SUNDRAM FASTENERS 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

SUNDRAM FASTENERS 2018-19 Annual Report Analysis
Mon, 16 Sep

SUNDRAM FASTENERS 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.

SUNDRAM FASTENERS Income Statement Analysis

  • Operating income during the year rose 18.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 17.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.6% in FY19 as against 17.7% in FY18.
  • Depreciation charges increased by 14.6% and finance costs increased by 22.9% YoY, respectively.
  • Other income grew by 15.5% YoY.
  • Net profit for the year grew by 18.2% YoY.
  • Net profit margins during the year grew from 10.0% in FY18 to 10.0% in FY19.

SUNDRAM FASTENERS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 38,549 45,579 18.2%
Other income Rs m 232 268 15.5%
Total Revenues Rs m 38,781 45,847 18.2%
Gross profit Rs m 6,805 8,004 17.6%
Depreciation Rs m 1,123 1,288 14.6%
Interest Rs m 375 460 22.9%
Profit before tax Rs m 5,539 6,524 17.8%
Tax Rs m 1,658 1,935 16.7%
Profit after tax Rs m 3,882 4,590 18.2%
Gross profit margin % 17.7 17.6
Effective tax rate % 29.9 29.7
Net profit margin % 10.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SUNDRAM FASTENERS Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 13 billion as compared to Rs 11 billion in FY18, thereby witnessing an increase of 20.3%.
  • Long-term debt stood at Rs 4 billion as compared to Rs 2 billion during FY18, a growth of 83.2%.
  • Current assets rose 17% and stood at Rs 17 billion, while fixed assets rose 35% and stood at Rs 17 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 37 billion as against Rs 30 billion during FY18, thereby witnessing a growth of 24%.

SUNDRAM FASTENERS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 15,311 18,700 22.1
 
Current Liabilities Rs m 10,913 13,131 20.3
Long-term Debt Rs m 2,181 3,996 83.2
Total Liabilities Rs m 29,874 37,033 24.0
 
Current assets Rs m 14,537 16,995 16.9
Fixed Assets Rs m 12,671 17,163 35.4
Total Assets Rs m 29,874 37,033 24.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SUNDRAM FASTENERS Cash Flow Statement Analysis

  • SUNDRAM FASTENERS's cash flow from operating activities (CFO) during FY19 stood at Rs 5 billion, an improvement of 0.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -6 billion, an improvement of 101.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 1 billion, an improvement of 176% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -106 million from the Rs -65 million net cash flows seen during FY18.

SUNDRAM FASTENERS 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 4,564 4,575 0.2%
Cash Flow from Investing Activities Rs m -2,952 -5,959 -
Cash Flow from Financing Activities Rs m -1,671 1,267 -
Net Cash Flow Rs m -65 -106 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SUNDRAM FASTENERS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.8, an improvement from the EPS of Rs 18.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 455.4, stands at 22.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 2.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.3 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 183.5 216.9
TTM Earnings per share Rs 18.5 21.8
Diluted earnings per share Rs 18.5 21.8
Price to Cash Flow x 19.1 16.3
TTM P/E ratio x 22.6 22.6
Price / Book Value ratio x 6.9 6.6
Market Cap Rs m 95,693 95,693
Dividends per share (Unadj.) Rs 4.6 5.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SUNDRAM FASTENERS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x 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 15.2x during FY19, from 15.8x 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 24.5% during FY19, from 25.4% 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 declined and down at 30.8% during FY19, from 33.8% 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 13.6% during FY19, from 14.2% 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 1.3
Debtors’ Days Days 75 71
Interest coverage x 15.8 15.2
Debt to equity ratio x 0.1 0.2
Return on assets % 14.2 13.6
Return on equity % 25.4 24.5
Return on capital employed % 33.8 30.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how SUNDRAM FASTENERS has performed over the last 5 years, please visit here.

SUNDRAM FASTENERS Share Price Performance

Over the last one year, SUNDRAM FASTENERS share price has moved down from Rs 629.0 to Rs 455.4, registering a loss of Rs 173.6 or around 27.6%.

Overall, the S&P BSE SENSEX is down 2.3% over the year.

(To know more, check out historical annual results for SUNDRAM FASTENERS and quarterly results for SUNDRAM FASTENERS)

Equitymaster requests your view! Post a comment on "SUNDRAM FASTENERS 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

SUNDRAM FASTENERS Announces Quarterly Results (4QFY20); Net Profit Down 57.3% (Quarterly Result Update)

Jun 12, 2020 | Updated on Jun 12, 2020

For the quarter ended March 2020, SUNDRAM FASTENERS has posted a net profit of Rs 468 m (down 57.3% YoY). Sales on the other hand came in at Rs 7 bn (down 30.4% YoY). Read on for a complete analysis of SUNDRAM FASTENERS's quarterly results.

SUNDRAM FASTENERS Announces Quarterly Results (2QFY20); Net Profit Down 35.5% (Quarterly Result Update)

Nov 11, 2019 | Updated on Nov 11, 2019

For the quarter ended September 2019, SUNDRAM FASTENERS has posted a net profit of Rs 711 m (down 35.5% YoY). Sales on the other hand came in at Rs 8 bn (down 23.4% YoY). Read on for a complete analysis of SUNDRAM FASTENERS's quarterly results.

More Views on News

Most Popular

Not Infosys or Wipro. India's Next Wealth Creators Could Be Drone Stocks(Profit Hunter)

Nov 25, 2020

India's drones directorate signals the next big defence tech multibaggers.

It's Time to Book Profits(Fast Profits Daily)

Nov 27, 2020

In my first video on Equitymaster, I want to introduce you my proprietary greed and fear index. It's telling us to book some profits in the market.

How the New Margins Will Impact You(Fast Profits Daily)

Nov 25, 2020

The new rules on margins will come into effect from 1st December. Are you ready?

Is this Sector the Best Contrarian Bet Right Now?(Profit Hunter)

Nov 23, 2020

The risk reward ratio in this beaten down sector may have finally turned for the better.

The Price of Dying, the Cost of Living(The Honest Truth)

Nov 20, 2020

Ajit Dayal presents a cost benefit analysis of the various types of response to covid around the world.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

TRACK SUNDRAM FASTENERS

  • Track your investment in SUNDRAM FASTENERS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON SUNDRAM FASTENERS

SUNDRAM FASTENERS 5-YR ANALYSIS

COMPARE SUNDRAM FASTENERS WITH

MARKET STATS