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TRF LTD 2018-19 Annual Report Analysis
Mon, 23 Sep

TRF LTD 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.

TRF LTD Income Statement Analysis

  • Operating income during the year fell 20.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 47.8% YoY during the fiscal. Operating profit margins witnessed a growth and down at 21.4% in FY19 as against 32.6% in FY18.
  • Depreciation charges decreased by 7.4% and finance costs increased by 29.5% YoY, respectively.
  • Other income grew by 138.7% YoY.
  • Net profit for the year declined by 37.6% YoY.
  • Net profit margins during the year grew from 37.6% in FY18 to 28.9% in FY19.

TRF LTD Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 4,393 3,492 -20.5%
Other income Rs m 49 117 138.7%
Total Revenues Rs m 4,442 3,609 -18.8%
Gross profit Rs m -1,434 -749 -47.8%
Depreciation Rs m 50 46 -7.4%
Interest Rs m 490 634 29.5%
Profit before tax Rs m -1,924 -1,312 -31.8%
Tax Rs m -180 14 -107.5%
Profit after tax Rs m -1,670 -1,042 -37.6%
Gross profit margin % -32.6 -21.4
Effective tax rate % 9.4 -1.0
Net profit margin % -37.6 -28.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TRF LTD Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 6 billion as compared to Rs 12 billion in FY18, thereby witnessing an decrease of -48.4%.
  • Long-term debt down at Rs 248 million as compared to Rs 341 million during FY18, a fall of 27.3%.
  • Current assets fell 43% and stood at Rs 5 billion, while fixed assets fell 41% and stood at Rs 1 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 7 billion as against Rs 11 billion during FY18, thereby witnessing a fall of 38%.

TRF LTD Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m -2,008 -6 -99.7
 
Current Liabilities Rs m 12,422 6,412 -48.4
Long-term Debt Rs m 341 248 -27.3
Total Liabilities Rs m 10,909 6,806 -37.6
 
Current assets Rs m 8,421 4,796 -43.0
Fixed Assets Rs m 1,945 1,140 -41.4
Total Assets Rs m 10,909 6,806 -37.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TRF LTD Cash Flow Statement Analysis

  • TRF LTD's cash flow from operating activities (CFO) during FY19 stood at Rs -1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 1 billion, an improvement of 484.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -109 million, an improvement of 84% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 162 million from the Rs 104 million net cash flows seen during FY18.

TRF LTD 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 552 -1,070 -
Cash Flow from Investing Activities Rs m 230 1,343 484.1%
Cash Flow from Financing Activities Rs m -700 -109 -
Net Cash Flow Rs m 104 162 55.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for TRF LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -94.7, an improvement from the EPS of Rs -151.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 106.2, stands at -2.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -343.6 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at -1.0 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 399.4 317.5
TTM Earnings per share Rs -151.8 -94.7
Diluted earnings per share Rs -151.8 -94.7
Price to Cash Flow x -0.7 -1.0
TTM P/E ratio x -2.7 -2.7
Price / Book Value ratio x -1.4 -343.6
Market Cap Rs m 1,168 1,168
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for TRF LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.7x during FY19, from 0.7x 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 -1.1x during FY19, from -2.9x 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 17,655.9% during FY19, from 83.1% 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 declined and down at -163.3% during FY19, from 81.6% 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 -6.0% during FY19, from -10.8% 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 0.7 0.7
Debtors’ Days Days 316 313
Interest coverage x -2.9 -1.1
Debt to equity ratio x -0.2 -41.9
Return on assets % -10.8 -6.0
Return on equity % 83.1 17,655.9
Return on capital employed % 81.6 -163.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how TRF LTD has performed over the last 5 years, please visit here.

TRF LTD Share Price Performance

Over the last one year, TRF LTD share price has moved down from Rs 185.6 to Rs 106.2, registering a loss of Rs 79.4 or around 42.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 19,035.1 (up 5.3%). Over the last one year it has moved up from 18,058.2 to 19,035.1, a gain of 977 points (up 5.4%).

Overall, the S&P BSE SENSEX is up 5.3% over the year.

(To know more, check out historical annual results for TRF LTD and quarterly results for TRF LTD)