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TRF 2018-19 Annual Report Analysis
Sun, 31 Mar

TRF 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.

TRF Income Statement Analysis

  • Operating income during the year fell 58.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 122.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.4% in FY19 as against 10.0% in FY18.
  • Depreciation charges decreased by 32.1% and finance costs increased by 24.4% YoY, respectively.
  • Other income grew by 58.1% YoY.
  • Net profit for the year declined by 75.4% YoY.
  • Net profit margins during the year grew from 14.1% in FY18 to 8.4% in FY19.

TRF Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 10,036 4,133 -58.8%
Other income Rs m 59 93 58.1%
Total Revenues Rs m 10,094 4,225 -58.1%
Gross profit Rs m -1,003 223 -122.2%
Depreciation Rs m 50 34 -32.1%
Interest Rs m 489 609 24.4%
Profit before tax Rs m -1,484 -328 -77.9%
Tax Rs m -69 21 -130.6%
Profit after tax Rs m -1,415 -349 -75.4%
Gross profit margin % -10.0 5.4
Effective tax rate % 4.6 -6.4
Net profit margin % -14.1 -8.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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TRF Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 6 billion as compared to Rs 12 billion in FY18, thereby witnessing an decrease of -48.4%.
  • Long-term debt down at Rs 248 million as compared to Rs 340 million during FY18, a fall of 27.3%.
  • Current assets fell 43% and stood at Rs 5 billion, while fixed assets fell 19% and stood at Rs 2 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 7 billion as against Rs 11 billion during FY18, thereby witnessing a fall of 38%.

TRF Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m -2,008 -6 -99.7
 
Current Liabilities Rs m 12,422 6,412 -48.4
Long-term Debt Rs m 340 248 -27.3
Total Liabilities Rs m 10,907 6,804 -37.6
 
Current assets Rs m 8,421 4,796 -43.0
Fixed Assets Rs m 2,486 2,008 -19.2
Total Assets Rs m 10,907 6,804 -37.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TRF Cash Flow Statement Analysis

  • TRF's cash flow from operating activities (CFO) during FY19 stood at Rs -1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 1 billion, an improvement of 484.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -109 million, an improvement of 84% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 162 million from the Rs 104 million net cash flows seen during FY18.

TRF 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 552 -1,070 -
Cash Flow from Investing Activities Rs m 230 1,343 484.0%
Cash Flow from Financing Activities Rs m -700 -109 -
Net Cash Flow Rs m 104 162 55.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TRF

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -31.7, an improvement from the EPS of Rs -128.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 119.0, stands at -1.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -222.5 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at -6.6 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 912.3 375.7
TTM Earnings per share Rs -128.7 -31.7
Diluted earnings per share Rs -128.6 -31.7
Price to Cash Flow x -1.8 -6.6
TTM P/E ratio x 1.9 -1.4
Price / Book Value ratio x -1.4 -354.3
Market Cap Rs m 2,803 2,085
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TRF

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.7x during FY19, from 0.7x 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 0.5x during FY19, from -2.0x 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 5,919.0% during FY19, from 70.5% 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 116.4% during FY19, from 59.6% 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 3.8% during FY19, from -8.5% 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 0.7 0.7
Debtors’ Days Days 1,383 2,643
Interest coverage x -2.0 0.5
Debt to equity ratio x -0.2 -42.0
Return on assets % -8.5 3.8
Return on equity % 70.5 5,919.0
Return on capital employed % 59.6 116.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

TRF Share Price Performance

Over the last one year, TRF share price has moved down from Rs 222.7 to Rs 119.0, registering a loss of Rs 103.7 or around 46.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of TRF?

TRF currently trades at Rs 409.7 per share. You can check out the latest share price performance of TRF here...

What was the revenue of TRF in FY19? How does it compare to earlier years?

The revenues of TRF stood at Rs 4,225 m in FY19, which was down -58.1% compared to Rs 10,094 m reported in FY18.

TRF's revenue has fallen from Rs 9,421 m in FY16 to Rs 4,225 m in FY19.

Over the past 4 years, the revenue of TRF has grown at a CAGR of -23.5%.

What was the net profit of TRF in FY19? How does it compare to earlier years?

The net loss of TRF stood at Rs -349 m in FY19, which was down -75.4% compared to Rs -1,415 m reported in FY18.

This compares to a net loss of Rs -249 m in FY17 and a net loss of Rs -454 m in FY16.

Over the past 4 years, TRF net profit has grown at a CAGR of -8.4%.

What does the cash flow statement of TRF reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of TRF reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs -1,070 m as compared to Rs 552 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs 1,343 m as compared to Rs 230 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs -109 m as compared to Rs -700 m in FY18.

Here's the cash flow statement of TRF for the past 4 years.

(Rs m)FY16FY17FY18FY19
From Operations181,105552-1,070
From Investments36302301,343
From Financial Activity-335-1,095-700-109
Net Cashflow-27831104162

What does the Key Ratio analysis of TRF reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of TRF reveals:

  • Operating profit margins witnessed a fall and down at 5.4% in FY19 as against 10.0% in FY18.
  • Net profit margins grew from 14.1% in FY18 to 8.4% in FY19.
  • Debt to Equity ratio for FY19 stood at -42.0 as compared to -0.2 in FY18.

Here's the ratio/financial analysis of TRF for the past 4 years.

 FY16FY17FY18FY19
Operating Profit Margin (%)0.71.0-10.05.4
Net Profit Margin (%)-4.9-2.7-14.1-8.4
Debt to Equity Ratio (x)-3.6-2.0-0.2-42.0

Read: Latest Annual Report Analysis of TRF

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