V GUARD INDUSTRIES 2018-19 Annual Report Analysis

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V GUARD INDUSTRIES 2018-19 Annual Report Analysis
Mon, 23 Sep

V GUARD INDUSTRIES 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.

V GUARD INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 11.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 17.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.6% in FY19 as against 8.2% in FY18.
  • Depreciation charges increased by 16.9% and finance costs decreased by 13.7% YoY, respectively.
  • Other income grew by 81.6% YoY.
  • Net profit for the year grew by 24.4% YoY.
  • Net profit margins during the year grew from 5.8% in FY18 to 6.4% in FY19.

V GUARD INDUSTRIES Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 23,257 25,940 11.5%
Other income Rs m 110 201 81.6%
Total Revenues Rs m 23,368 26,141 11.9%
Gross profit Rs m 1,904 2,243 17.8%
Depreciation Rs m 197 230 16.9%
Interest Rs m 20 18 -13.7%
Profit before tax Rs m 1,797 2,196 22.2%
Tax Rs m 446 516 15.5%
Profit after tax Rs m 1,351 1,680 24.4%
Gross profit margin % 8.2 8.6
Effective tax rate % 24.8 23.5
Net profit margin % 5.8 6.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



V GUARD INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 5 billion as compared to Rs 4 billion in FY18, thereby witnessing an increase of 12.4%.
  • Current assets rose 19% and stood at Rs 11 billion, while fixed assets rose 6% and stood at Rs 2 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 14 billion as against Rs 12 billion during FY18, thereby witnessing a growth of 17%.

V GUARD INDUSTRIES Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 7,496 8,994 20.0
 
Current Liabilities Rs m 4,050 4,550 12.4
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 11,708 13,747 17.4
 
Current assets Rs m 9,163 10,892 18.9
Fixed Assets Rs m 2,252 2,385 5.9
Total Assets Rs m 11,708 13,747 17.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



V GUARD INDUSTRIES Cash Flow Statement Analysis

  • V GUARD INDUSTRIES's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion, an improvement of 199.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -508 million, an improvement of 106.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -252 million, an improvement of 32% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 803 million from the Rs -96 million net cash flows seen during FY18.

V GUARD INDUSTRIES 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 523 1,563 199.1%
Cash Flow from Investing Activities Rs m -246 -508 -
Cash Flow from Financing Activities Rs m -373 -252 -
Net Cash Flow Rs m -96 803 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for V GUARD INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.9, an improvement from the EPS of Rs 3.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 223.4, stands at 51.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 10.4 times, while the price to sales ratio stands at 3.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 49.5 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 54.6 60.8
TTM Earnings per share Rs 3.2 3.9
Diluted earnings per share Rs 3.2 4.0
Price to Cash Flow x 61.5 49.5
TTM P/E ratio x 51.8 51.5
Price / Book Value ratio x 11.8 10.4
Market Cap Rs m 95,097 94,518
Dividends per share (Unadj.) Rs 0.7 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for V GUARD INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.4x during FY19, from 2.3x 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 125.8x during FY19, from 89.1x 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 improved and stood at 18.7% during FY19, from 18.0% 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 24.6% during FY19, from 24.2% 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 improved and stood at 12.4% during FY19, from 11.7% 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 2.3 2.4
Debtors’ Days Days 71 66
Interest coverage x 89.1 125.8
Debt to equity ratio x 0.0 0.0
Return on assets % 11.7 12.4
Return on equity % 18.0 18.7
Return on capital employed % 24.2 24.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how V GUARD INDUSTRIES has performed over the last 5 years, please visit here.

V GUARD INDUSTRIES Share Price Performance

Over the last one year, V GUARD INDUSTRIES share price has moved up from Rs 188.7 to Rs 223.4, registering a gain of Rs 34.8 or around 18.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 19,035.1 (up 5.3%). Over the last one year it has moved up from 18,058.2 to 19,035.1, a gain of 977 points (up 5.4%).

Overall, the S&P BSE SENSEX is up 5.3% over the year.

(To know more, check out historical annual results for V GUARD INDUSTRIES and quarterly results for V GUARD INDUSTRIES)

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