VENKYS (I) LIMITED 2018-19 Annual Report Analysis

Mon, 16 Sep

VENKYS (I) LIMITED 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.

VENKYS (I) LIMITED Income Statement Analysis

• Operating income during the year rose 13.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 20.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.1% in FY19 as against 14.4% in FY18.
• Depreciation charges increased by 4.3% and finance costs decreased by 36.7% YoY, respectively.
• Other income grew by 0.7% YoY.
• Net profit for the year declined by 12.8% YoY.
• Net profit margins during the year declined from 7.4% in FY18 to 5.7% in FY19.

VENKYS (I) LIMITED Income Statement 2018-19

VENKYS (I) LIMITED Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 6 billion as compared to Rs 6 billion in FY18, thereby witnessing an decrease of -0.4%.
• Long-term debt down at Rs 399 million as compared to Rs 739 million during FY18, a fall of 45.9%.
• Current assets rose 12% and stood at Rs 9 billion, while fixed assets rose 16% and stood at Rs 6 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 16 billion as against Rs 14 billion during FY18, thereby witnessing a growth of 9%.

VENKYS (I) LIMITED Balance Sheet as on March 2019

VENKYS (I) LIMITED Cash Flow Statement Analysis

• VENKYS (I) LIMITED's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -383 million, an improvement of 30.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -1 billion, an improvement of 51% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 2 million from the Rs -182 million net cash flows seen during FY18.

VENKYS (I) LIMITED Cash Flow Statement 2018-19

Current Valuations for VENKYS (I) LIMITED

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 123.6, an decline from the EPS of Rs 141.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,624.2, stands at 13.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 11.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

Ratio Analysis for VENKYS (I) LIMITED

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY19, from 1.3x 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 9.8x during FY19, from 7.8x 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 declined and down at 19.8% during FY19, from 27.7% 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 declined and down at 33.4% during FY19, from 48.7% 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 declined and down at 13.2% during FY19, from 17.4% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

To see how VENKYS (I) LIMITED has performed over the last 5 years, please visit here.

VENKYS (I) LIMITED Share Price Performance

Over the last one year, VENKYS (I) LIMITED share price has moved down from Rs 2,549.3 to Rs 1,624.2, registering a loss of Rs 925.1 or around 36.3%.

Overall, the S&P BSE SENSEX is down 2.5% over the year.

(To know more, check out historical annual results for VENKYS (I) LIMITED and quarterly results for VENKYS (I) LIMITED)