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SOBHA LIMITED 2018-19 Annual Report Analysis

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SOBHA LIMITED 2018-19 Annual Report Analysis
Thu, 18 Jul

SOBHA LIMITED 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.

SOBHA LIMITED Income Statement Analysis

  • Operating income during the year rose 23.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 28.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.7% in FY19 as against 19.9% in FY18.
  • Depreciation charges increased by 14.6% and finance costs increased by 19.4% YoY, respectively.
  • Other income grew by 111.7% YoY.
  • Net profit for the year grew by 36.9% YoY.
  • Net profit margins during the year grew from 7.7% in FY18 to 8.5% in FY19.

SOBHA LIMITED Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 27,830 34,421 23.7%
Other income Rs m 164 348 111.7%
Total Revenues Rs m 27,995 34,769 24.2%
Gross profit Rs m 5,529 7,120 28.8%
Depreciation Rs m 544 623 14.6%
Interest Rs m 1,978 2,362 19.4%
Profit before tax Rs m 3,171 4,482 41.3%
Tax Rs m 1,003 1,512 50.8%
Profit after tax Rs m 2,169 2,970 36.9%
Gross profit margin % 19.9 20.7
Effective tax rate % 31.6 33.7
Net profit margin % 7.7 8.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SOBHA LIMITED Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 85 billion as compared to Rs 57 billion in FY18, thereby witnessing an increase of 48.9%.
  • Long-term debt down at Rs 48 million as compared to Rs 3 billion during FY18, a fall of 98.3%.
  • Current assets rose 19% and stood at Rs 93 billion, while fixed assets rose 11% and stood at Rs 7 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 107 billion as against Rs 90 billion during FY18, thereby witnessing a growth of 19%.

SOBHA LIMITED Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 27,699 22,291 -19.5
 
Current Liabilities Rs m 57,055 84,937 48.9
Long-term Debt Rs m 2,788 48 -98.3
Total Liabilities Rs m 90,248 107,397 19.0
 
Current assets Rs m 78,147 93,096 19.1
Fixed Assets Rs m 6,103 6,777 11.1
Total Assets Rs m 90,248 107,397 19.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SOBHA LIMITED Cash Flow Statement Analysis

  • SOBHA LIMITED's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -614 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -862 million, an improvement of 64% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 585 million from the Rs -180 million net cash flows seen during FY18.

SOBHA LIMITED 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 3,535 2,061 -41.7%
Cash Flow from Investing Activities Rs m -1,287 -614 -
Cash Flow from Financing Activities Rs m -2,428 -862 -
Net Cash Flow Rs m -180 585 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SOBHA LIMITED

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.3, an improvement from the EPS of Rs 22.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 562.5, stands at 18.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.4 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 293.4 362.9
TTM Earnings per share Rs 22.9 31.3
Diluted earnings per share Rs 22.1 30.3
Price to Cash Flow x 19.7 15.4
TTM P/E ratio x 18.0 18.6
Price / Book Value ratio x 1.8 2.0
Market Cap Rs m 53,353 55,159
Dividends per share (Unadj.) Rs 7.0 7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SOBHA LIMITED

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY19, from 1.4x 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 improved and stood at 2.9x during FY19, from 2.6x 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 improved and stood at 13.3% during FY19, from 7.8% 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 30.6% during FY19, from 16.9% 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 5.0% during FY19, from 4.6% 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 1.4 1.1
Debtors’ Days Days 43 35
Interest coverage x 2.6 2.9
Debt to equity ratio x 0.1 0.0
Return on assets % 4.6 5.0
Return on equity % 7.8 13.3
Return on capital employed % 16.9 30.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how SOBHA LIMITED has performed over the last 5 years, please visit here.

SOBHA LIMITED Share Price Performance

Over the last one year, SOBHA LIMITED share price has moved up from Rs 464.8 to Rs 562.5, registering a gain of Rs 97.7 or around 21.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,196.3 (down 0.4%). Over the last one year it has moved up from 1,962.8 to 2,196.3, a gain of 233 points (up 11.9%).

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for SOBHA LIMITED and quarterly results for SOBHA LIMITED)

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