VEDANTA 2019-20 Annual Report Analysis

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VEDANTA 2019-20 Annual Report Analysis
Fri, 11 Dec

VEDANTA has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

VEDANTA Income Statement Analysis

  • Operating income during the year fell 8.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 10.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.5% in FY20 as against 25.1% in FY19.
  • Depreciation charges increased by 11.0% and finance costs decreased by 12.5% YoY, respectively.
  • Other income declined by 37.5% YoY.
  • Net profit for the year declined by 148.9% YoY.
  • Net profit margins during the year declined from 10.1% in FY19 to 5.5% in FY20.

VEDANTA Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 920,480 844,470 -8.3%
Other income Rs m 40,180 25,100 -37.5%
Total Revenues Rs m 960,660 869,570 -9.5%
Gross profit Rs m 231,030 206,870 -10.5%
Depreciation Rs m 81,920 90,930 11.0%
Interest Rs m 56,890 49,770 -12.5%
Profit before tax Rs m 132,400 91,270 -31.1%
Tax Rs m 38,620 -35,160 -191.0%
Profit after tax Rs m 96,980 -47,430 -148.9%
Gross profit margin % 25.1 24.5
Effective tax rate % 29.2 -38.5
Net profit margin % 10.1 -5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Learn: How to Potentially Accumulate Rs 7 Crore in Wealth Over the Long-term

VEDANTA Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 633 billion as compared to Rs 766 billion in FY19, thereby witnessing an decrease of -17.4%.
  • Long-term debt stood at Rs 367 billion as compared to Rs 347 billion during FY19, a growth of 5.8%.
  • Current assets fell 4% and stood at Rs 575 billion, while fixed assets fell 11% and stood at Rs 1,075 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 1,836 billion as against Rs 2,020 billion during FY19, thereby witnessing a fall of 9%.

VEDANTA Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 622,968 546,348 -12.3
 
Current Liabilities Rs m 766,410 633,220 -17.4
Long-term Debt Rs m 347,210 367,240 5.8
Total Liabilities Rs m 2,020,430 1,836,220 -9.1
 
Current assets Rs m 598,280 575,200 -3.9
Fixed Assets Rs m 1,213,560 1,074,890 -11.4
Total Assets Rs m 2,020,430 1,836,220 -9.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VEDANTA Cash Flow Statement Analysis

  • VEDANTA's cash flow from operating activities (CFO) during FY20 stood at Rs 193 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -59 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -155 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -22 billion from the Rs 29 billion net cash flows seen during FY19.

VEDANTA Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 237,540 192,980 -18.8%
Cash Flow from Investing Activities Rs m -105,300 -58,940 -
Cash Flow from Financing Activities Rs m -102,420 -155,470 -
Net Cash Flow Rs m 29,180 -21,740 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for VEDANTA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -16.0, an decline from the EPS of Rs 32.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 146.4, stands at -9.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 310.4 284.8
TTM Earnings per share Rs 32.7 -16.0
Diluted earnings per share Rs 32.7 -16.0
Price to Cash Flow x 2.4 10.0
TTM P/E ratio x -9.2 -9.2
Price / Book Value ratio x 1.1 0.7
Market Cap Rs m 434,076 434,031
Dividends per share (Unadj.) Rs 18.9 3.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for VEDANTA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.9x during FY20, from 0.8x during FY19. 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 deteriorated and stood at 2.8x during FY20, from 3.3x during FY19. 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 -8.7% during FY20, from 15.6% during FY20. 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 -3.6% during FY20, from 19.8% during FY19. 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 0.1% during FY20, from 7.6% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 0.8 0.9
Debtors’ Days Days 16 12
Interest coverage x 3.3 2.8
Debt to equity ratio x 0.6 0.7
Return on assets % 7.6 0.1
Return on equity % 15.6 -8.7
Return on capital employed % 19.8 -3.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

VEDANTA Share Price Performance

Over the last one year, VEDANTA share price has moved up from Rs 138.6 to Rs 146.4, registering a gain of Rs 7.8 or around 5.6%.

Overall, the S&P BSE SENSEX is up 13.9% over the year.

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

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VEDANTA Announces Quarterly Results (3QFY21); Net Profit Up 58.5% (Quarterly Result Update)

Feb 1, 2021 | Updated on Feb 1, 2021

For the quarter ended December 2020, VEDANTA has posted a net profit of Rs 42 bn (up 58.5% YoY). Sales on the other hand came in at Rs 225 bn (up 5.3% YoY). Read on for a complete analysis of VEDANTA's quarterly results.

VEDANTA LTD Announces Quarterly Results (3QFY20); Net Profit Up 14.3% (Quarterly Result Update)

Feb 3, 2020 | Updated on Feb 3, 2020

For the quarter ended December 2019, VEDANTA LTD has posted a net profit of Rs 27 bn (up 14.3% YoY). Sales on the other hand came in at Rs 214 bn (down 9.8% YoY). Read on for a complete analysis of VEDANTA LTD's quarterly results.

VEDANTA LTD 2018-19 Annual Report Analysis (Annual Result Update)

Jun 27, 2019 | Updated on Jun 27, 2019

Here's an analysis of the annual report of VEDANTA LTD for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of VEDANTA LTD. Also includes updates on the valuation of VEDANTA LTD.

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