital employed	%	28.9	26.5

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

SUPRAJIT ENGINEERING Share Price Performance

Over the last one year, SUPRAJIT ENGINEERING share price has moved down from Rs 279.6 to Rs 243.8, registering a loss of Rs 35.9 or around 12.8%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Read: Latest Annual Report Analysis of SUPRAJIT ENGINEERING