TIMKEN INDIA 2018-19 Annual Report Analysis

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TIMKEN INDIA 2018-19 Annual Report Analysis
Fri, 19 Jul

TIMKEN INDIA 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.

TIMKEN INDIA Income Statement Analysis

  • Operating income during the year rose 34.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 76.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.3% in FY19 as against 13.2% in FY18.
  • Depreciation charges increased by 83.9% and finance costs increased by 44.3% YoY, respectively.
  • Other income declined by 21.9% YoY.
  • Net profit for the year grew by 61.6% YoY.
  • Net profit margins during the year grew from 7.3% in FY18 to 8.8% in FY19.

TIMKEN INDIA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 12,340 16,644 34.9%
Other income Rs m 208 163 -21.9%
Total Revenues Rs m 12,549 16,807 33.9%
Gross profit Rs m 1,633 2,886 76.8%
Depreciation Rs m 431 793 83.9%
Interest Rs m 12 18 44.3%
Profit before tax Rs m 1,398 2,238 60.2%
Tax Rs m 478 752 57.4%
Profit after tax Rs m 920 1,486 61.6%
Gross profit margin % 13.2 17.3
Effective tax rate % 34.2 33.6
Net profit margin % 7.3 8.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TIMKEN INDIA Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 3 billion as compared to Rs 2 billion in FY18, thereby witnessing an increase of 28.6%.
  • Current assets rose 35% and stood at Rs 9 billion, while fixed assets rose 65% and stood at Rs 5 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 18 billion as against Rs 10 billion during FY18, thereby witnessing a growth of 81%.

TIMKEN INDIA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 7,023 13,407 90.9
 
Current Liabilities Rs m 2,413 3,103 28.6
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 9,789 17,757 81.4
 
Current assets Rs m 6,480 8,762 35.2
Fixed Assets Rs m 3,048 5,017 64.6
Total Assets Rs m 9,789 17,757 81.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TIMKEN INDIA Cash Flow Statement Analysis

  • TIMKEN INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion, an improvement of 538.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -1 billion, an improvement of 71.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -233 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 1 billion from the Rs -270 million net cash flows seen during FY18.

TIMKEN INDIA 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 390 2,488 538.1%
Cash Flow from Investing Activities Rs m -638 -1,097 -
Cash Flow from Financing Activities Rs m -19 -233 -
Net Cash Flow Rs m -270 1,195 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for TIMKEN INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.8, an improvement from the EPS of Rs 13.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 710.0, stands at 32.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 3.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.2 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 181.5 221.3
TTM Earnings per share Rs 13.5 19.8
Diluted earnings per share Rs 13.5 21.9
Price to Cash Flow x 35.7 21.2
TTM P/E ratio x 32.2 32.2
Price / Book Value ratio x 7.9 3.7
Market Cap Rs m 48,280 48,273
Dividends per share (Unadj.) Rs 1.0 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for TIMKEN INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.8x during FY19, from 2.7x 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 128.2x during FY19, from 115.5x 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 declined and down at 11.1% during FY19, from 13.1% 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 declined and down at 16.8% during FY19, from 20.1% 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 8.5% during FY19, from 9.5% 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 2.7 2.8
Debtors’ Days Days 66 66
Interest coverage x 115.5 128.2
Debt to equity ratio x 0.0 0.0
Return on assets % 9.5 8.5
Return on equity % 13.1 11.1
Return on capital employed % 20.1 16.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

TIMKEN INDIA Share Price Performance

Over the last one year, TIMKEN INDIA share price has moved down from Rs 718.4 to Rs 710.0, registering a loss of Rs 8.4 or around 1.2%.

Overall, the S&P BSE SENSEX is up 6.4% over the year.

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

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