MOTHERSON SUMI 2018-19 Annual Report Analysis
Thu, 1 Aug

MOTHERSON SUMI 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.

MOTHERSON SUMI Income Statement Analysis

  • Operating income during the year rose 12.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 4.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.4% in FY19 as against 9.1% in FY18.
  • Depreciation charges increased by 30.7% and finance costs increased by 3.0% YoY, respectively.
  • Other income grew by 29.5% YoY.
  • Net profit for the year declined by 7.2% YoY.
  • Net profit margins during the year declined from 4.0% in FY18 to 3.3% in FY19.

MOTHERSON SUMI Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 562,933 635,229 12.8%
Other income Rs m 1,701 2,202 29.5%
Total Revenues Rs m 564,634 637,431 12.9%
Gross profit Rs m 51,226 53,484 4.4%
Depreciation Rs m 15,752 20,582 30.7%
Interest Rs m 4,108 4,232 3.0%
Profit before tax Rs m 33,067 30,872 -6.6%
Tax Rs m 10,072 11,022 9.4%
Profit after tax Rs m 22,599 20,981 -7.2%
Gross profit margin % 9.1 8.4
Effective tax rate % 30.5 35.7
Net profit margin % 4.0 3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MOTHERSON SUMI Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 189 billion as compared to Rs 153 billion in FY18, thereby witnessing an increase of 23.2%.
  • Long-term debt stood at Rs 81 billion as compared to Rs 76 billion during FY18, a growth of 7.0%.
  • Current assets rose 17% and stood at Rs 199 billion, while fixed assets rose 19% and stood at Rs 152 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 433 billion as against Rs 375 billion during FY18, thereby witnessing a growth of 16%.

MOTHERSON SUMI Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 98,841 109,627 10.9
 
Current Liabilities Rs m 153,342 188,906 23.2
Long-term Debt Rs m 75,701 80,995 7.0
Total Liabilities Rs m 374,977 433,302 15.6
 
Current assets Rs m 171,001 199,496 16.7
Fixed Assets Rs m 128,527 152,306 18.5
Total Assets Rs m 374,977 433,302 15.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MOTHERSON SUMI Cash Flow Statement Analysis

  • MOTHERSON SUMI's cash flow from operating activities (CFO) during FY19 stood at Rs 43 billion, an improvement of 32.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -33 billion, an improvement of 3.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion, an improvement of 90% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 8 billion from the Rs -22 billion net cash flows seen during FY18.

MOTHERSON SUMI 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 32,640 43,124 32.1%
Cash Flow from Investing Activities Rs m -31,941 -33,105 -
Cash Flow from Financing Activities Rs m -22,214 -2,246 -
Net Cash Flow Rs m -21,515 7,773 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for MOTHERSON SUMI

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.6, an decline from the EPS of Rs 10.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 105.0, stands at 16.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.0 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.2 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 267.4 201.2
TTM Earnings per share Rs 10.7 6.6
Diluted earnings per share Rs 7.2 6.6
Price to Cash Flow x 6.0 8.2
TTM P/E ratio x 11.0 16.5
Price / Book Value ratio x 8.5 7.0
Market Cap Rs m 221,055 331,510
Dividends per share (Unadj.) Rs 2.3 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for MOTHERSON SUMI

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY19, from 1.1x 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 deteriorated and stood at 8.3x during FY19, from 9.0x 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 19.1% during FY19, from 22.9% 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 declined and down at 19.0% during FY19, from 21.1% 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 declined and down at 5.8% during FY19, from 7.1% 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 1.1 1.1
Debtors’ Days Days 36 35
Interest coverage x 9.0 8.3
Debt to equity ratio x 0.8 0.7
Return on assets % 7.1 5.8
Return on equity % 22.9 19.1
Return on capital employed % 21.1 19.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

MOTHERSON SUMI Share Price Performance

Over the last one year, MOTHERSON SUMI share price has moved down from Rs 210.3 to Rs 105.0, registering a loss of Rs 105.3 or around 50.1%.

Overall, the S&P BSE SENSEX is down 1.7% over the year.

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