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SIMPLEX INFRA 2018-19 Annual Report Analysis

Sun, 31 Mar

SIMPLEX INFRA 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.

SIMPLEX INFRA Income Statement Analysis

• Operating income during the year rose 6.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.6% in FY19 as against 11.3% in FY18.
• Depreciation charges decreased by 8.5% and finance costs increased by 4.2% YoY, respectively.
• Other income declined by 17.4% YoY.
• Net profit for the year grew by 5.0% YoY.
• Net profit margins during the year declined from 2.0% in FY18 to 2.0% in FY19.

SIMPLEX INFRA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	57,669	61,172	6.1%
Other income	Rs m	1,356	1,120	-17.4%
Total Revenues	Rs m	59,024	62,292	5.5%
Gross profit	Rs m	6,496	7,093	9.2%
Depreciation	Rs m	1,840	1,683	-8.5%
Interest	Rs m	4,516	4,707	4.2%
Profit before tax	Rs m	1,496	1,822	21.8%
Tax	Rs m	340	609	79.2%
Profit after tax	Rs m	1,156	1,214	5.0%
Gross profit margin	%	11.3	11.6
Effective tax rate	%	22.7	33.4
Net profit margin	%	2.0	2.0

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SIMPLEX INFRA Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 72 billion as compared to Rs 69 billion in FY18, thereby witnessing an increase of 4.3%.
• Long-term debt down at Rs 4 billion as compared to Rs 6 billion during FY18, a fall of 32.6%.
• Current assets rose 7% and stood at Rs 85 billion, while fixed assets fell 6% and stood at Rs 12 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 97 billion as against Rs 92 billion during FY18, thereby witnessing a growth of 5%.

SIMPLEX INFRA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	16,305	20,043	22.9
Current Liabilities	Rs m	69,003	71,990	4.3
Long-term Debt	Rs m	5,511	3,713	-32.6
Total Liabilities	Rs m	92,093	96,850	5.2
Current assets	Rs m	79,269	84,777	6.9
Fixed Assets	Rs m	12,823	12,073	-5.9
Total Assets	Rs m	92,093	96,850	5.2

SIMPLEX INFRA Cash Flow Statement Analysis

• SIMPLEX INFRA's cash flow from operating activities (CFO) during FY19 stood at Rs 325 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -714 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 318 million, an improvement of 118% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -55 million from the Rs 581 million net cash flows seen during FY18.

SIMPLEX INFRA 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	4,010	325	-91.9%
Cash Flow from Investing Activities	Rs m	-1,635	-714	-
Cash Flow from Financing Activities	Rs m	-1,790	318	-
Net Cash Flow	Rs m	581	-55	-

Current Valuations for SIMPLEX INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.2, an decline from the EPS of Rs 23.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 179.8, stands at 8.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 7.5 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	1,165.7	1,070.6
TTM Earnings per share	Rs	23.4	21.2
Diluted earnings per share	Rs	20.2	21.2
Price to Cash Flow	x	9.9	7.5
TTM P/E ratio	x	25.5	8.4
Price / Book Value ratio	x	1.5	1.1
Market Cap	Rs m	23,672	21,756
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for SIMPLEX INFRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY19, from 1.1x 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 1.4x during FY19, from 1.3x 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 6.1% during FY19, from 7.1% 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 27.5% during FY19, from 27.6% 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 6.1% during FY19, from 6.2% 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	1.1	1.2
Debtors’ Days	Days	918	837
Interest coverage	x	1.3	1.4
Debt to equity ratio	x	0.3	0.2
Return on assets	%	6.2	6.1
Return on equity	%	7.1	6.1
Return on capital employed	%	27.6	27.5

To see how SIMPLEX INFRA has performed over the last 5 years, please visit here.

SIMPLEX INFRA Share Price Performance

Over the last one year, SIMPLEX INFRA share price has moved down from Rs 521.4 to Rs 179.8, registering a loss of Rs 341.7 or around 65.5%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,077.1 (up 0.6%). Over the last one year it has moved down from 2,229.9 to 2,077.1, a loss of 153 points (down 6.9%).

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

(To know more, check out historical annual results for SIMPLEX INFRA and quarterly results for SIMPLEX INFRA)

Read: Latest Annual Report Analysis of SIMPLEX INFRA