TIL 2018-19 Annual Report Analysis

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TIL 2018-19 Annual Report Analysis
Tue, 23 Jul

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 27.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 38.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.1% in FY19 as against 10.3% in FY18.
  • Depreciation charges increased by 6.6% and finance costs increased by 35.7% 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 5.2% in FY19.

TIL Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 3,432 4,390 27.9%
Other income Rs m 55 86 55.6%
Total Revenues Rs m 3,487 4,476 28.4%
Gross profit Rs m 352 489 38.8%
Depreciation Rs m 116 124 6.6%
Interest Rs m 178 241 35.7%
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 % 10.3 11.1
Effective tax rate % 33.0 -10.7
Net profit margin % 2.2 5.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 0% and stood at Rs 1 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 11%.

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 6,434 7,142 11.0
 
Current assets Rs m 4,256 4,806 12.9
Fixed Assets Rs m 1,393 1,396 0.3
Total Assets Rs m 6,434 7,142 11.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 220.0, stands at 19.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.2 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 342.1 437.7
TTM Earnings per share Rs 7.6 23.1
Diluted earnings per share Rs 7.6 23.1
Price to Cash Flow x 11.5 6.2
TTM P/E ratio x 19.7 19.7
Price / Book Value ratio x 1.6 1.2
Market Cap Rs m 2,207 2,207
Dividends per share (Unadj.) Rs 3.5 1.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 1.9x during FY19, from 1.6x 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 14.1% during FY19, from 9.7% 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 6.6% during FY19, from 3.9% 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 129 154
Interest coverage x 1.6 1.9
Debt to equity ratio x 0.0 0.0
Return on assets % 3.9 6.6
Return on equity % 2.5 7.3
Return on capital employed % 9.7 14.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 291.7 to Rs 220.0, registering a loss of Rs 71.7 or around 24.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 17,954.9 (down 0.0%). Over the last one year it has moved up from 17,708.8 to 17,954.9, a gain of 246 points (up 1.4%).

Overall, the S&P BSE SENSEX is up 3.7% over the year.

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

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