SALZER ELEC 2018-19 Annual Report Analysis

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SALZER ELEC 2018-19 Annual Report Analysis
Mon, 23 Sep

SALZER ELEC 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.

SALZER ELEC Income Statement Analysis

  • Operating income during the year rose 26.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 19.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.4% in FY19 as against 12.0% in FY18.
  • Depreciation charges increased by 15.4% and finance costs increased by 33.3% YoY, respectively.
  • Other income declined by 77.1% YoY.
  • Net profit for the year grew by 19.7% YoY.
  • Net profit margins during the year declined from 4.5% in FY18 to 4.3% in FY19.

SALZER ELEC Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 4,428 5,598 26.4%
Other income Rs m 31 7 -77.1%
Total Revenues Rs m 4,459 5,605 25.7%
Gross profit Rs m 533 636 19.4%
Depreciation Rs m 105 122 15.4%
Interest Rs m 149 199 33.3%
Profit before tax Rs m 309 323 4.4%
Tax Rs m 109 84 -23.5%
Profit after tax Rs m 200 240 19.7%
Gross profit margin % 12.0 11.4
Effective tax rate % 35.3 25.8
Net profit margin % 4.5 4.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SALZER ELEC Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 3 billion as compared to Rs 2 billion in FY18, thereby witnessing an increase of 7.4%.
  • Long-term debt down at Rs 42 million as compared to Rs 77 million during FY18, a fall of 45.0%.
  • Current assets rose 962% and stood at Rs 3 billion, while fixed assets rose 9% and stood at Rs 2 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 6 billion as against Rs 5 billion during FY18, thereby witnessing a growth of 5%.

SALZER ELEC Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 2,706 2,870 6.1
 
Current Liabilities Rs m 2,366 2,540 7.4
Long-term Debt Rs m 77 42 -45.0
Total Liabilities Rs m 5,372 5,656 5.3
 
Current assets Rs m 329 3,497 962.2
Fixed Assets Rs m 1,728 1,890 9.4
Total Assets Rs m 5,372 5,656 5.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SALZER ELEC Cash Flow Statement Analysis

  • SALZER ELEC's cash flow from operating activities (CFO) during FY19 stood at Rs 517 million, an improvement of 1,144.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -283 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -193 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -29 million from the Rs -104 million net cash flows seen during FY18.

SALZER ELEC 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 42 517 1,144.8%
Cash Flow from Investing Activities Rs m -326 -283 -
Cash Flow from Financing Activities Rs m 261 -193 -
Net Cash Flow Rs m -104 -29 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SALZER ELEC

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.4, an improvement from the EPS of Rs 13.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 126.0, stands at 6.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.7 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 295.4 360.7
TTM Earnings per share Rs 13.4 15.4
Diluted earnings per share Rs 14.8 17.7
Price to Cash Flow x 6.2 4.7
TTM P/E ratio x 7.5 6.8
Price / Book Value ratio x 1.2 0.9
Market Cap Rs m 1,889 1,703
Dividends per share (Unadj.) Rs 1.6 1.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SALZER ELEC

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY19, from 0.1x 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 2.6x during FY19, from 3.1x 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 improved and stood at 8.3% during FY19, from 7.4% 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 17.9% during FY19, from 16.5% 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 7.8% during FY19, from 6.5% 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 0.1 1.4
Debtors’ Days Days 97 95
Interest coverage x 3.1 2.6
Debt to equity ratio x 0.0 0.0
Return on assets % 6.5 7.8
Return on equity % 7.4 8.3
Return on capital employed % 16.5 17.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

SALZER ELEC Share Price Performance

Over the last one year, SALZER ELEC share price has moved down from Rs 174.2 to Rs 126.0, registering a loss of Rs 48.2 or around 27.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 19,035.1 (up 5.3%). Over the last one year it has moved up from 18,058.2 to 19,035.1, a gain of 977 points (up 5.4%).

Overall, the S&P BSE SENSEX is up 5.3% over the year.

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

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