TECH MAHINDRA 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

TECH MAHINDRA 2018-19 Annual Report Analysis
Tue, 9 Jul

TECH MAHINDRA 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.

TECH MAHINDRA Income Statement Analysis

  • Operating income during the year rose 12.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 34.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.2% in FY19 as against 15.3% in FY18.
  • Depreciation charges increased by 4.1% and finance costs decreased by 18.0% YoY, respectively.
  • Other income declined by 62.3% YoY.
  • Net profit for the year grew by 13.3% YoY.
  • Net profit margins during the year grew from 11.8% in FY18 to 12.2% in FY19.

TECH MAHINDRA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 307,729 347,421 12.9%
Other income Rs m 14,165 5,342 -62.3%
Total Revenues Rs m 321,894 352,763 9.6%
Gross profit Rs m 47,096 63,369 34.6%
Depreciation Rs m 10,850 11,292 4.1%
Interest Rs m 1,624 1,332 -18.0%
Profit before tax Rs m 48,787 56,087 15.0%
Tax Rs m 10,926 12,544 14.8%
Profit after tax Rs m 37,862 42,888 13.3%
Gross profit margin % 15.3 18.2
Effective tax rate % 22.4 22.4
Net profit margin % 11.8 12.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TECH MAHINDRA Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 103 billion as compared to Rs 79 billion in FY18, thereby witnessing an increase of 30.5%.
  • Long-term debt down at Rs 2 billion as compared to Rs 8 billion during FY18, a fall of 72.9%.
  • Current assets rose 19% and stood at Rs 216 billion, while fixed assets fell 10% and stood at Rs 31 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 334 billion as against Rs 304 billion during FY18, thereby witnessing a growth of 10%.

TECH MAHINDRA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 188,428 202,844 7.7
 
Current Liabilities Rs m 79,167 103,312 30.5
Long-term Debt Rs m 7,711 2,086 -72.9
Total Liabilities Rs m 304,372 334,469 9.9
 
Current assets Rs m 181,070 215,658 19.1
Fixed Assets Rs m 34,115 30,700 -10.0
Total Assets Rs m 304,372 334,469 9.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TECH MAHINDRA Cash Flow Statement Analysis

  • TECH MAHINDRA's cash flow from operating activities (CFO) during FY19 stood at Rs 44 billion, an improvement of 24.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -21 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -23 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 766 million from the Rs -352 million net cash flows seen during FY18.

TECH MAHINDRA 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 35,535 44,320 24.7%
Cash Flow from Investing Activities Rs m -33,597 -21,164 -
Cash Flow from Financing Activities Rs m -2,694 -22,512 -
Net Cash Flow Rs m -352 766 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for TECH MAHINDRA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.3, an improvement from the EPS of Rs 42.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 678.8, stands at 15.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 1.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.0 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 348.4 391.6
TTM Earnings per share Rs 42.9 48.3
Diluted earnings per share Rs 39.0 44.1
Price to Cash Flow x 12.3 12.0
TTM P/E ratio x 13.9 15.3
Price / Book Value ratio x 2.4 3.2
Market Cap Rs m 599,598 659,784
Dividends per share (Unadj.) Rs 14.0 14.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for TECH MAHINDRA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY19, from 2.3x 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 43.1x during FY19, from 31.0x 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 21.1% during FY19, from 20.1% 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 improved and stood at 27.7% during FY19, from 25.7% 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 improved and stood at 13.2% during FY19, from 13.0% 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 2.3 2.1
Debtors’ Days Days 77 73
Interest coverage x 31.0 43.1
Debt to equity ratio x 0.0 0.0
Return on assets % 13.0 13.2
Return on equity % 20.1 21.1
Return on capital employed % 25.7 27.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how TECH MAHINDRA has performed over the last 5 years, please visit here.

TECH MAHINDRA Share Price Performance

Over the last one year, TECH MAHINDRA share price has moved up from Rs 644.4 to Rs 678.8, registering a gain of Rs 34.5 or around 5.3%.

Meanwhile, the S&P BSE IT Index is trading at Rs 15,123.3 (down 0.7%). Over the last one year it has moved up from 14,026.2 to 15,123.3, a gain of 1,097 points (up 7.8%).

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for TECH MAHINDRA and quarterly results for TECH MAHINDRA)

Equitymaster requests your view! Post a comment on "TECH MAHINDRA 2018-19 Annual Report Analysis". Click here!

1 Responses to "TECH MAHINDRA 2018-19 Annual Report Analysis"

max

Feb 5, 2020

please share the entile TECH MAHINDRA 2018-19 Annual Report Analysis, Thanks

Like 
  
Equitymaster requests your view! Post a comment on "TECH MAHINDRA 2018-19 Annual Report Analysis". Click here!

Related Views on News

TECH MAHINDRA Announces Quarterly Results (2QFY20); Net Profit Up 3.9% (Quarterly Result Update)

Nov 8, 2019 | Updated on Nov 8, 2019

For the quarter ended September 2019, TECH MAHINDRA has posted a net profit of Rs 11 bn (up 3.9% YoY). Sales on the other hand came in at Rs 91 bn (up 5.1% YoY). Read on for a complete analysis of TECH MAHINDRA's quarterly results.

TECH MAHINDRA Announces Quarterly Results (1QFY20); Net Profit Up 5.0% (Quarterly Result Update)

Jul 31, 2019 | Updated on Jul 31, 2019

For the quarter ended June 2019, TECH MAHINDRA has posted a net profit of Rs 10 bn (up 5.0% YoY). Sales on the other hand came in at Rs 87 bn (up 4.6% YoY). Read on for a complete analysis of TECH MAHINDRA's quarterly results.

More Views on News

Most Popular

Sorry Warren Buffett, I'm Following This Man Instead of You in 2020(The 5 Minute Wrapup)

Mar 30, 2020

This man warned of an impending market correction while everyone else was celebrating the renewed optimism in early 2020...

The Biggest Trading Opportunity of 2020 is Here...

Mar 26, 2020

India's #1 trader, Vijay Bhambwani, talks about a hugely profitable trading opportunity which you must know about today!

One Stock that is All Charged Up for the Post Coronavirus Rebound(The 5 Minute Wrapup)

Apr 1, 2020

A stock with strong moat is currently trading near 5-year lows.

The Insiders See a Buying Opportunity in These Smallcaps Amid Coronavirus Outbreak(Profit Hunter)

Mar 31, 2020

The promoters are buying these smallcaps amid the coronavirus outbreak.

A Safe Stock to Lockdown Now(The 5 Minute Wrapup)

Apr 2, 2020

The market crashc has made strong, established brands attractive. Here's a stock to make the most of this opportunity...

More

How to Trade the
Coronavirus Crash

Coronavirus Crash
Get this special report, authored by Equitymaster's top analysts, now.
We will never sell or rent your email id.
Please read our Terms

TRACK TECH MAHINDRA

  • Track your investment in TECH MAHINDRA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

TECH MAHINDRA 8-QTR ANALYSIS

COMPARE TECH MAHINDRA WITH

MARKET STATS