TVS SRICHAKRA 2018-19 Annual Report Analysis

Sun, 31 Mar

TVS SRICHAKRA 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.

TVS SRICHAKRA Income Statement Analysis

• Operating income during the year rose 15.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.8% in FY19 as against 12.1% in FY18.
• Depreciation charges increased by 23.6% and finance costs increased by 19.5% YoY, respectively.
• Other income declined by 21.9% YoY.
• Net profit for the year declined by 12.0% YoY.
• Net profit margins during the year declined from 5.6% in FY18 to 4.2% in FY19.

TVS SRICHAKRA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	21,019	24,310	15.7%
Other income	Rs m	154	120	-21.9%
Total Revenues	Rs m	21,173	24,430	15.4%
Gross profit	Rs m	2,534	2,634	3.9%
Depreciation	Rs m	686	848	23.6%
Interest	Rs m	313	373	19.5%
Profit before tax	Rs m	1,690	1,533	-9.3%
Tax	Rs m	516	500	-3.1%
Profit after tax	Rs m	1,173	1,033	-12.0%
Gross profit margin	%	12.1	10.8
Effective tax rate	%	30.6	32.6
Net profit margin	%	5.6	4.2

TVS SRICHAKRA Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 9 billion as compared to Rs 6 billion in FY18, thereby witnessing an increase of 38.2%.
• Long-term debt stood at Rs 469 million as compared to Rs 77 million during FY18, a growth of 512.8%.
• Current assets rose 44% and stood at Rs 9 billion, while fixed assets rose 13% and stood at Rs 9 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 18 billion as against Rs 14 billion during FY18, thereby witnessing a growth of 27%.

TVS SRICHAKRA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	6,389	7,283	14.0
Current Liabilities	Rs m	6,378	8,815	38.2
Long-term Debt	Rs m	77	469	512.8
Total Liabilities	Rs m	14,261	18,093	26.9
Current assets	Rs m	6,443	9,258	43.7
Fixed Assets	Rs m	7,818	8,835	13.0
Total Assets	Rs m	14,261	18,093	26.9

TVS SRICHAKRA Cash Flow Statement Analysis

• TVS SRICHAKRA's cash flow from operating activities (CFO) during FY19 stood at Rs 640 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -1 billion, an improvement of 17.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 524 million, an improvement of 167% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -40 million from the Rs 46 million net cash flows seen during FY18.

TVS SRICHAKRA 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	1,855	640	-65.5%
Cash Flow from Investing Activities	Rs m	-1,023	-1,204	-
Cash Flow from Financing Activities	Rs m	-786	524	-
Net Cash Flow	Rs m	46	-40	-

Current Valuations for TVS SRICHAKRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 134.8, an decline from the EPS of Rs 153.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,195.6, stands at 16.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 12.1 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	2,744.0	3,173.6
TTM Earnings per share	Rs	153.2	134.8
Diluted earnings per share	Rs	153.2	134.9
Price to Cash Flow	x	13.2	12.1
TTM P/E ratio	x	20.9	16.3
Price / Book Value ratio	x	4.4	3.1
Market Cap	Rs m	27,868	22,722
Dividends per share (Unadj.)	Rs	40.0	40.0

Ratio Analysis for TVS SRICHAKRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY19, from 1.0x 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 5.1x during FY19, from 6.4x 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 14.2% during FY19, from 18.4% 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 24.6% during FY19, from 31.0% 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 7.8% during FY19, from 10.4% 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	1.0	1.1
Debtors’ Days	Days	4	5
Interest coverage	x	6.4	5.1
Debt to equity ratio	x	0.0	0.1
Return on assets	%	10.4	7.8
Return on equity	%	18.4	14.2
Return on capital employed	%	31.0	24.6

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

TVS SRICHAKRA Share Price Performance

Over the last one year, TVS SRICHAKRA share price has moved down from Rs 3,215.5 to Rs 2,195.6, registering a loss of Rs 1,019.9 or around 31.7%.

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

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

Read: Latest Annual Report Analysis of TVS SRICHAKRA