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TVS SRICHAKRA 2019-20 Annual Report Analysis

Fri, 11 Dec

TVS SRICHAKRA 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.

TVS SRICHAKRA Income Statement Analysis

• Operating income during the year fell 13.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 17.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.2% in FY20 as against 10.8% in FY19.
• Depreciation charges increased by 18.2% and finance costs increased by 6.1% YoY, respectively.
• Other income declined by 15.1% YoY.
• Net profit for the year declined by 20.3% YoY.
• Net profit margins during the year declined from 4.2% in FY19 to 3.9% in FY20.

TVS SRICHAKRA Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	24,310	21,037	-13.5%
Other income	Rs m	120	102	-15.1%
Total Revenues	Rs m	24,430	21,139	-13.5%
Gross profit	Rs m	2,618	2,153	-17.8%
Depreciation	Rs m	848	1,002	18.2%
Interest	Rs m	357	379	6.1%
Profit before tax	Rs m	1,533	874	-43.0%
Tax	Rs m	500	52	-89.7%
Profit after tax	Rs m	1,033	823	-20.3%
Gross profit margin	%	10.8	10.2
Effective tax rate	%	32.6	5.9
Net profit margin	%	4.2	3.9

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TVS SRICHAKRA Balance Sheet Analysis

• The company's current liabilities during FY20 down at Rs 6 billion as compared to Rs 9 billion in FY19, thereby witnessing an decrease of -30.3%.
• Long-term debt stood at Rs 1 billion as compared to Rs 469 million during FY19, a growth of 175.6%.
• Current assets fell 21% and stood at Rs 7 billion, while fixed assets rose 4% and stood at Rs 7 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 16 billion as against Rs 18 billion during FY19, thereby witnessing a fall of 11%.

TVS SRICHAKRA Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	7,283	7,449	2.3
Current Liabilities	Rs m	8,815	6,146	-30.3
Long-term Debt	Rs m	469	1,292	175.6
Total Liabilities	Rs m	18,093	16,162	-10.7
Current assets	Rs m	9,258	7,299	-21.2
Fixed Assets	Rs m	6,902	7,199	4.3
Total Assets	Rs m	18,093	16,162	-10.7

TVS SRICHAKRA Cash Flow Statement Analysis

• TVS SRICHAKRA's cash flow from operating activities (CFO) during FY20 stood at Rs 3 billion, an improvement of 365.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -1 billion, an improvement of 11.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs -51 million from the Rs -40 million net cash flows seen during FY19.

TVS SRICHAKRA 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	640	2,977	365.1%
Cash Flow from Investing Activities	Rs m	-1,204	-1,342	-
Cash Flow from Financing Activities	Rs m	524	-1,686	-
Net Cash Flow	Rs m	-40	-51	-

Current Valuations for TVS SRICHAKRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 107.4, an decline from the EPS of Rs 134.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,081.0, stands at 18.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 8.7 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	3,173.6	2,746.4
TTM Earnings per share	Rs	134.8	107.4
Diluted earnings per share	Rs	134.9	107.4
Price to Cash Flow	x	8.5	8.7
TTM P/E ratio	x	18.5	18.5
Price / Book Value ratio	x	3.1	1.6
Market Cap	Rs m	15,940	15,934
Dividends per share (Unadj.)	Rs	40.0	20.1

Ratio Analysis for TVS SRICHAKRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY20, from 1.1x 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 3.3x during FY20, from 5.3x 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 11.0% during FY20, from 14.2% 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 declined and down at 14.3% during FY20, from 24.4% 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 declined and down at 7.4% during FY20, from 7.7% 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	1.1	1.2
Debtors’ Days	Days	51	36
Interest coverage	x	5.3	3.3
Debt to equity ratio	x	0.1	0.2
Return on assets	%	7.7	7.4
Return on equity	%	14.2	11.0
Return on capital employed	%	24.4	14.3

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 up from Rs 1,599.0 to Rs 2,081.0, registering a gain of Rs 482.1 or around 30.1%.

Overall, the S&P BSE SENSEX is up 13.8% over the year.

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