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SKF INDIA 2018-19 Annual Report Analysis
Mon, 16 Dec

SKF INDIA 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.

SKF INDIA Income Statement Analysis

  • Operating income during the year rose 10.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 11.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.0% in FY19 as against 15.8% in FY18.
  • Depreciation charges increased by 1.4% and finance costs increased by 54.1% YoY, respectively.
  • Other income grew by 29.5% YoY.
  • Net profit for the year grew by 13.5% YoY.
  • Net profit margins during the year grew from 10.5% in FY18 to 10.7% in FY19.

SKF INDIA Income Statement 2018-19

No. of Mths Year Ending12 Mar-18*12 Mar-19*% Change
Net SalesRs m27,50430,34510.3%
Other incomeRs m71492429.5%
Total RevenuesRs m28,21831,26910.8%
Gross profitRs m4,3484,85911.7%
DepreciationRs m4574641.4%
InterestRs m507754.1%
Profit before taxRs m4,5555,24215.1%
TaxRs m1,5961,88418.1%
Profit after taxRs m2,9593,35813.5%
Gross profit margin%15.816.0
Effective tax rate%35.035.9
Net profit margin%10.510.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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SKF INDIA 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 -1.9%.
  • Current assets fell 10% and stood at Rs 17 billion, while fixed assets rose 5% and stood at Rs 3 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 23 billion as against Rs 24 billion during FY18, thereby witnessing a fall of 6%.

SKF INDIA Balance Sheet as on March 2019

No. of Mths Year Ending12 Mar-18*12 Mar-19*% Change
NetworthRs m18,37316,969-7.6
 
Current LiabilitiesRs m5,7845,674-1.9
Long-term DebtRs m000.0
Total LiabilitiesRs m24,43822,967-6.0
 
Current assetsRs m18,93117,113-9.6
Fixed AssetsRs m 3,3003,4634.9
Total AssetsRs m24,43822,967-6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SKF INDIA Cash Flow Statement Analysis

  • SKF INDIA'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 3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -5 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 109 million from the Rs -1 billion net cash flows seen during FY18.

SKF INDIA Cash Flow Statement 2018-19

ParticularsNo. of months1212% Change
Year EndingMar-18Mar-19
Cash Flow from Operating ActivitiesRs m3,6721,810-50.7%
Cash Flow from Investing ActivitiesRs m-2,6493,064-
Cash Flow from Financing ActivitiesRs m-2,253-4,765-
Net Cash FlowRs m-1,230109-
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SKF INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 67.9, an improvement from the EPS of Rs 57.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,128.4, stands at 33.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 3.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 29.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-18*12 Mar-19*
Sales per share (Unadj.)Rs536.1613.8
TTM Earnings per shareRs57.767.9
Diluted earnings per shareRs56.163.7
Price to Cash Flow x32.029.4
TTM P/E ratiox32.833.7
Price / Book Value ratiox4.95.3
Market CapRs m109,187112,231
Dividends per share (Unadj.)Rs12.012.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SKF INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.0x during FY19, from 3.3x 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 deteriorated and stood at 69.4x during FY19, from 92.6x 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 19.8% during FY19, from 16.1% 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 31.3% during FY19, from 25.1% 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 15.0% during FY19, from 12.3% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-18*12 Mar-19*
Current ratiox3.33.0
Debtors’ DaysDays6563
Interest coveragex92.669.4
Debt to equity ratiox0.00.0
Return on assets%12.315.0
Return on equity%16.119.8
Return on capital employed%25.131.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

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