MAHINDRA LIFESPACE 2018-19 Annual Report Analysis

Sun, 31 Mar

MAHINDRA LIFESPACE 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.

MAHINDRA LIFESPACE Income Statement Analysis

• Operating income during the year rose 4.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 55.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.4% in FY19 as against 10.1% in FY18.
• Depreciation charges decreased by 11.4% and finance costs decreased by 69.7% YoY, respectively.
• Other income declined by 21.7% YoY.
• Net profit for the year declined by 21.5% YoY.
• Net profit margins during the year declined from 10.4% in FY18 to 7.8% in FY19.

MAHINDRA LIFESPACE Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	5,662	5,928	4.7%
Other income	Rs m	779	610	-21.7%
Total Revenues	Rs m	6,441	6,539	1.5%
Gross profit	Rs m	574	258	-55.0%
Depreciation	Rs m	43	38	-11.4%
Interest	Rs m	413	125	-69.7%
Profit before tax	Rs m	898	706	-21.4%
Tax	Rs m	312	246	-21.1%
Profit after tax	Rs m	586	460	-21.5%
Gross profit margin	%	10.1	4.4
Effective tax rate	%	34.7	34.8
Net profit margin	%	10.4	7.8

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MAHINDRA LIFESPACE Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 10 billion as compared to Rs 8 billion in FY18, thereby witnessing an increase of 22.4%.
• Long-term debt down at Rs 326 million as compared to Rs 576 million during FY18, a fall of 43.4%.
• Current assets rose 2% and stood at Rs 21 billion, while fixed assets fell 4% and stood at Rs 8 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 30 billion as against Rs 30 billion during FY18, thereby witnessing a fall of 0%.

MAHINDRA LIFESPACE Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	20,536	19,252	-6.3
Current Liabilities	Rs m	7,891	9,661	22.4
Long-term Debt	Rs m	576	326	-43.4
Total Liabilities	Rs m	29,980	29,936	-0.1
Current assets	Rs m	21,133	21,478	1.6
Fixed Assets	Rs m	8,847	8,458	-4.4
Total Assets	Rs m	29,980	29,936	-0.1

MAHINDRA LIFESPACE Cash Flow Statement Analysis

• MAHINDRA LIFESPACE '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 -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 848 million from the Rs -253 million net cash flows seen during FY18.

MAHINDRA LIFESPACE 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	1,944	1,675	-13.8%
Cash Flow from Investing Activities	Rs m	-1,797	2,877	-
Cash Flow from Financing Activities	Rs m	-400	-3,704	-
Net Cash Flow	Rs m	-253	848	-

Current Valuations for MAHINDRA LIFESPACE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.0, an decline from the EPS of Rs 11.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 359.4, stands at 120.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 52.6 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	110.3	115.4
TTM Earnings per share	Rs	11.4	9.0
Diluted earnings per share	Rs	3.8	3.0
Price to Cash Flow	x	108.7	52.6
TTM P/E ratio	x	116.6	120.6
Price / Book Value ratio	x	1.2	1.4
Market Cap	Rs m	24,260	26,211
Dividends per share (Unadj.)	Rs	6.0	6.0

Ratio Analysis for MAHINDRA LIFESPACE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY19, from 2.7x 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 6.7x during FY19, from 3.2x 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 2.4% during FY19, from 2.9% 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 4.2% during FY19, from 6.2% 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 2.0% during FY19, from 3.3% 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	2.7	2.2
Debtors’ Days	Days	936	845
Interest coverage	x	3.2	6.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.3	2.0
Return on equity	%	2.9	2.4
Return on capital employed	%	6.2	4.2

To see how MAHINDRA LIFESPACE has performed over the last 5 years, please visit here.

MAHINDRA LIFESPACE Share Price Performance

Over the last one year, MAHINDRA LIFESPACE share price has moved down from Rs 442.4 to Rs 359.4, registering a loss of Rs 83.0 or around 18.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,077.1 (up 0.6%). Over the last one year it has moved down from 2,229.9 to 2,077.1, a loss of 153 points (down 6.9%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for MAHINDRA LIFESPACE and quarterly results for MAHINDRA LIFESPACE )

Read: Latest Annual Report Analysis of MAHINDRA LIFESPACE