OMAX AUTOS 2018-19 Annual Report Analysis

Sun, 31 Mar

OMAX AUTOS 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.

OMAX AUTOS Income Statement Analysis

• Operating income during the year fell 13.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.0% in FY19 as against 3.6% in FY18.
• Depreciation charges decreased by 10.5% and finance costs decreased by 8.4% YoY, respectively.
• Other income grew by 12.8% YoY.
• Net profit for the year declined by 94.3% YoY.
• Net profit margins during the year declined from 0.7% in FY18 to 0.0% in FY19.

OMAX AUTOS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	11,492	9,916	-13.7%
Other income	Rs m	113	128	12.8%
Total Revenues	Rs m	11,606	10,044	-13.5%
Gross profit	Rs m	418	401	-4.2%
Depreciation	Rs m	219	196	-10.5%
Interest	Rs m	307	281	-8.4%
Profit before tax	Rs m	6	52	802.6%
Tax	Rs m	-71	47	-166.6%
Profit after tax	Rs m	77	4	-94.3%
Gross profit margin	%	3.6	4.0
Effective tax rate	%	-1,241.2	91.6
Net profit margin	%	0.7	0.0

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OMAX AUTOS Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 3 billion as compared to Rs 3 billion in FY18, thereby witnessing an decrease of -5.1%.
• Long-term debt stood at Rs 508 million as compared to Rs 428 million during FY18, a growth of 18.7%.
• Current assets rose 5% and stood at Rs 3 billion, while fixed assets fell 6% and stood at Rs 3 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 6 billion as against Rs 6 billion during FY18, thereby witnessing a fall of 0%.

OMAX AUTOS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	2,302	2,291	-0.5
Current Liabilities	Rs m	3,032	2,877	-5.1
Long-term Debt	Rs m	428	508	18.7
Total Liabilities	Rs m	5,994	5,991	0.0
Current assets	Rs m	3,109	3,273	5.3
Fixed Assets	Rs m	2,885	2,718	-5.8
Total Assets	Rs m	5,994	5,991	0.0

OMAX AUTOS Cash Flow Statement Analysis

• OMAX AUTOS's cash flow from operating activities (CFO) during FY19 stood at Rs -874 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 303 million, an improvement of 78.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 397 million, an improvement of 181% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -175 million from the Rs 362 million net cash flows seen during FY18.

OMAX AUTOS 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	684	-874	-
Cash Flow from Investing Activities	Rs m	170	303	78.1%
Cash Flow from Financing Activities	Rs m	-492	397	-
Net Cash Flow	Rs m	362	-175	-

Current Valuations for OMAX AUTOS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.2, an decline from the EPS of Rs 3.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 84.5, stands at 243.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 14.5 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	537.3	463.6
TTM Earnings per share	Rs	3.6	0.2
Diluted earnings per share	Rs	3.6	0.2
Price to Cash Flow	x	9.8	14.5
TTM P/E ratio	x	41.5	243.8
Price / Book Value ratio	x	1.3	1.3
Market Cap	Rs m	2,973	2,905
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for OMAX AUTOS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY19, from 1.0x 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 1.2x during FY19, from 1.0x 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 0.2% during FY19, from 3.3% 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 11.9% during FY19, from 11.4% 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 4.8% during FY19, from 6.4% 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	1.0	1.1
Debtors’ Days	Days	524	477
Interest coverage	x	1.0	1.2
Debt to equity ratio	x	0.2	0.2
Return on assets	%	6.4	4.8
Return on equity	%	3.3	0.2
Return on capital employed	%	11.4	11.9

To see how OMAX AUTOS has performed over the last 5 years, please visit here.

OMAX AUTOS Share Price Performance

Over the last one year, OMAX AUTOS share price has moved down from Rs 135.7 to Rs 84.5, registering a loss of Rs 51.2 or around 37.7%.

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

(To know more, check out historical annual results for OMAX AUTOS and quarterly results for OMAX AUTOS)