SUPREME INDUSTRIES 2018-19 Annual Report Analysis

Sun, 31 Mar

SUPREME 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.

SUPREME INDUSTRIES Income Statement Analysis

• Operating income during the year rose 16.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.2% in FY19 as against 16.3% in FY18.
• Depreciation charges increased by 9.8% and finance costs increased by 24.5% YoY, respectively.
• Other income grew by 56.7% YoY.
• Net profit for the year grew by 9.4% YoY.
• Net profit margins during the year declined from 8.2% in FY18 to 7.7% in FY19.

SUPREME INDUSTRIES Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	48,309	56,120	16.2%
Other income	Rs m	98	153	56.7%
Total Revenues	Rs m	48,407	56,273	16.3%
Gross profit	Rs m	7,871	8,518	8.2%
Depreciation	Rs m	1,672	1,835	9.8%
Interest	Rs m	269	336	24.5%
Profit before tax	Rs m	6,028	6,500	7.8%
Tax	Rs m	2,057	2,158	4.9%
Profit after tax	Rs m	3,971	4,343	9.4%
Gross profit margin	%	16.3	15.2
Effective tax rate	%	34.1	33.2
Net profit margin	%	8.2	7.7

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SUPREME INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 9 billion as compared to Rs 9 billion in FY18, thereby witnessing an increase of 2.6%.
• Long-term debt down at Rs 11 million as compared to Rs 14 million during FY18, a fall of 17.0%.
• Current assets rose 6% and stood at Rs 13 billion, while fixed assets rose 13% and stood at Rs 19 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 32 billion as against Rs 29 billion during FY18, thereby witnessing a growth of 10%.

SUPREME INDUSTRIES Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	18,949	21,540	13.7
Current Liabilities	Rs m	9,123	9,358	2.6
Long-term Debt	Rs m	14	11	-17.0
Total Liabilities	Rs m	29,361	32,293	10.0
Current assets	Rs m	12,602	13,378	6.2
Fixed Assets	Rs m	16,760	18,915	12.9
Total Assets	Rs m	29,361	32,293	10.0

SUPREME INDUSTRIES Cash Flow Statement Analysis

• SUPREME INDUSTRIES's cash flow from operating activities (CFO) during FY19 stood at Rs 6 billion, an improvement of 9.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 1 million from the Rs -431 million net cash flows seen during FY18.

SUPREME 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	5,076	5,557	9.5%
Cash Flow from Investing Activities	Rs m	-2,669	-2,396	-
Cash Flow from Financing Activities	Rs m	-2,838	-3,160	-
Net Cash Flow	Rs m	-431	1	-

Current Valuations for SUPREME INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.2, an improvement from the EPS of Rs 31.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,113.9, stands at 32.1 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 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 24.4 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	380.3	441.8
TTM Earnings per share	Rs	31.3	34.2
Diluted earnings per share	Rs	31.3	34.2
Price to Cash Flow	x	26.8	24.4
TTM P/E ratio	x	35.0	32.1
Price / Book Value ratio	x	8.4	7.0
Market Cap	Rs m	159,289	150,517
Dividends per share (Unadj.)	Rs	12.0	13.0

Ratio Analysis for SUPREME INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x 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 20.4x during FY19, from 23.4x 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 declined and down at 20.2% during FY19, from 21.0% 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 31.7% during FY19, from 33.2% 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 improved and stood at 14.5% during FY19, from 14.4% 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	1.4
Debtors’ Days	Days	289	252
Interest coverage	x	23.4	20.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.4	14.5
Return on equity	%	21.0	20.2
Return on capital employed	%	33.2	31.7

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

SUPREME INDUSTRIES Share Price Performance

Over the last one year, SUPREME INDUSTRIES share price has moved down from Rs 1,190.7 to Rs 1,113.9, registering a loss of Rs 76.9 or around 6.5%.

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

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

Read: Latest Annual Report Analysis of SUPREME INDUSTRIES