SUZLON ENERGY 2018-19 Annual Report Analysis

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SUZLON ENERGY 2018-19 Annual Report Analysis
Thu, 19 Sep

SUZLON ENERGY 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.

SUZLON ENERGY Income Statement Analysis

  • Operating income during the year fell 38.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 100.9% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 0.2% in FY19 as against 12.4% in FY18.
  • Depreciation charges increased by 0.1% and finance costs decreased by 19.7% YoY, respectively.
  • Other income declined by 36.9% YoY.
  • Net profit for the year grew by 300.3% YoY.
  • Net profit margins during the year declined from 4.7% in FY18 to 30.6% in FY19.

SUZLON ENERGY Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 80,746 49,785 -38.3%
Other income Rs m 792 500 -36.9%
Total Revenues Rs m 81,538 50,284 -38.3%
Gross profit Rs m 10,031 -88 -100.9%
Depreciation Rs m 3,416 3,419 0.1%
Interest Rs m 15,810 12,699 -19.7%
Profit before tax Rs m -8,404 -15,706 86.9%
Tax Rs m -16 -119 662.8%
Profit after tax Rs m -3,840 -15,372 300.3%
Gross profit margin % 12.4 -0.2
Effective tax rate % 0.2 0.8
Net profit margin % -4.7 -30.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SUZLON ENERGY Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 109 billion as compared to Rs 99 billion in FY18, thereby witnessing an increase of 10.9%.
  • Long-term debt down at Rs 62 billion as compared to Rs 77 billion during FY18, a fall of 19.1%.
  • Current assets fell 18% and stood at Rs 64 billion, while fixed assets fell 6% and stood at Rs 18 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 89 billion as against Rs 111 billion during FY18, thereby witnessing a fall of 20%.

SUZLON ENERGY Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m -69,669 -84,976 22.0
 
Current Liabilities Rs m 98,689 109,492 10.9
Long-term Debt Rs m 77,157 62,441 -19.1
Total Liabilities Rs m 111,206 88,709 -20.2
 
Current assets Rs m 78,488 64,250 -18.1
Fixed Assets Rs m 18,830 17,688 -6.1
Total Assets Rs m 111,206 88,709 -20.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SUZLON ENERGY Cash Flow Statement Analysis

  • SUZLON ENERGY's cash flow from operating activities (CFO) during FY19 stood at Rs 13 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -19 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -5 billion from the Rs 2 billion net cash flows seen during FY18.

SUZLON ENERGY 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 -1,094 12,667 -
Cash Flow from Investing Activities Rs m -1,335 1,252 -
Cash Flow from Financing Activities Rs m 4,924 -18,983 -
Net Cash Flow Rs m 2,450 -5,065 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SUZLON ENERGY

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.1, an decline from the EPS of Rs -0.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 3.0, stands at -0.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -0.4 times, while the price to sales ratio stands at 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at -0.9 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 16.1 9.9
TTM Earnings per share Rs -0.8 -3.1
Diluted earnings per share Rs -1.1 -4.5
Price to Cash Flow x -31.5 -0.9
TTM P/E ratio x -1.2 -0.8
Price / Book Value ratio x -1.2 -0.4
Market Cap Rs m 14,973 10,141
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SUZLON ENERGY

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY19, from 0.8x 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 -0.2x during FY19, from 0.5x 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 18.1% during FY19, from 5.5% 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 12.4% during FY19, from 159.6% 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 -3.0% during FY19, from 10.8% 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 0.8 0.6
Debtors’ Days Days 135 138
Interest coverage x 0.5 -0.2
Debt to equity ratio x -1.1 -0.7
Return on assets % 10.8 -3.0
Return on equity % 5.5 18.1
Return on capital employed % 159.6 12.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how SUZLON ENERGY has performed over the last 5 years, please visit here.

SUZLON ENERGY Share Price Performance

Over the last one year, SUZLON ENERGY share price has moved down from Rs 7.2 to Rs 3.0, registering a loss of Rs 4.2 or around 58.4%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 13,183.7 (down 1.4%). Over the last one year it has moved down from 14,826.1 to 13,183.7, a loss of 1,642 points (down 11.1%).

Overall, the S&P BSE SENSEX is down 2.8% over the year.

(To know more, check out historical annual results for SUZLON ENERGY and quarterly results for SUZLON ENERGY)

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Related Views on News

SUZLON ENERGY Announces Quarterly Results (4QFY19); Net Profit Up 39.4% (Quarterly Result Update)

Jun 3, 2019 | Updated on Jun 3, 2019

For the quarter ended March 2019, SUZLON ENERGY has posted a net profit of Rs 3 bn (up 39.4% YoY). Sales on the other hand came in at Rs 14 bn (down 35.6% YoY). Read on for a complete analysis of SUZLON ENERGY's quarterly results.

SUZLON ENERGY Announces Quarterly Results (3QFY19); Net Profit Up 20.3% (Quarterly Result Update)

Feb 12, 2019 | Updated on Feb 12, 2019

For the quarter ended December 2018, SUZLON ENERGY has posted a net profit of Rs 386 m (up 20.3% YoY). Sales on the other hand came in at Rs 11 bn (down 50.6% YoY). Read on for a complete analysis of SUZLON ENERGY's quarterly results.

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