TATA GLOBAL 2018-19 Annual Report Analysis

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TATA GLOBAL 2018-19 Annual Report Analysis
Mon, 27 May

TATA GLOBAL 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.

TATA GLOBAL Income Statement Analysis

  • Operating income during the year rose 6.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 6.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.8% in FY19 as against 12.3% in FY18.
  • Depreciation charges increased by 5.6% and finance costs increased by 22.7% YoY, respectively.
  • Other income grew by 66.9% YoY.
  • Net profit for the year declined by 17.9% YoY.
  • Net profit margins during the year declined from 8.1% in FY18 to 6.2% in FY19.

TATA GLOBAL Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 68,132 72,515 6.4%
Other income Rs m 942 1,571 66.9%
Total Revenues Rs m 69,074 74,086 7.3%
Gross profit Rs m 8,389 7,859 -6.3%
Depreciation Rs m 1,160 1,226 5.6%
Interest Rs m 428 525 22.7%
Profit before tax Rs m 7,743 7,680 -0.8%
Tax Rs m 1,859 2,609 40.4%
Profit after tax Rs m 5,565 4,570 -17.9%
Gross profit margin % 12.3 10.8
Effective tax rate % 24.0 34.0
Net profit margin % 8.1 6.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TATA GLOBAL Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 15 billion as compared to Rs 16 billion in FY18, thereby witnessing an decrease of -8.1%.
  • Long-term debt stood at Rs 8 billion as compared to Rs 7 billion during FY18, a growth of 20.0%.
  • Current assets rose 0% and stood at Rs 45 billion, while fixed assets rose 14% and stood at Rs 56 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 109 billion as against Rs 106 billion during FY18, thereby witnessing a growth of 3%.

TATA GLOBAL Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 70,316 73,317 4.3
 
Current Liabilities Rs m 15,860 14,582 -8.1
Long-term Debt Rs m 6,560 7,872 20.0
Total Liabilities Rs m 105,922 109,387 3.3
 
Current assets Rs m 44,972 45,108 0.3
Fixed Assets Rs m 49,333 56,253 14.0
Total Assets Rs m 105,922 109,387 3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TATA GLOBAL Cash Flow Statement Analysis

  • TATA GLOBAL's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 733 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 393 million from the Rs 3 billion net cash flows seen during FY18.

TATA GLOBAL 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 3,556 2,099 -41.0%
Cash Flow from Investing Activities Rs m -741 733 -
Cash Flow from Financing Activities Rs m -304 -2,237 -
Net Cash Flow Rs m 2,941 393 -86.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for TATA GLOBAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.2, an decline from the EPS of Rs 8.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 234.7, stands at 31.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 2.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 24.3 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 108.0 114.9
TTM Earnings per share Rs 8.8 7.2
Diluted earnings per share Rs 9.0 7.4
Price to Cash Flow x 21.7 24.3
TTM P/E ratio x 31.6 31.0
Price / Book Value ratio x 2.1 2.1
Market Cap Rs m 148,126 145,138
Dividends per share (Unadj.) Rs 2.5 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for TATA GLOBAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.1x during FY19, from 2.8x 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 deteriorated and stood at 15.6x during FY19, from 19.1x 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 6.2% during FY19, from 7.9% 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 9.5% during FY19, from 10.2% 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 4.7% during FY19, from 5.7% 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 2.8 3.1
Debtors’ Days Days 35 34
Interest coverage x 19.1 15.6
Debt to equity ratio x 0.1 0.1
Return on assets % 5.7 4.7
Return on equity % 7.9 6.2
Return on capital employed % 10.2 9.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

TATA GLOBAL Share Price Performance

Over the last one year, TATA GLOBAL share price has moved up from Rs 257.0 to Rs 234.7, registering a loss of Rs 22.3 or around 8.7%.

Overall, the S&P BSE SENSEX is up 14.6% over the year.

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

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