TIL 2018-19 Annual Report Analysis

Sun, 31 Mar

TIL 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.

TIL Income Statement Analysis

• Operating income during the year rose 30.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.7% in FY19 as against 11.3% in FY18.
• Depreciation charges increased by 6.6% and finance costs increased by 28.6% YoY, respectively.
• Other income grew by 55.6% YoY.
• Net profit for the year grew by 205.5% YoY.
• Net profit margins during the year grew from 2.2% in FY18 to 5.3% in FY19.

TIL Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	3,371	4,390	30.2%
Other income	Rs m	55	86	55.6%
Total Revenues	Rs m	3,426	4,476	30.6%
Gross profit	Rs m	381	514	34.7%
Depreciation	Rs m	116	124	6.6%
Interest	Rs m	207	266	28.6%
Profit before tax	Rs m	113	209	84.9%
Tax	Rs m	37	-22	-159.6%
Profit after tax	Rs m	76	232	205.5%
Gross profit margin	%	11.3	11.7
Effective tax rate	%	33.0	-10.7
Net profit margin	%	2.2	5.3

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TIL Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 4 billion as compared to Rs 3 billion in FY18, thereby witnessing an increase of 15.7%.
• Long-term debt down at Rs 6 million as compared to Rs 9 million during FY18, a fall of 33.7%.
• Current assets rose 13% and stood at Rs 5 billion, while fixed assets rose 4% and stood at Rs 2 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 7 billion as against Rs 6 billion during FY18, thereby witnessing a growth of 10%.

TIL Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	3,001	3,179	5.9
Current Liabilities	Rs m	3,376	3,907	15.7
Long-term Debt	Rs m	9	6	-33.7
Total Liabilities	Rs m	6,242	6,869	10.0
Current assets	Rs m	4,256	4,806	12.9
Fixed Assets	Rs m	1,986	2,063	3.8
Total Assets	Rs m	6,242	6,869	10.0

TIL Cash Flow Statement Analysis

• TIL's cash flow from operating activities (CFO) during FY19 stood at Rs 264 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -255 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -121 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -99 million from the Rs 34 million net cash flows seen during FY18.

TIL 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	-832	264	-
Cash Flow from Investing Activities	Rs m	17	-255	-
Cash Flow from Financing Activities	Rs m	854	-121	-
Net Cash Flow	Rs m	34	-99	-

Current Valuations for TIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.1, an improvement from the EPS of Rs 7.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 252.4, stands at 9.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 10.5 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	336.1	437.7
TTM Earnings per share	Rs	7.6	23.1
Diluted earnings per share	Rs	7.6	23.1
Price to Cash Flow	x	23.2	10.5
TTM P/E ratio	x	83.4	9.5
Price / Book Value ratio	x	1.6	1.2
Market Cap	Rs m	4,897	3,743
Dividends per share (Unadj.)	Rs	3.5	1.8

Ratio Analysis for TIL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY19, from 1.3x 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 1.8x during FY19, from 1.5x 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 7.3% during FY19, from 2.5% 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 improved and stood at 14.9% during FY19, from 10.6% 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 improved and stood at 7.2% during FY19, from 4.5% 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	1.3	1.2
Debtors’ Days	Days	1,309	1,536
Interest coverage	x	1.5	1.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.5	7.2
Return on equity	%	2.5	7.3
Return on capital employed	%	10.6	14.9

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

TIL Share Price Performance

Over the last one year, TIL share price has moved down from Rs 444.8 to Rs 252.4, registering a loss of Rs 192.5 or around 43.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

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

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