GODFREY PHILLIPS 2018-19 Annual Report Analysis

Mon, 16 Sep

GODFREY PHILLIPS 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.

GODFREY PHILLIPS Income Statement Analysis

• Operating income during the year rose 7.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 56.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.1% in FY19 as against 11.1% in FY18.
• Depreciation charges increased by 0.1% and finance costs decreased by 41.9% YoY, respectively.
• Other income grew by 45.0% YoY.
• Net profit for the year grew by 63.6% YoY.
• Net profit margins during the year grew from 6.7% in FY18 to 10.1% in FY19.

GODFREY PHILLIPS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	23,256	24,972	7.4%
Other income	Rs m	546	791	45.0%
Total Revenues	Rs m	23,802	25,764	8.2%
Gross profit	Rs m	2,583	4,030	56.0%
Depreciation	Rs m	984	986	0.1%
Interest	Rs m	17	10	-41.9%
Profit before tax	Rs m	2,128	3,826	79.8%
Tax	Rs m	740	1,228	65.9%
Profit after tax	Rs m	1,591	2,603	63.6%
Gross profit margin	%	11.1	16.1
Effective tax rate	%	34.8	32.1
Net profit margin	%	6.7	10.1

GODFREY PHILLIPS Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 7 billion as compared to Rs 6 billion in FY18, thereby witnessing an increase of 31.1%.
• Long-term debt stood at Rs 8 million as compared to Rs 7 million during FY18, a growth of 10.8%.
• Current assets rose 12% and stood at Rs 11 billion, while fixed assets rose 6% and stood at Rs 7 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 29 billion as against Rs 25 billion during FY18, thereby witnessing a growth of 16%.

GODFREY PHILLIPS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	17,934	20,387	13.7
Current Liabilities	Rs m	5,627	7,377	31.1
Long-term Debt	Rs m	7	8	10.8
Total Liabilities	Rs m	24,663	28,667	16.2
Current assets	Rs m	9,687	10,865	12.2
Fixed Assets	Rs m	6,681	7,087	6.1
Total Assets	Rs m	24,663	28,667	16.2

GODFREY PHILLIPS Cash Flow Statement Analysis

• GODFREY PHILLIPS's cash flow from operating activities (CFO) during FY19 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -434 million, an improvement of 56% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 86 million from the Rs 118 million net cash flows seen during FY18.

GODFREY PHILLIPS 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	5,158	3,619	-29.8%
Cash Flow from Investing Activities	Rs m	-4,049	-3,099	-
Cash Flow from Financing Activities	Rs m	-991	-434	-
Net Cash Flow	Rs m	118	86	-26.7%

Current Valuations for GODFREY PHILLIPS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 250.3, an improvement from the EPS of Rs 152.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,020.1, stands at 17.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 14.8 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	2,236.2	2,401.2
TTM Earnings per share	Rs	152.9	250.3
Diluted earnings per share	Rs	30.6	50.1
Price to Cash Flow	x	4.1	14.8
TTM P/E ratio	x	3.5	17.7
Price / Book Value ratio	x	0.6	0.5
Market Cap	Rs m	10,609	53,045
Dividends per share (Unadj.)	Rs	8.0	10.0

Ratio Analysis for GODFREY PHILLIPS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY19, from 1.7x 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 395.4x during FY19, from 128.4x 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 12.8% 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 18.8% during FY19, from 13.1% 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 9.1% during FY19, from 6.5% 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	1.7	1.5
Debtors’ Days	Days	13	10
Interest coverage	x	128.4	395.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.5	9.1
Return on equity	%	8.9	12.8
Return on capital employed	%	13.1	18.8

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

GODFREY PHILLIPS Share Price Performance

Over the last one year, GODFREY PHILLIPS share price has moved up from Rs 991.2 to Rs 1,020.1, registering a gain of Rs 28.9 or around 2.9%.

Overall, the S&P BSE SENSEX is down 2.4% over the year.

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