AJMERA REALTY 2018-19 Annual Report Analysis

Sun, 31 Mar

AJMERA REALTY 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.

AJMERA REALTY Income Statement Analysis

• Operating income during the year rose 3.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 33.3% in FY19 as against 37.4% in FY18.
• Depreciation charges decreased by 12.4% and finance costs increased by 8.5% YoY, respectively.
• Other income grew by 13.1% YoY.
• Net profit for the year declined by 9.7% YoY.
• Net profit margins during the year declined from 22.8% in FY18 to 20.0% in FY19.

AJMERA REALTY Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	3,696	3,815	3.2%
Other income	Rs m	172	195	13.1%
Total Revenues	Rs m	3,868	4,010	3.7%
Gross profit	Rs m	1,383	1,272	-8.1%
Depreciation	Rs m	27	24	-12.4%
Interest	Rs m	463	503	8.5%
Profit before tax	Rs m	1,065	940	-11.8%
Tax	Rs m	220	177	-19.7%
Profit after tax	Rs m	844	763	-9.7%
Gross profit margin	%	37.4	33.3
Effective tax rate	%	20.7	18.8
Net profit margin	%	22.8	20.0

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AJMERA REALTY Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 2 billion as compared to Rs 3 billion in FY18, thereby witnessing an decrease of -33.7%.
• Long-term debt stood at Rs 8 billion as compared to Rs 4 billion during FY18, a growth of 123.8%.
• Current assets rose 26% and stood at Rs 14 billion, while fixed assets rose 12% and stood at Rs 5 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 19 billion as against Rs 15 billion during FY18, thereby witnessing a growth of 22%.

AJMERA REALTY Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	5,629	6,112	8.6
Current Liabilities	Rs m	2,652	1,759	-33.7
Long-term Debt	Rs m	3,553	7,951	123.8
Total Liabilities	Rs m	15,360	18,797	22.4
Current assets	Rs m	11,128	14,065	26.4
Fixed Assets	Rs m	4,232	4,732	11.8
Total Assets	Rs m	15,360	18,797	22.4

AJMERA REALTY Cash Flow Statement Analysis

• AJMERA REALTY's cash flow from operating activities (CFO) during FY19 stood at Rs -3 billion, an improvement of 197.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -50 million, an improvement of 29.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 4 billion, an improvement of 233% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 121 million from the Rs -112 million net cash flows seen during FY18.

AJMERA REALTY 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	-1,160	-3,455	-
Cash Flow from Investing Activities	Rs m	-39	-50	-
Cash Flow from Financing Activities	Rs m	1,087	3,626	233.5%
Net Cash Flow	Rs m	-112	121	-

Current Valuations for AJMERA REALTY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.5, an decline from the EPS of Rs 23.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 190.5, stands at 8.9 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 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 9.5 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	104.2	107.5
TTM Earnings per share	Rs	23.8	21.5
Diluted earnings per share	Rs	23.8	21.5
Price to Cash Flow	x	9.8	9.5
TTM P/E ratio	x	10.4	8.9
Price / Book Value ratio	x	1.7	1.2
Market Cap	Rs m	9,592	7,475
Dividends per share (Unadj.)	Rs	3.3	3.3

Ratio Analysis for AJMERA REALTY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 8.0x during FY19, from 4.2x 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 2.9x during FY19, from 3.3x 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 12.5% during FY19, from 15.0% 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 declined and down at 10.3% during FY19, from 16.6% 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 6.7% during FY19, from 8.5% 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	4.2	8.0
Debtors’ Days	Days	1,761	1,838
Interest coverage	x	3.3	2.9
Debt to equity ratio	x	0.6	1.3
Return on assets	%	8.5	6.7
Return on equity	%	15.0	12.5
Return on capital employed	%	16.6	10.3

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

AJMERA REALTY Share Price Performance

Over the last one year, AJMERA REALTY share price has moved down from Rs 240.6 to Rs 190.5, registering a loss of Rs 50.2 or around 20.8%.

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 AJMERA REALTY and quarterly results for AJMERA REALTY)

Read: Latest Annual Report Analysis of AJMERA REALTY