TATA SPONGE 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

TATA SPONGE 2018-19 Annual Report Analysis
Thu, 27 Jun

TATA SPONGE 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 SPONGE Income Statement Analysis

  • Operating income during the year rose 24.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 20.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.6% in FY19 as against 22.8% in FY18.
  • Depreciation charges decreased by 5.9% and finance costs decreased by 7.1% YoY, respectively.
  • Other income grew by 34.1% YoY.
  • Net profit for the year declined by 11.7% YoY.
  • Net profit margins during the year declined from 16.7% in FY18 to 11.8% in FY19.

TATA SPONGE Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 8,002 9,921 24.0%
Other income Rs m 431 577 34.1%
Total Revenues Rs m 8,432 10,498 24.5%
Gross profit Rs m 1,827 1,447 -20.8%
Depreciation Rs m 123 116 -5.9%
Interest Rs m 33 30 -7.1%
Profit before tax Rs m 2,102 1,878 -10.7%
Tax Rs m 693 634 -8.5%
Profit after tax Rs m 1,409 1,244 -11.7%
Gross profit margin % 22.8 14.6
Effective tax rate % 33.0 33.8
Net profit margin % 16.7 11.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TATA SPONGE Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 2 billion as compared to Rs 2 billion in FY18, thereby witnessing an increase of 6.3%.
  • Current assets fell 3% and stood at Rs 7 billion, while fixed assets rose 47% and stood at Rs 2 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 13 billion as against Rs 12 billion during FY18, thereby witnessing a growth of 9%.

TATA SPONGE Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 9,866 10,836 9.8
 
Current Liabilities Rs m 1,982 2,107 6.3
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 12,144 13,245 9.1
 
Current assets Rs m 7,206 6,962 -3.4
Fixed Assets Rs m 1,548 2,277 47.1
Total Assets Rs m 12,144 13,245 9.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TATA SPONGE Cash Flow Statement Analysis

  • TATA SPONGE's cash flow from operating activities (CFO) during FY19 stood at Rs 1 billion, an improvement of 144.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -124 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -371 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 507 million from the Rs -2 billion net cash flows seen during FY18.

TATA SPONGE 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 411 1,003 144.0%
Cash Flow from Investing Activities Rs m -2,131 -124 -
Cash Flow from Financing Activities Rs m -202 -371 -
Net Cash Flow Rs m -1,922 507 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for TATA SPONGE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 80.8, an decline from the EPS of Rs 91.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 557.0, stands at 6.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.3 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 519.6 644.2
TTM Earnings per share Rs 91.5 80.8
Diluted earnings per share Rs 91.5 80.8
Price to Cash Flow x 5.6 6.3
TTM P/E ratio x 6.9 6.9
Price / Book Value ratio x 1.5 1.4
Market Cap Rs m 8,577 8,577
Dividends per share (Unadj.) Rs 20.0 12.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for TATA SPONGE

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.3x during FY19, from 3.6x 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 deteriorated and stood at 63.2x during FY19, from 65.7x 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 11.5% during FY19, from 14.3% 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 17.6% during FY19, from 21.6% 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 declined and down at 9.6% during FY19, from 11.9% 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 3.6 3.3
Debtors’ Days Days 27 29
Interest coverage x 65.7 63.2
Debt to equity ratio x 0.0 0.0
Return on assets % 11.9 9.6
Return on equity % 14.3 11.5
Return on capital employed % 21.6 17.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

TATA SPONGE Share Price Performance

Over the last one year, TATA SPONGE share price has moved up from Rs 1,010.1 to Rs 557.0, registering a loss of Rs 453.2 or around 44.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 11,270.4 (up 0.1%). Over the last one year it has moved down from 12,683.9 to 11,270.4, a loss of 1,413 points (down 11.1%).

Overall, the S&P BSE SENSEX is up 11.9% over the year.

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

Equitymaster requests your view! Post a comment on "TATA SPONGE 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

TATA SPONGE Announces Quarterly Results (1QFY20); Net Profit Down 288.8% (Quarterly Result Update)

Jul 31, 2019 | Updated on Jul 31, 2019

For the quarter ended June 2019, TATA SPONGE has posted a net profit of Rs 860 m (down 288.8% YoY). Sales on the other hand came in at Rs 7 bn (up 170.0% YoY). Read on for a complete analysis of TATA SPONGE's quarterly results.

TATA SPONGE Announces Quarterly Results (4QFY19); Net Profit Down 47.8% (Quarterly Result Update)

Apr 22, 2019 | Updated on Apr 22, 2019

For the quarter ended March 2019, TATA SPONGE has posted a net profit of Rs 244 m (down 47.8% YoY). Sales on the other hand came in at Rs 3 bn (up 4.3% YoY). Read on for a complete analysis of TATA SPONGE's quarterly results.

TATA SPONGE 2017-18 Annual Report Analysis (Annual Result Update)

Dec 21, 2018 | Updated on Dec 21, 2018

Here's an analysis of the annual report of TATA SPONGE for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of TATA SPONGE. Also includes updates on the valuation of TATA SPONGE.

More Views on News

Most Popular

My 3 Best Small-cap Stocks to Get Rich in this Market Rebound(Profit Hunter)

Oct 14, 2019

This is once in a decade opportunity to make a killing from smallcap rebound.

Finally, Is the Share Price of Yes Bank Ready for a Rebound?(The 5 Minute Wrapup)

Oct 7, 2019

Here's what every individual investor must know about Yes Bank...

Two Stocks to Buy in the Great Indian Festival(Profit Hunter)

Oct 11, 2019

Discounts are not just limited to E-tailers. You can buy stocks at 50% off too. Here are two stocks to buy now.

The One Stock I Like in this Market(The 5 Minute Wrapup)

Oct 10, 2019

There are rare periods in markets when you get good quality stocks at attractive valuations. Is this one such period?

5 Smart Money Stocks to Profit from the Market Rebound(The 5 Minute Wrapup)

Oct 11, 2019

Now is the time to put money in these 5 stocks to take advantage of the recovery in the economy and the markets.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2020
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK TATA SPONGE

  • Track your investment in TATA SPONGE with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

TATA SPONGE - GANDHI SPECIAL TUBES COMPARISON

COMPARE TATA SPONGE WITH

MARKET STATS