VOLTAS 2019-20 Annual Report Analysis

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VOLTAS 2019-20 Annual Report Analysis
Mon, 14 Dec

VOLTAS 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.

VOLTAS Income Statement Analysis

  • Operating income during the year rose 7.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 12.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.0% in FY20 as against 8.6% in FY19.
  • Depreciation charges increased by 33.3% and finance costs decreased by 36.0% YoY, respectively.
  • Other income grew by 23.8% YoY.
  • Net profit for the year grew by 1.4% YoY.
  • Net profit margins during the year declined from 7.0% in FY19 to 6.6% in FY20.

VOLTAS Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 71,241 76,581 7.5%
Other income Rs m 1,863 2,306 23.8%
Total Revenues Rs m 73,103 78,887 7.9%
Gross profit Rs m 6,117 6,867 12.3%
Depreciation Rs m 240 320 33.3%
Interest Rs m 330 211 -36.0%
Profit before tax Rs m 7,410 8,642 16.6%
Tax Rs m 1,635 2,233 36.5%
Profit after tax Rs m 5,139 5,211 1.4%
Gross profit margin % 8.6 9.0
Effective tax rate % 22.1 25.8
Net profit margin % 7.0 6.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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VOLTAS Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 37 billion as compared to Rs 33 billion in FY19, thereby witnessing an increase of 13.6%.
  • Long-term debt stood at Rs 54 million as compared to Rs 0 million during FY19, a fall of 0.0%.
  • Current assets fell 1% and stood at Rs 56 billion, while fixed assets rose 17% and stood at Rs 3 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 82 billion as against Rs 75 billion during FY19, thereby witnessing a growth of 8%.

VOLTAS Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 41,100 42,802 4.1
 
Current Liabilities Rs m 32,853 37,318 13.6
Long-term Debt Rs m 0 54 0.0
Total Liabilities Rs m 75,220 81,561 8.4
 
Current assets Rs m 56,472 55,784 -1.2
Fixed Assets Rs m 2,775 3,249 17.1
Total Assets Rs m 75,220 81,561 8.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VOLTAS Cash Flow Statement Analysis

  • VOLTAS's cash flow from operating activities (CFO) during FY20 stood at Rs 5 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -417 million from the Rs 531 million net cash flows seen during FY19.

VOLTAS 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 -3,214 4,625 -
Cash Flow from Investing Activities Rs m 3,927 -2,105 -
Cash Flow from Financing Activities Rs m -183 -2,937 -
Net Cash Flow Rs m 531 -417 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for VOLTAS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.7, an improvement from the EPS of Rs 15.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 807.7, stands at 53.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 2.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 43.0 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 215.3 231.4
TTM Earnings per share Rs 15.5 15.7
Diluted earnings per share Rs 15.5 15.7
Price to Cash Flow x 45.3 43.0
TTM P/E ratio x 53.9 53.9
Price / Book Value ratio x 4.6 4.6
Market Cap Rs m 267,252 267,256
Dividends per share (Unadj.) Rs 4.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for VOLTAS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY20, from 1.7x 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 improved and stood at 42.0x during FY20, from 23.5x 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 12.2% during FY20, from 12.5% 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 improved and stood at 17.9% during FY20, from 17.3% 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 6.6% during FY20, from 7.3% 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 1.7 1.5
Debtors’ Days Days 92 87
Interest coverage x 23.5 42.0
Debt to equity ratio x 0.0 0.0
Return on assets % 7.3 6.6
Return on equity % 12.5 12.2
Return on capital employed % 17.3 17.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

VOLTAS Share Price Performance

Over the last one year, VOLTAS share price has moved up from Rs 679.5 to Rs 807.7, registering a gain of Rs 128.3 or around 18.9%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 28,290.3 (up 0.5%). Over the last one year it has moved up from 25,070.5 to 28,290.3, a gain of 3,220 points (up 12.8%).

Overall, the S&P BSE SENSEX is up 14.6% over the year.

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

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Related Views on News

VOLTAS Announces Quarterly Results (1QFY21); Net Profit Down 50.2% (Quarterly Result Update)

Sep 1, 2020 | Updated on Sep 1, 2020

For the quarter ended June 2020, VOLTAS has posted a net profit of Rs 934 m (down 50.2% YoY). Sales on the other hand came in at Rs 13 bn (down 52.1% YoY). Read on for a complete analysis of VOLTAS's quarterly results.

VOLTAS Announces Quarterly Results (4QFY20); Net Profit Up 11.1% (Quarterly Result Update)

Jun 1, 2020 | Updated on Jun 1, 2020

For the quarter ended March 2020, VOLTAS has posted a net profit of Rs 2 bn (up 11.1% YoY). Sales on the other hand came in at Rs 21 bn (up 1.3% YoY). Read on for a complete analysis of VOLTAS's quarterly results.

VOLTAS 2018-19 Annual Report Analysis (Annual Result Update)

Jul 18, 2019 | Updated on Jul 18, 2019

Here's an analysis of the annual report of VOLTAS for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of VOLTAS. Also includes updates on the valuation of VOLTAS.

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