VEDANTA LTD 2018-19 Annual Report Analysis

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VEDANTA LTD 2018-19 Annual Report Analysis
Thu, 27 Jun

VEDANTA LTD 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.

VEDANTA LTD Income Statement Analysis

  • Operating income during the year rose 0.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 7.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.1% in FY19 as against 27.1% in FY18.
  • Depreciation charges increased by 30.4% and finance costs increased by 11.3% YoY, respectively.
  • Other income grew by 25.4% YoY.
  • Net profit for the year declined by 29.2% YoY.
  • Net profit margins during the year declined from 14.4% in FY18 to 10.1% in FY19.

VEDANTA LTD Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 918,660 920,480 0.2%
Other income Rs m 32,050 40,180 25.4%
Total Revenues Rs m 950,710 960,660 1.0%
Gross profit Rs m 248,620 231,030 -7.1%
Depreciation Rs m 62,830 81,920 30.4%
Interest Rs m 51,120 56,890 11.3%
Profit before tax Rs m 166,720 132,400 -20.6%
Tax Rs m 58,770 38,620 -34.3%
Profit after tax Rs m 136,920 96,980 -29.2%
Gross profit margin % 27.1 25.1
Effective tax rate % 35.3 29.2
Net profit margin % 14.4 10.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VEDANTA LTD Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 766 billion as compared to Rs 672 billion in FY18, thereby witnessing an increase of 14.0%.
  • Long-term debt stood at Rs 347 billion as compared to Rs 268 billion during FY18, a growth of 29.6%.
  • Current assets rose 9% and stood at Rs 598 billion, while fixed assets rose 8% and stood at Rs 1,214 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 2,020 billion as against Rs 1,846 billion during FY18, thereby witnessing a growth of 9%.

VEDANTA LTD Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 633,118 622,968 -1.6
 
Current Liabilities Rs m 672,470 766,410 14.0
Long-term Debt Rs m 267,890 347,210 29.6
Total Liabilities Rs m 1,845,850 2,020,430 9.5
 
Current assets Rs m 551,140 598,280 8.6
Fixed Assets Rs m 1,123,340 1,213,560 8.0
Total Assets Rs m 1,845,850 2,020,430 9.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VEDANTA LTD Cash Flow Statement Analysis

  • VEDANTA LTD's cash flow from operating activities (CFO) during FY19 stood at Rs 238 billion, an improvement of 36.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -105 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -102 billion, an improvement of 74% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 29 billion from the Rs -64 billion net cash flows seen during FY18.

VEDANTA LTD 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 173,660 237,540 36.8%
Cash Flow from Investing Activities Rs m 153,960 -105,300 -
Cash Flow from Financing Activities Rs m -392,550 -102,420 -
Net Cash Flow Rs m -64,090 29,180 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for VEDANTA LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.7, an decline from the EPS of Rs 46.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 177.0, stands at 5.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 2.9 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 309.8 310.4
TTM Earnings per share Rs 46.2 32.7
Diluted earnings per share Rs 46.2 32.7
Price to Cash Flow x 2.6 2.9
TTM P/E ratio x 5.4 5.4
Price / Book Value ratio x 1.3 1.1
Market Cap Rs m 524,657 524,602
Dividends per share (Unadj.) Rs 21.2 18.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for VEDANTA LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY19, from 0.8x 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 deteriorated and stood at 3.3x during FY19, from 4.3x 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 15.6% during FY19, from 21.6% 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 19.8% during FY19, from 27.4% 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 7.6% during FY19, from 10.2% 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 0.8 0.8
Debtors’ Days Days 16 16
Interest coverage x 4.3 3.3
Debt to equity ratio x 0.4 0.6
Return on assets % 10.2 7.6
Return on equity % 21.6 15.6
Return on capital employed % 27.4 19.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

VEDANTA LTD Share Price Performance

Over the last one year, VEDANTA LTD share price has moved up from Rs 229.8 to Rs 177.0, registering a loss of Rs 52.8 or around 23.0%.

Overall, the S&P BSE SENSEX is up 11.6% over the year.

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

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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 2019-20 Annual Report Analysis (Annual Result Update)

Dec 11, 2020 | Updated on Dec 11, 2020

Here's an analysis of the annual report of VEDANTA for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of VEDANTA. Also includes updates on the valuation of VEDANTA.

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.

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