SUPREME INDUSTRIES 2018-19 Annual Report Analysis

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SUPREME INDUSTRIES 2018-19 Annual Report Analysis
Fri, 7 Jun

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 decreased by 0.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.0% in FY19 as against 16.3% in FY18.
  • Depreciation charges increased by 9.8% and finance costs increased by 26.0% YoY, respectively.
  • Other income grew by 123.6% YoY.
  • Net profit for the year grew by 3.9% YoY.
  • Net profit margins during the year declined from 8.9% in FY18 to 8.0% 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 35 78 123.6%
Total Revenues Rs m 48,344 56,198 16.2%
Gross profit Rs m 7,871 7,846 -0.3%
Depreciation Rs m 1,672 1,835 9.8%
Interest Rs m 206 260 26.0%
Profit before tax Rs m 6,028 5,828 -3.3%
Tax Rs m 2,057 2,158 4.9%
Profit after tax Rs m 4,318 4,486 3.9%
Gross profit margin % 16.3 14.0
Effective tax rate % 34.1 37.0
Net profit margin % 8.9 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 16 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 14,284 16,110 12.8
Total Assets Rs m 29,361 32,293 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 -3 billion, an improvement of 18.4% 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 -763 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 -2,668 -3,160 -
Cash Flow from Financing Activities Rs m -2,838 -3,160 -
Net Cash Flow Rs m -431 -763 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SUPREME INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.3, an improvement from the EPS of Rs 34.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,072.1, stands at 30.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.0 times, while the price to sales ratio stands at 2.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 22.0 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 380.3 441.8
TTM Earnings per share Rs 34.0 35.3
Diluted earnings per share Rs 34.0 35.3
Price to Cash Flow x 24.1 22.0
TTM P/E ratio x 30.9 30.9
Price / Book Value ratio x 8.4 7.0
Market Cap Rs m 136,183 136,183
Dividends per share (Unadj.) Rs 12.0 13.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 23.4x during FY19, from 30.2x 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 20.8% during FY19, from 22.8% 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 declined and down at 32.0% during FY19, from 34.7% 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 14.7% during FY19, from 15.4% 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 29 25
Interest coverage x 30.2 23.4
Debt to equity ratio x 0.0 0.0
Return on assets % 15.4 14.7
Return on equity % 22.8 20.8
Return on capital employed % 34.7 32.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 up from Rs 1,240.6 to Rs 1,072.1, registering a loss of Rs 168.6 or around 13.6%.

Overall, the S&P BSE SENSEX is up 12.4% over the year.

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

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Related Views on News

SUPREME INDUSTRIES Announces Quarterly Results (1QFY20); Net Profit Down 45.3% (Quarterly Result Update)

Jul 30, 2019 | Updated on Jul 30, 2019

For the quarter ended June 2019, SUPREME INDUSTRIES has posted a net profit of Rs 746 m (down 45.3% YoY). Sales on the other hand came in at Rs 14 bn (up 6.8% YoY). Read on for a complete analysis of SUPREME INDUSTRIES's quarterly results.

SUPREME INDUSTRIES Announces Quarterly Results (4QFY19); Net Profit Down 36.6% (Quarterly Result Update)

May 8, 2019 | Updated on May 8, 2019

For the quarter ended March 2019, SUPREME INDUSTRIES has posted a net profit of Rs 1 bn (down 36.6% YoY). Sales on the other hand came in at Rs 15 bn (up 4.1% YoY). Read on for a complete analysis of SUPREME INDUSTRIES's quarterly results.

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