TAJ GVK 2018-19 Annual Report Analysis

Sun, 31 Mar

TAJ GVK 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.

TAJ GVK Income Statement Analysis

• Operating income during the year rose 9.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.8% in FY19 as against 24.8% in FY18.
• Depreciation charges decreased by 3.3% and finance costs decreased by 13.6% YoY, respectively.
• Other income grew by 174.2% YoY.
• Net profit for the year grew by 15.7% YoY.
• Net profit margins during the year grew from 7.3% in FY18 to 7.7% in FY19.

TAJ GVK Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	2,883	3,169	9.9%
Other income	Rs m	26	72	174.2%
Total Revenues	Rs m	2,909	3,241	11.4%
Gross profit	Rs m	716	692	-3.4%
Depreciation	Rs m	173	167	-3.3%
Interest	Rs m	250	216	-13.6%
Profit before tax	Rs m	320	381	19.1%
Tax	Rs m	110	138	25.5%
Profit after tax	Rs m	210	243	15.7%
Gross profit margin	%	24.8	21.8
Effective tax rate	%	34.4	36.2
Net profit margin	%	7.3	7.7

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TAJ GVK Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 932 million as compared to Rs 1 billion in FY18, thereby witnessing an decrease of -12.1%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY18, a fall of 18.6%.
• Current assets fell 28% and stood at Rs 426 million, while fixed assets fell 1% and stood at Rs 7 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 7 billion as against Rs 7 billion during FY18, thereby witnessing a fall of 3%.

TAJ GVK Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	3,692	3,919	6.1
Current Liabilities	Rs m	1,060	932	-12.1
Long-term Debt	Rs m	1,967	1,601	-18.6
Total Liabilities	Rs m	7,365	7,107	-3.5
Current assets	Rs m	591	426	-27.9
Fixed Assets	Rs m	6,772	6,681	-1.3
Total Assets	Rs m	7,365	7,107	-3.5

TAJ GVK Cash Flow Statement Analysis

• TAJ GVK's cash flow from operating activities (CFO) during FY19 stood at Rs 590 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -162 million, an improvement of 99.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -561 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -134 million from the Rs 112 million net cash flows seen during FY18.

TAJ GVK 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	746	590	-21.0%
Cash Flow from Investing Activities	Rs m	-81	-162	-
Cash Flow from Financing Activities	Rs m	-552	-561	-
Net Cash Flow	Rs m	112	-134	-

Current Valuations for TAJ GVK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.9, an improvement from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 237.5, stands at 62.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 4.7 times.
• The company's price to cash flow (P/CF) ratio stood at 30.8 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	46.0	50.5
TTM Earnings per share	Rs	3.4	3.9
Diluted earnings per share	Rs	3.4	3.9
Price to Cash Flow	x	26.9	30.8
TTM P/E ratio	x	48.0	62.8
Price / Book Value ratio	x	3.0	3.2
Market Cap	Rs m	10,963	12,637
Dividends per share (Unadj.)	Rs	0.6	0.6

Ratio Analysis for TAJ GVK

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY19, from 0.6x 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 2.8x during FY19, from 2.3x 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 improved and stood at 6.2% during FY19, from 5.7% 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 improved and stood at 10.8% during FY19, from 10.1% 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 6.5% 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	0.6	0.5
Debtors’ Days	Days	245	215
Interest coverage	x	2.3	2.8
Debt to equity ratio	x	0.5	0.4
Return on assets	%	6.2	6.5
Return on equity	%	5.7	6.2
Return on capital employed	%	10.1	10.8

To see how TAJ GVK has performed over the last 5 years, please visit here.

TAJ GVK Share Price Performance

Over the last one year, TAJ GVK share price has moved up from Rs 164.0 to Rs 237.5, registering a gain of Rs 73.5 or around 44.8%.

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

(To know more, check out historical annual results for TAJ GVK and quarterly results for TAJ GVK)

Read: Latest Annual Report Analysis of TAJ GVK