TITAGARH WAGONS 2018-19 Annual Report Analysis

Sun, 31 Mar

TITAGARH WAGONS 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.

TITAGARH WAGONS Income Statement Analysis

• Operating income during the year rose 35.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 85.1% YoY during the fiscal. Operating profit margins witnessed a growth and down at 1.0% in FY19 as against 9.2% in FY18.
• Depreciation charges decreased by 28.9% and finance costs increased by 55.2% YoY, respectively.
• Other income grew by 49.2% YoY.
• Net profit for the year declined by 84.7% YoY.
• Net profit margins during the year grew from 11.6% in FY18 to 1.3% in FY19.

TITAGARH WAGONS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	12,649	17,108	35.2%
Other income	Rs m	445	664	49.2%
Total Revenues	Rs m	13,095	17,772	35.7%
Gross profit	Rs m	-1,165	-173	-85.1%
Depreciation	Rs m	508	361	-28.9%
Interest	Rs m	441	684	55.2%
Profit before tax	Rs m	-1,669	-555	-66.8%
Tax	Rs m	-199	-330	65.3%
Profit after tax	Rs m	-1,469	-225	-84.7%
Gross profit margin	%	-9.2	-1.0
Effective tax rate	%	12.0	59.4
Net profit margin	%	-11.6	-1.3

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TITAGARH WAGONS Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 13 billion as compared to Rs 17 billion in FY18, thereby witnessing an decrease of -20.8%.
• Long-term debt stood at Rs 5 billion as compared to Rs 1 billion during FY18, a growth of 293.0%.
• Current assets fell 2% and stood at Rs 17 billion, while fixed assets fell 3% and stood at Rs 12 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 28 billion as against Rs 29 billion during FY18, thereby witnessing a fall of 2%.

TITAGARH WAGONS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	8,519	8,125	-4.6
Current Liabilities	Rs m	16,726	13,249	-20.8
Long-term Debt	Rs m	1,397	5,491	293.0
Total Liabilities	Rs m	29,056	28,478	-2.0
Current assets	Rs m	17,083	16,813	-1.6
Fixed Assets	Rs m	11,974	11,665	-2.6
Total Assets	Rs m	29,056	28,478	-2.0

TITAGARH WAGONS Cash Flow Statement Analysis

• TITAGARH WAGONS's cash flow from operating activities (CFO) during FY19 stood at Rs -1 billion, an improvement of 2.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -484 million, an improvement of 89.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 2 billion, an improvement of 12% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 403 million from the Rs 246 million net cash flows seen during FY18.

TITAGARH WAGONS 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	-1,211	-1,244	-
Cash Flow from Investing Activities	Rs m	-256	-484	-
Cash Flow from Financing Activities	Rs m	1,905	2,137	12.1%
Net Cash Flow	Rs m	246	403	63.8%

Current Valuations for TITAGARH WAGONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.9, an improvement from the EPS of Rs -12.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 70.0, stands at -10.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 75.7 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	109.5	148.1
TTM Earnings per share	Rs	-12.7	-1.9
Diluted earnings per share	Rs	-12.3	-1.9
Price to Cash Flow	x	-13.7	75.7
TTM P/E ratio	x	450.9	-10.1
Price / Book Value ratio	x	2.0	1.3
Market Cap	Rs m	17,007	10,340
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for TITAGARH WAGONS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x 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 improved and stood at 0.2x during FY19, from -2.8x 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 -2.8% during FY19, from -17.2% 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 0.9% during FY19, from -12.4% 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 1.6% during FY19, from -3.5% 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	1.0	1.3
Debtors’ Days	Days	797	734
Interest coverage	x	-2.8	0.2
Debt to equity ratio	x	0.2	0.7
Return on assets	%	-3.5	1.6
Return on equity	%	-17.2	-2.8
Return on capital employed	%	-12.4	0.9

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

TITAGARH WAGONS Share Price Performance

Over the last one year, TITAGARH WAGONS share price has moved down from Rs 110.0 to Rs 70.0, registering a loss of Rs 40.0 or around 36.3%.

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 TITAGARH WAGONS and quarterly results for TITAGARH WAGONS)

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