VADILAL INDUSTRIES 2018-19 Annual Report Analysis

Sun, 31 Mar

VADILAL 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.

VADILAL INDUSTRIES Income Statement Analysis

• Operating income during the year rose 4.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 49.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.7% in FY19 as against 8.9% in FY18.
• Depreciation charges increased by 4.8% and finance costs decreased by 8.1% YoY, respectively.
• Other income grew by 73.8% YoY.
• Net profit for the year grew by 113.0% YoY.
• Net profit margins during the year grew from 2.9% in FY18 to 5.9% in FY19.

VADILAL INDUSTRIES Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	5,425	5,671	4.5%
Other income	Rs m	63	109	73.8%
Total Revenues	Rs m	5,487	5,780	5.3%
Gross profit	Rs m	481	720	49.5%
Depreciation	Rs m	161	169	4.8%
Interest	Rs m	153	141	-8.1%
Profit before tax	Rs m	229	519	126.1%
Tax	Rs m	73	185	154.2%
Profit after tax	Rs m	157	334	113.0%
Gross profit margin	%	8.9	12.7
Effective tax rate	%	31.7	35.7
Net profit margin	%	2.9	5.9

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VADILAL INDUSTRIES 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 10.4%.
• Long-term debt down at Rs 580 million as compared to Rs 710 million during FY18, a fall of 18.3%.
• Current assets rose 12% and stood at Rs 2 billion, while fixed assets rose 7% and stood at Rs 3 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 5 billion as against Rs 4 billion during FY18, thereby witnessing a growth of 9%.

VADILAL INDUSTRIES Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	1,753	2,074	18.3
Current Liabilities	Rs m	1,634	1,803	10.4
Long-term Debt	Rs m	710	580	-18.3
Total Liabilities	Rs m	4,394	4,770	8.6
Current assets	Rs m	1,621	1,816	12.0
Fixed Assets	Rs m	2,773	2,954	6.5
Total Assets	Rs m	4,394	4,770	8.6

VADILAL INDUSTRIES Cash Flow Statement Analysis

• VADILAL INDUSTRIES's cash flow from operating activities (CFO) during FY19 stood at Rs 444 million, an improvement of 167.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -313 million, an improvement of 30.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -96 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 36 million from the Rs -13 million net cash flows seen during FY18.

VADILAL 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	166	444	167.6%
Cash Flow from Investing Activities	Rs m	-240	-313	-
Cash Flow from Financing Activities	Rs m	61	-96	-
Net Cash Flow	Rs m	-13	36	-

Current Valuations for VADILAL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 46.4, an improvement from the EPS of Rs 21.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 607.8, stands at 13.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 9.7 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	754.5	788.8
TTM Earnings per share	Rs	21.8	46.4
Diluted earnings per share	Rs	21.8	46.4
Price to Cash Flow	x	19.1	9.7
TTM P/E ratio	x	41.0	13.1
Price / Book Value ratio	x	4.0	2.3
Market Cap	Rs m	6,978	4,852
Dividends per share (Unadj.)	Rs	1.3	1.3

Ratio Analysis for VADILAL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x 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 4.7x during FY19, from 2.5x 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 16.1% during FY19, from 8.9% 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 24.8% during FY19, from 15.5% 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 9.9% during FY19, from 7.0% 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	1.0
Debtors’ Days	Days	283	200
Interest coverage	x	2.5	4.7
Debt to equity ratio	x	0.4	0.3
Return on assets	%	7.0	9.9
Return on equity	%	8.9	16.1
Return on capital employed	%	15.5	24.8

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

VADILAL INDUSTRIES Share Price Performance

Over the last one year, VADILAL INDUSTRIES share price has moved down from Rs 846.8 to Rs 607.8, registering a loss of Rs 239.0 or around 28.2%.

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

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

Read: Latest Annual Report Analysis of VADILAL INDUSTRIES