SHANTHI GEARS 2018-19 Annual Report Analysis

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SHANTHI GEARS 2018-19 Annual Report Analysis
Thu, 19 Sep

SHANTHI GEARS 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.

SHANTHI GEARS Income Statement Analysis

  • Operating income during the year rose 13.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 12.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.0% in FY19 as against 17.2% in FY18.
  • Depreciation charges decreased by 31.7% increased by 0.0% YoY, respectively.
  • Other income declined by 1.0% YoY.
  • Net profit for the year grew by 16.7% YoY.
  • Net profit margins during the year grew from 12.6% in FY18 to 13.1% in FY19.

SHANTHI GEARS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 2,141 2,430 13.5%
Other income Rs m 119 118 -1.0%
Total Revenues Rs m 2,260 2,548 12.7%
Gross profit Rs m 368 413 12.1%
Depreciation Rs m 156 106 -31.7%
Interest Rs m 0 0 0.0%
Profit before tax Rs m 332 425 28.0%
Tax Rs m 46 91 98.5%
Profit after tax Rs m 286 334 16.7%
Gross profit margin % 17.2 17.0
Effective tax rate % 13.8 21.5
Net profit margin % 12.6 13.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SHANTHI GEARS Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 493 million as compared to Rs 413 million in FY18, thereby witnessing an increase of 19.4%.
  • Current assets fell 4% and stood at Rs 3 billion, while fixed assets rose 3% and stood at Rs 588 million in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 4 billion as against Rs 4 billion during FY18, thereby witnessing a fall of 2%.

SHANTHI GEARS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 3,178 3,021 -4.9
 
Current Liabilities Rs m 413 493 19.4
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 3,601 3,526 -2.1
 
Current assets Rs m 2,788 2,690 -3.5
Fixed Assets Rs m 573 588 2.6
Total Assets Rs m 3,601 3,526 -2.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SHANTHI GEARS Cash Flow Statement Analysis

  • SHANTHI GEARS's cash flow from operating activities (CFO) during FY19 stood at Rs 272 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 404 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -493 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 183 million from the Rs -6 million net cash flows seen during FY18.

SHANTHI GEARS 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 423 272 -35.7%
Cash Flow from Investing Activities Rs m -262 404 -
Cash Flow from Financing Activities Rs m -167 -493 -
Net Cash Flow Rs m -6 183 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SHANTHI GEARS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.1, an improvement from the EPS of Rs 3.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 88.0, stands at 21.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 4.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.4 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 26.2 29.7
TTM Earnings per share Rs 3.5 4.1
Diluted earnings per share Rs 3.5 4.1
Price to Cash Flow x 16.3 16.4
TTM P/E ratio x 21.0 21.0
Price / Book Value ratio x 3.7 3.5
Market Cap Rs m 7,191 7,191
Dividends per share (Unadj.) Rs 1.0 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SHANTHI GEARS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 5.5x during FY19, from 6.8x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 11.0% during FY19, from 9.0% 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 14.1% during FY19, from 10.4% 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 improved and stood at 9.5% during FY19, from 7.9% 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 6.8 5.5
Debtors’ Days Days 95 85
Interest coverage x 0.0 0.0
Debt to equity ratio x 0.0 0.0
Return on assets % 7.9 9.5
Return on equity % 9.0 11.0
Return on capital employed % 10.4 14.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

SHANTHI GEARS Share Price Performance

Over the last one year, SHANTHI GEARS share price has moved down from Rs 131.9 to Rs 88.0, registering a loss of Rs 43.9 or around 33.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 16,779.3 (down 1.1%). Over the last one year it has moved down from 18,168.6 to 16,779.3, a loss of 1,389 points (down 7.6%).

Overall, the S&P BSE SENSEX is down 2.8% over the year.

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

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