S.P. APPARELS 2018-19 Annual Report Analysis

Sun, 31 Mar

S.P. APPARELS 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.

S.P. APPARELS Income Statement Analysis

• Operating income during the year rose 24.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.5% in FY19 as against 16.0% in FY18.
• Depreciation charges decreased by 3.6% and finance costs decreased by 78.3% YoY, respectively.
• Other income grew by 8.0% YoY.
• Net profit for the year grew by 53.5% YoY.
• Net profit margins during the year grew from 7.2% in FY18 to 8.9% in FY19.

S.P. APPARELS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	6,624	8,264	24.8%
Other income	Rs m	164	177	8.0%
Total Revenues	Rs m	6,788	8,441	24.3%
Gross profit	Rs m	1,058	1,196	13.0%
Depreciation	Rs m	224	216	-3.6%
Interest	Rs m	287	62	-78.3%
Profit before tax	Rs m	711	1,094	54.0%
Tax	Rs m	233	361	55.1%
Profit after tax	Rs m	478	734	53.5%
Gross profit margin	%	16.0	14.5
Effective tax rate	%	32.7	33.0
Net profit margin	%	7.2	8.9

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S.P. APPARELS Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 3 billion as compared to Rs 3 billion in FY18, thereby witnessing an decrease of -0.8%.
• Long-term debt down at Rs 263 million as compared to Rs 337 million during FY18, a fall of 21.9%.
• Current assets rose 1% and stood at Rs 5 billion, while fixed assets rose 23% and stood at Rs 4 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 9 billion as against Rs 8 billion during FY18, thereby witnessing a growth of 9%.

S.P. APPARELS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	3,972	4,839	21.8
Current Liabilities	Rs m	3,356	3,331	-0.8
Long-term Debt	Rs m	337	263	-21.9
Total Liabilities	Rs m	8,096	8,865	9.5
Current assets	Rs m	4,832	4,857	0.5
Fixed Assets	Rs m	3,264	4,009	22.8
Total Assets	Rs m	8,096	8,865	9.5

S.P. APPARELS Cash Flow Statement Analysis

• S.P. APPARELS's cash flow from operating activities (CFO) during FY19 stood at Rs 823 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -604 million, an improvement of 294.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -169 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 50 million from the Rs 28 million net cash flows seen during FY18.

S.P. APPARELS 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	-12	823	-
Cash Flow from Investing Activities	Rs m	-153	-604	-
Cash Flow from Financing Activities	Rs m	192	-169	-
Net Cash Flow	Rs m	28	50	79.6%

Current Valuations for S.P. APPARELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.6, an improvement from the EPS of Rs 18.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 320.1, stands at 11.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 7.9 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	263.2	321.7
TTM Earnings per share	Rs	18.0	28.6
Diluted earnings per share	Rs	17.7	28.6
Price to Cash Flow	x	12.1	7.9
TTM P/E ratio	x	18.2	11.2
Price / Book Value ratio	x	2.5	1.5
Market Cap	Rs m	9,841	7,464
Dividends per share (Unadj.)	Rs	0.5	0.0

Ratio Analysis for S.P. APPARELS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x 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 18.5x during FY19, from 3.5x 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 15.2% during FY19, from 12.0% 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 22.7% during FY19, from 23.2% 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 9.0% during FY19, from 9.5% 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	1.4	1.5
Debtors’ Days	Days	91	57
Interest coverage	x	3.5	18.5
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.5	9.0
Return on equity	%	12.0	15.2
Return on capital employed	%	23.2	22.7

To see how S.P. APPARELS has performed over the last 5 years, please visit here.

S.P. APPARELS Share Price Performance

Over the last one year, S.P. APPARELS share price has moved down from Rs 331.0 to Rs 320.1, registering a loss of Rs 10.9 or around 3.3%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for S.P. APPARELS and quarterly results for S.P. APPARELS)

Read: Latest Annual Report Analysis of S.P. APPARELS