S.P. APPARELS 2018-19 Annual Report Analysis

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S.P. APPARELS 2018-19 Annual Report Analysis
Wed, 28 Aug

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 26.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.2% 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 declined by 79.0% YoY.
  • Net profit for the year grew by 53.5% YoY.
  • Net profit margins during the year grew from 7.0% in FY18 to 8.8% 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 34 -79.0%
Total Revenues Rs m 6,788 8,298 22.2%
Gross profit Rs m 1,058 1,338 26.5%
Depreciation Rs m 224 216 -3.6%
Interest Rs m 287 62 -78.3%
Profit before tax Rs m 711 1,095 54.0%
Tax Rs m 233 361 55.1%
Profit after tax Rs m 478 734 53.5%
Gross profit margin % 16.0 16.2
Effective tax rate % 32.7 33.0
Net profit margin % 7.0 8.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 18% 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 8,866 9.5
 
Current assets Rs m 4,832 4,857 0.5
Fixed Assets Rs m 3,133 3,709 18.4
Total Assets Rs m 8,096 8,866 9.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 295.0% 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 51 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 193 -169 -
Net Cash Flow Rs m 28 51 80.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 19.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 183.2, stands at 6.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.0 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 19.0 28.6
Diluted earnings per share Rs 18.6 28.6
Price to Cash Flow x 6.6 5.0
TTM P/E ratio x 6.8 6.9
Price / Book Value ratio x 2.5 1.5
Market Cap Rs m 4,610 4,705
Dividends per share (Unadj.) Rs 1.5 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 312.0 to Rs 183.2, registering a loss of Rs 128.9 or around 41.3%.

Overall, the S&P BSE SENSEX is down 3.6% over the year.

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

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