TTK PRESTIGE 2018-19 Annual Report Analysis

Tue, 23 Jul

TTK PRESTIGE 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.

TTK PRESTIGE Income Statement Analysis

• Operating income during the year rose 13.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.9% in FY19 as against 13.3% in FY18.
• Depreciation charges increased by 3.3% and finance costs increased by 10.0% YoY, respectively.
• Other income grew by 103.1% YoY.
• Net profit for the year declined by 27.0% YoY.
• Net profit margins during the year declined from 14.0% in FY18 to 9.0% in FY19.

TTK PRESTIGE Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	18,649	21,069	13.0%
Other income	Rs m	124	252	103.1%
Total Revenues	Rs m	18,773	21,322	13.6%
Gross profit	Rs m	2,474	2,920	18.0%
Depreciation	Rs m	256	265	3.3%
Interest	Rs m	41	45	10.0%
Profit before tax	Rs m	2,302	2,863	24.4%
Tax	Rs m	956	940	-1.8%
Profit after tax	Rs m	2,635	1,924	-27.0%
Gross profit margin	%	13.3	13.9
Effective tax rate	%	41.6	32.8
Net profit margin	%	14.0	9.0

TTK PRESTIGE Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 4 billion as compared to Rs 4 billion in FY18, thereby witnessing an decrease of -6.4%.
• Long-term debt down at Rs 543 million as compared to Rs 923 million during FY18, a fall of 41.2%.
• Current assets rose 2% and stood at Rs 11 billion, while fixed assets rose 6% and stood at Rs 5 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 17 billion as against Rs 16 billion during FY18, thereby witnessing a growth of 5%.

TTK PRESTIGE Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	10,197	11,663	14.4
Current Liabilities	Rs m	4,103	3,840	-6.4
Long-term Debt	Rs m	923	543	-41.2
Total Liabilities	Rs m	15,693	16,519	5.3
Current assets	Rs m	10,473	10,715	2.3
Fixed Assets	Rs m	4,943	5,226	5.7
Total Assets	Rs m	15,693	16,519	5.3

TTK PRESTIGE Cash Flow Statement Analysis

• TTK PRESTIGE's cash flow from operating activities (CFO) during FY19 stood at Rs 940 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -2 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -843 million, an improvement of 25% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 95 million from the Rs 110 million net cash flows seen during FY18.

TTK PRESTIGE 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	1,268	940	-25.9%
Cash Flow from Investing Activities	Rs m	-31	-2	-
Cash Flow from Financing Activities	Rs m	-1,127	-843	-
Net Cash Flow	Rs m	110	95	-13.7%

Current Valuations for TTK PRESTIGE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 166.5, an decline from the EPS of Rs 228.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,980.0, stands at 24.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.1 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 31.7 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	1,614.6	1,824.2
TTM Earnings per share	Rs	228.1	166.5
Diluted earnings per share	Rs	227.1	165.8
Price to Cash Flow	x	23.9	31.7
TTM P/E ratio	x	24.5	24.7
Price / Book Value ratio	x	8.4	7.1
Market Cap	Rs m	69,069	69,368
Dividends per share (Unadj.)	Rs	30.0	30.0

Ratio Analysis for TTK PRESTIGE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY19, from 2.6x 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 64.6x during FY19, from 57.3x 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 declined and down at 16.5% during FY19, from 25.8% 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 declined and down at 23.8% during FY19, from 32.7% 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 declined and down at 11.9% during FY19, from 17.1% 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	2.6	2.8
Debtors’ Days	Days	51	53
Interest coverage	x	57.3	64.6
Debt to equity ratio	x	0.1	0.0
Return on assets	%	17.1	11.9
Return on equity	%	25.8	16.5
Return on capital employed	%	32.7	23.8

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

TTK PRESTIGE Share Price Performance

Over the last one year, TTK PRESTIGE share price has moved up from Rs 4,874.3 to Rs 5,980.0, registering a gain of Rs 1,105.7 or around 22.7%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 22,987.8 (up 0.9%). Over the last one year it has moved up from 20,232.6 to 22,987.8, a gain of 2,755 points (up 13.6%).

Overall, the S&P BSE SENSEX is up 3.8% over the year.

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