TITAN 2019-20 Annual Report Analysis

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TITAN 2019-20 Annual Report Analysis
Fri, 7 Aug

TITAN has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

TITAN Income Statement Analysis

  • Operating income during the year rose 6.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 23.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.7% in FY20 as against 10.1% in FY19.
  • Depreciation charges increased by 113.7% and finance costs increased by 216.3% YoY, respectively.
  • Other income declined by 16.2% YoY.
  • Net profit for the year grew by 7.5% YoY.
  • Net profit margins during the year grew from 7.0% in FY19 to 7.0% in FY20.

TITAN Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 197,785 210,515 6.4%
Other income Rs m 1,829 1,532 -16.2%
Total Revenues Rs m 199,615 212,048 6.2%
Gross profit Rs m 19,893 24,626 23.8%
Depreciation Rs m 1,628 3,480 113.7%
Interest Rs m 525 1,662 216.3%
Profit before tax Rs m 19,569 21,017 7.4%
Tax Rs m 5,682 6,090 7.2%
Profit after tax Rs m 13,887 14,927 7.5%
Gross profit margin % 10.1 11.7
Effective tax rate % 29.0 29.0
Net profit margin % 7.0 7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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TITAN Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 56 billion as compared to Rs 55 billion in FY19, thereby witnessing an increase of 3.0%.
  • Long-term debt down at Rs 170 million as compared to Rs 317 million during FY19, a fall of 46.4%.
  • Current assets rose 6% and stood at Rs 101 billion, while fixed assets rose 66% and stood at Rs 27 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 135 billion as against Rs 117 billion during FY19, thereby witnessing a growth of 16%.

TITAN Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 60,701 66,687 9.9
 
Current Liabilities Rs m 54,619 56,266 3.0
Long-term Debt Rs m 317 170 -46.4
Total Liabilities Rs m 117,153 135,498 15.7
 
Current assets Rs m 95,873 101,203 5.6
Fixed Assets Rs m 15,984 26,517 65.9
Total Assets Rs m 117,153 135,498 15.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TITAN Cash Flow Statement Analysis

  • TITAN's cash flow from operating activities (CFO) during FY20 stood at Rs -3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs 2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -2 billion, an improvement of 51% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -4 billion from the Rs -425 million net cash flows seen during FY19.

TITAN Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 12,429 -3,474 -
Cash Flow from Investing Activities Rs m -7,983 2,350 -
Cash Flow from Financing Activities Rs m -4,888 -2,417 -
Net Cash Flow Rs m -425 -3,540 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for TITAN

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.8, an improvement from the EPS of Rs 15.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,124.1, stands at 66.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 14.0 times, while the price to sales ratio stands at 4.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 54.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 222.8 237.1
TTM Earnings per share Rs 15.6 16.8
Diluted earnings per share Rs 15.6 16.8
Price to Cash Flow x 64.3 54.2
TTM P/E ratio x 66.7 66.7
Price / Book Value ratio x 13.7 14.0
Market Cap Rs m 997,976 997,976
Dividends per share (Unadj.) Rs 5.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for TITAN

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.8x during FY20, from 1.8x during FY19. 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 deteriorated and stood at 13.6x during FY20, from 38.2x during FY19. 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 22.4% during FY20, from 22.9% during FY20. 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 33.9% during FY20, from 32.9% during FY19. 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 12.2% during FY20, from 12.3% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 1.8 1.8
Debtors’ Days Days 8 5
Interest coverage x 38.2 13.6
Debt to equity ratio x 0.0 0.0
Return on assets % 12.3 12.2
Return on equity % 22.9 22.4
Return on capital employed % 32.9 33.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

TITAN Share Price Performance

Over the last one year, TITAN share price has moved up from Rs 1,029.5 to Rs 1,124.1, registering a gain of Rs 94.6 or around 9.2%.

Overall, the S&P BSE SENSEX is up 2.7% over the year.

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

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Related Views on News

TITAN Announces Quarterly Results (2QFY21); Net Profit Down 44.6% (Quarterly Result Update)

Oct 30, 2020 | Updated on Oct 30, 2020

For the quarter ended September 2020, TITAN has posted a net profit of Rs 2 bn (down 44.6% YoY). Sales on the other hand came in at Rs 46 bn (down 2.3% YoY). Read on for a complete analysis of TITAN's quarterly results.

TITAN Announces Quarterly Results (4QFY20); Net Profit Down 1.5% (Quarterly Result Update)

Jun 10, 2020 | Updated on Jun 10, 2020

For the quarter ended March 2020, TITAN has posted a net profit of Rs 3 bn (down 1.5% YoY). Sales on the other hand came in at Rs 47 bn (down 3.6% YoY). Read on for a complete analysis of TITAN's quarterly results.

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