KALPATARU POWER 2018-19 Annual Report Analysis

Thu, 19 Sep

KALPATARU POWER 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.

KALPATARU POWER Income Statement Analysis

• Operating income during the year rose 24.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.4% in FY19 as against 11.7% in FY18.
• Depreciation charges increased by 10.1% and finance costs increased by 6.2% YoY, respectively.
• Other income grew by 74.4% YoY.
• Net profit for the year grew by 75.0% YoY.
• Net profit margins during the year grew from 3.2% in FY18 to 4.5% in FY19.

KALPATARU POWER Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	87,044	108,405	24.5%
Other income	Rs m	253	441	74.4%
Total Revenues	Rs m	87,297	108,846	24.7%
Gross profit	Rs m	10,217	13,472	31.9%
Depreciation	Rs m	1,915	2,109	10.1%
Interest	Rs m	3,777	4,010	6.2%
Profit before tax	Rs m	4,778	7,794	63.1%
Tax	Rs m	1,827	2,742	50.1%
Profit after tax	Rs m	2,783	4,871	75.0%
Gross profit margin	%	11.7	12.4
Effective tax rate	%	38.2	35.2
Net profit margin	%	3.2	4.5

KALPATARU POWER Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 67 billion as compared to Rs 60 billion in FY18, thereby witnessing an increase of 11.2%.
• Long-term debt down at Rs 19 billion as compared to Rs 24 billion during FY18, a fall of 19.2%.
• Current assets rose 16% and stood at Rs 92 billion, while fixed assets fell 17% and stood at Rs 32 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 141 billion as against Rs 124 billion during FY18, thereby witnessing a growth of 14%.

KALPATARU POWER Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	26,734	31,195	16.7
Current Liabilities	Rs m	60,184	66,934	11.2
Long-term Debt	Rs m	23,740	19,182	-19.2
Total Liabilities	Rs m	124,019	141,480	14.1
Current assets	Rs m	79,261	92,023	16.1
Fixed Assets	Rs m	37,856	31,565	-16.6
Total Assets	Rs m	124,019	141,480	14.1

KALPATARU POWER Cash Flow Statement Analysis

• KALPATARU POWER's cash flow from operating activities (CFO) during FY19 stood at Rs 10 billion, an improvement of 59.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -8 billion, an improvement of 19.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -189 million from the Rs 166 million net cash flows seen during FY18.

KALPATARU POWER 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	6,496	10,353	59.4%
Cash Flow from Investing Activities	Rs m	-7,000	-8,356	-
Cash Flow from Financing Activities	Rs m	658	-2,189	-
Net Cash Flow	Rs m	166	-189	-

Current Valuations for KALPATARU POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.7, an improvement from the EPS of Rs 18.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 443.6, stands at 16.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 9.5 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	567.2	706.4
TTM Earnings per share	Rs	18.1	31.7
Diluted earnings per share	Rs	18.1	31.7
Price to Cash Flow	x	14.0	9.5
TTM P/E ratio	x	16.5	16.5
Price / Book Value ratio	x	2.4	1.9
Market Cap	Rs m	68,067	68,067
Dividends per share (Unadj.)	Rs	2.5	3.0

Ratio Analysis for KALPATARU POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x 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 2.9x during FY19, from 2.3x 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 15.6% during FY19, from 10.4% 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 23.1% during FY19, from 16.6% 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 6.3% during FY19, from 5.3% 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	1.3	1.4
Debtors’ Days	Days	166	142
Interest coverage	x	2.3	2.9
Debt to equity ratio	x	0.9	0.6
Return on assets	%	5.3	6.3
Return on equity	%	10.4	15.6
Return on capital employed	%	16.6	23.1

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

KALPATARU POWER Share Price Performance

Over the last one year, KALPATARU POWER share price has moved up from Rs 330.1 to Rs 443.6, registering a gain of Rs 113.5 or around 34.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 16,786.8 (down 1.0%). Over the last one year it has moved down from 18,168.6 to 16,786.8, a loss of 1,382 points (down 7.6%).

Overall, the S&P BSE SENSEX is down 2.7% over the year.

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