SOLAR INDUSTRIES 2018-19 Annual Report Analysis

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SOLAR INDUSTRIES 2018-19 Annual Report Analysis
Mon, 30 Sep

SOLAR INDUSTRIES 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.

SOLAR INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 28.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 20.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.1% in FY19 as against 21.5% in FY18.
  • Depreciation charges increased by 14.8% and finance costs increased by 52.4% YoY, respectively.
  • Other income grew by 21.7% YoY.
  • Net profit for the year grew by 18.5% YoY.
  • Net profit margins during the year declined from 12.1% in FY18 to 11.2% in FY19.

SOLAR INDUSTRIES Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 19,161 24,616 28.5%
Other income Rs m 121 147 21.7%
Total Revenues Rs m 19,282 24,763 28.4%
Gross profit Rs m 4,116 4,959 20.5%
Depreciation Rs m 513 589 14.8%
Interest Rs m 327 499 52.4%
Profit before tax Rs m 3,396 4,019 18.3%
Tax Rs m 1,061 1,251 17.9%
Profit after tax Rs m 2,336 2,768 18.5%
Gross profit margin % 21.5 20.1
Effective tax rate % 31.2 31.1
Net profit margin % 12.1 11.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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SOLAR INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 7 billion as compared to Rs 6 billion in FY18, thereby witnessing an increase of 27.3%.
  • Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY18, a fall of 20.6%.
  • Current assets rose 19% and stood at Rs 10 billion, while fixed assets rose 18% and stood at Rs 12 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 23 billion as against Rs 20 billion during FY18, thereby witnessing a growth of 14%.

SOLAR INDUSTRIES Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 10,839 12,383 14.3
 
Current Liabilities Rs m 5,660 7,204 27.3
Long-term Debt Rs m 1,961 1,556 -20.6
Total Liabilities Rs m 19,951 22,820 14.4
 
Current assets Rs m 8,171 9,684 18.5
Fixed Assets Rs m 10,307 12,204 18.4
Total Assets Rs m 19,951 22,820 14.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SOLAR INDUSTRIES Cash Flow Statement Analysis

  • SOLAR INDUSTRIES's cash flow from operating activities (CFO) during FY19 stood at Rs 3 billion, an improvement of 1.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -2 billion, an improvement of 13.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -515 million, an improvement of 3% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 85 million from the Rs 266 million net cash flows seen during FY18.

SOLAR INDUSTRIES 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 2,541 2,585 1.7%
Cash Flow from Investing Activities Rs m -1,743 -1,984 -
Cash Flow from Financing Activities Rs m -532 -515 -
Net Cash Flow Rs m 266 85 -68.0%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SOLAR INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 153.0, an improvement from the EPS of Rs 129.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,106.8, stands at 36.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 29.8 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 1,059.2 1,360.7
TTM Earnings per share Rs 129.1 153.0
Diluted earnings per share Rs 25.8 30.6
Price to Cash Flow x 7.0 29.8
TTM P/E ratio x 7.2 36.1
Price / Book Value ratio x 1.7 1.6
Market Cap Rs m 20,022 100,154
Dividends per share (Unadj.) Rs 6.0 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SOLAR INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x 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 deteriorated and stood at 9.1x during FY19, from 11.4x 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 22.4% during FY19, from 21.6% 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 32.4% during FY19, from 29.1% 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 14.3% during FY19, from 13.3% 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 1.3
Debtors’ Days Days 69 59
Interest coverage x 11.4 9.1
Debt to equity ratio x 0.2 0.1
Return on assets % 13.3 14.3
Return on equity % 21.6 22.4
Return on capital employed % 29.1 32.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how SOLAR INDUSTRIES has performed over the last 5 years, please visit here.

SOLAR INDUSTRIES Share Price Performance

Over the last one year, SOLAR INDUSTRIES share price has moved up from Rs 1,054.6 to Rs 1,106.8, registering a gain of Rs 52.3 or around 5.0%.

Overall, the S&P BSE SENSEX is up 6.0% over the year.

(To know more, check out historical annual results for SOLAR INDUSTRIES and quarterly results for SOLAR INDUSTRIES)

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Related Views on News

SOLAR INDUSTRIES Announces Quarterly Results (3QFY20); Net Profit Down 11.7% (Quarterly Result Update)

Feb 17, 2020 | Updated on Feb 17, 2020

For the quarter ended December 2019, SOLAR INDUSTRIES has posted a net profit of Rs 650 m (down 11.7% YoY). Sales on the other hand came in at Rs 6 bn (down 14.1% YoY). Read on for a complete analysis of SOLAR INDUSTRIES's quarterly results.

SOLAR INDUSTRIES Announces Quarterly Results (2QFY20); Net Profit Up 57.5% (Quarterly Result Update)

Nov 14, 2019 | Updated on Nov 14, 2019

For the quarter ended September 2019, SOLAR INDUSTRIES has posted a net profit of Rs 866 m (up 57.5% YoY). Sales on the other hand came in at Rs 5 bn (down 2.7% YoY). Read on for a complete analysis of SOLAR INDUSTRIES's quarterly results.

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