SUNDRAM FASTENERS 2018-19 Annual Report Analysis

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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)

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