SANGHVI MOVERS 2018-19 Annual Report Analysis

Sun, 31 Mar

SANGHVI MOVERS 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.

SANGHVI MOVERS Income Statement Analysis

• Operating income during the year rose 23.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 31.6% in FY19 as against 36.6% in FY18.
• Depreciation charges increased by 3.0% and finance costs decreased by 13.1% YoY, respectively.
• Other income declined by 35.9% YoY.
• Net profit for the year grew by 1.0% YoY.
• Net profit margins during the year grew from 25.2% in FY18 to 20.6% in FY19.

SANGHVI MOVERS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	2,284	2,824	23.6%
Other income	Rs m	201	129	-35.9%
Total Revenues	Rs m	2,485	2,953	18.8%
Gross profit	Rs m	836	893	6.9%
Depreciation	Rs m	1,367	1,408	3.0%
Interest	Rs m	547	476	-13.1%
Profit before tax	Rs m	-879	-863	-1.8%
Tax	Rs m	-304	-282	-7.2%
Profit after tax	Rs m	-575	-581	1.0%
Gross profit margin	%	36.6	31.6
Effective tax rate	%	34.6	32.7
Net profit margin	%	-25.2	-20.6

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SANGHVI MOVERS Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 2 billion as compared to Rs 1 billion in FY18, thereby witnessing an increase of 10.4%.
• Long-term debt down at Rs 3 billion as compared to Rs 5 billion during FY18, a fall of 28.6%.
• Current assets fell 32% and stood at Rs 1 billion, while fixed assets fell 11% and stood at Rs 11 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 12 billion as against Rs 14 billion during FY18, thereby witnessing a fall of 14%.

SANGHVI MOVERS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	7,890	7,332	-7.1
Current Liabilities	Rs m	1,372	1,514	10.4
Long-term Debt	Rs m	4,589	3,275	-28.6
Total Liabilities	Rs m	14,454	12,437	-14.0
Current assets	Rs m	1,732	1,173	-32.3
Fixed Assets	Rs m	12,722	11,264	-11.5
Total Assets	Rs m	14,454	12,437	-14.0

SANGHVI MOVERS Cash Flow Statement Analysis

• SANGHVI MOVERS's cash flow from operating activities (CFO) during FY19 stood at Rs 1 billion, an improvement of 1.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 191 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 18 million from the Rs 1 million net cash flows seen during FY18.

SANGHVI MOVERS 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	1,264	1,278	1.1%
Cash Flow from Investing Activities	Rs m	-444	191	-
Cash Flow from Financing Activities	Rs m	-819	-1,451	-
Net Cash Flow	Rs m	1	18	1,328.2%

Current Valuations for SANGHVI MOVERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -13.4, an decline from the EPS of Rs -13.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 110.9, stands at -8.3 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 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 8.0 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	52.8	65.2
TTM Earnings per share	Rs	-13.3	-13.4
Diluted earnings per share	Rs	-13.3	-13.4
Price to Cash Flow	x	9.7	8.0
TTM P/E ratio	x	-13.3	-8.3
Price / Book Value ratio	x	1.1	0.9
Market Cap	Rs m	8,746	6,610
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SANGHVI MOVERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY19, from 1.3x 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 -0.8x during FY19, from -0.6x 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 -7.9% during FY19, from -7.3% 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 -3.6% during FY19, from -2.7% 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 -0.8% during FY19, from -0.2% 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	1.3	0.8
Debtors’ Days	Days	2,150	947
Interest coverage	x	-0.6	-0.8
Debt to equity ratio	x	0.6	0.4
Return on assets	%	-0.2	-0.8
Return on equity	%	-7.3	-7.9
Return on capital employed	%	-2.7	-3.6

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

SANGHVI MOVERS Share Price Performance

Over the last one year, SANGHVI MOVERS share price has moved down from Rs 177.1 to Rs 110.9, registering a loss of Rs 66.3 or around 37.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

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

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

Read: Latest Annual Report Analysis of SANGHVI MOVERS