TRENT 2019-20 Annual Report Analysis

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TRENT 2019-20 Annual Report Analysis
Fri, 11 Dec

TRENT 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.

TRENT Income Statement Analysis

  • Operating income during the year rose 32.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 138.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.6% in FY20 as against 8.7% in FY19.
  • Depreciation charges increased by 378.5% and finance costs increased by 568.8% YoY, respectively.
  • Other income grew by 254.0% YoY.
  • Net profit for the year grew by 11.7% YoY.
  • Net profit margins during the year declined from 3.6% in FY19 to 2.9% in FY20.

TRENT Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 26,302 34,860 32.5%
Other income Rs m 408 1,445 254.0%
Total Revenues Rs m 26,711 36,305 35.9%
Gross profit Rs m 2,277 5,440 138.9%
Depreciation Rs m 517 2,472 378.5%
Interest Rs m 368 2,458 568.8%
Profit before tax Rs m 1,801 1,954 8.5%
Tax Rs m 736 590 -19.8%
Profit after tax Rs m 948 1,060 11.7%
Gross profit margin % 8.7 15.6
Effective tax rate % 40.9 30.2
Net profit margin % 3.6 2.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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TRENT Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 5 billion as compared to Rs 6 billion in FY19, thereby witnessing an decrease of -15.1%.
  • Long-term debt stood at Rs 3 billion as compared to Rs 3 billion during FY19, a growth of 0.1%.
  • Current assets rose 94% and stood at Rs 17 billion, while fixed assets rose 269% and stood at Rs 28 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 55 billion as against Rs 26 billion during FY19, thereby witnessing a growth of 115%.

TRENT Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 16,465 23,880 45.0
 
Current Liabilities Rs m 5,740 4,873 -15.1
Long-term Debt Rs m 2,996 2,997 0.1
Total Liabilities Rs m 25,588 55,067 115.2
 
Current assets Rs m 8,783 17,035 93.9
Fixed Assets Rs m 7,494 27,618 268.5
Total Assets Rs m 25,588 55,067 115.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TRENT Cash Flow Statement Analysis

  • TRENT's cash flow from operating activities (CFO) during FY20 stood at Rs 4 billion, an improvement of 1,593.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -8 billion, an improvement of 2,134.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs 5 billion, an improvement of 1,139% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 72 million from the Rs 214 million net cash flows seen during FY19.

TRENT 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 210 3,553 1,593.6%
Cash Flow from Investing Activities Rs m -370 -8,278 -
Cash Flow from Financing Activities Rs m 375 4,641 1,138.7%
Net Cash Flow Rs m 214 72 -66.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for TRENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.8, an improvement from the EPS of Rs 28.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 687.7, stands at 147.8 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 59.6 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 791.5 980.9
TTM Earnings per share Rs 28.5 29.8
Diluted earnings per share Rs 2.9 3.2
Price to Cash Flow x 14.4 59.6
TTM P/E ratio x 14.8 147.8
Price / Book Value ratio x 0.7 0.8
Market Cap Rs m 22,851 228,506
Dividends per share (Unadj.) Rs 1.3 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for TRENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.5x during FY20, from 1.5x 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 1.8x during FY20, from 5.9x 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 4.4% during FY20, from 5.8% 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 15.3% during FY20, from 10.5% 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 improved and stood at 6.4% during FY20, from 5.1% 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 1.5 3.5
Debtors’ Days Days 2 2
Interest coverage x 5.9 1.8
Debt to equity ratio x 0.2 0.1
Return on assets % 5.1 6.4
Return on equity % 5.8 4.4
Return on capital employed % 10.5 15.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

TRENT Share Price Performance

Over the last one year, TRENT share price has moved up from Rs 496.7 to Rs 687.7, registering a gain of Rs 191.0 or around 38.5%.

Overall, the S&P BSE SENSEX is up 13.6% over the year.

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

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TRENT LTD Announces Quarterly Results (3QFY20); Net Profit Up 38.4% (Quarterly Result Update)

Feb 7, 2020 | Updated on Feb 7, 2020

For the quarter ended December 2019, TRENT LTD has posted a net profit of Rs 557 m (up 38.4% YoY). Sales on the other hand came in at Rs 9 bn (up 32.5% YoY). Read on for a complete analysis of TRENT LTD's quarterly results.

TRENT LTD Announces Quarterly Results (2QFY20); Net Profit Up 16.3% (Quarterly Result Update)

Nov 14, 2019 | Updated on Nov 14, 2019

For the quarter ended September 2019, TRENT LTD has posted a net profit of Rs 383 m (up 16.3% YoY). Sales on the other hand came in at Rs 8 bn (up 32.8% YoY). Read on for a complete analysis of TRENT LTD's quarterly results.

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Jul 4, 2019 | Updated on Jul 4, 2019

Here's an analysis of the annual report of TRENT LTD for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of TRENT LTD. Also includes updates on the valuation of TRENT LTD.

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