DSIJ.in JULY 22 - AUG 4, 2019 I DALAL STREET INVESTMENT JOURNAL (^41)
policies. In the coming year, the government wishes to focus on
doubling on farmers' incomes and practising ‘zero-budget
farming’ nationwide. The Agriculture Export Policy, 2018, was
approved and implemented by the Government of India in
December 2018. The policy aims to increase India’s agricultural
exports to US$ 60 billion by 2022 and US$ 100 billion in the
next few years with a stable trade policy regime. Apart from
this, a few other policies to support the Indian farmers are
Pradhan Mantri Annadata Aay Sanrakshan Abhiyan, Pradhan
Mantri Fasal Bima Yojana, Pradhan Mantri Sinchayee Yojana,
etc. To promote business, the agriculture ministry aims to
improve infrastructural facilities, including better road and
water way connectivity, warehousing and storage facilities,
digital support and freight corridors.
Agriculture in India has achieved grain self-sufficiency, but the
production is resource-intensive, cereal-centric and regionally
biased. There are few risks which loom over the agricultural
industry in India. Desertification and land degradation pose a
major threat to agriculture in the country. The social aspects
around agriculture have also been witnessing changing trends
with increasing female participation. The management of
agricultural practices on multiple fronts is an area in which the
industry must improve on. Improvement strategies for
agriculture must include increasing incomes for farming
households, diversifying of production of crops, empowering of
women, strengthening of agricultural diversity and productivity
and also designing careful price and subsidy policies that will
encourage agricultural production and consumption of
nutrient rich crops.
To analyse the sector we have chosen the top 22 companies
according to market cap. The total net sales for the sector in
FY19 was 78716.74 crore which is an increase by 0.9 per cent compared to the net sales in FY18 which was77,976.47 crore.
In FY19, the total operating profit also increased by 37.98 per
cent to 7839.13 crore from5681.14 crore in FY18. The total
net income of the 22 companies rose by 44.92 per cent to
3531.96 crore for FY19 from 2437.15 crore for FY18. Comparing the companies having highest YoY growth in net sales, Rossell India for FY19 reported net sales of248.68 crore
with YoY growth of 25.27 per cent and posted an operating
profit of 20.70 crore for the same fiscal, with YoY growth of 56.58 per cent. Gujarat Ambuja Exports, which is a solvent extraction company, had 19.10 per cent YoY growth in net sales at4021.44 crore for FY19. The company’s operating profit for
FY19 was 372.38 crore, which is YoY growth of 17.37 per cent and the net income was 198.15 crore. Among rubber products companies, Pix Transmissions reported the highest net sales of 290.17 crore for FY19, with a YoY growth of 15.66. Tata Coffee
for FY19 posted net sales of 1803.98 crore with a YoY growth of 15.10 per cent. The company reported an operating profit of 243.19 crore and net income of 106.89 crore for FY19. Bajaj Hindustan Sugar, a sugar manufacturing company, posted net sales of6806.39 crore for FY19 with a net sales YoY growth of
14.53 per cent. The company’s operating profit rose by 8.85 per
cent YoY to 296.18 crore in FY19 from272.11 crore in FY18.
Tata Global Bverages, which has the highest market cap of
16,829.07 crore among the 22 companies, reported net sales of 7251.50 crore for FY19 with a YoY growth of 6.40 per cent and
net income of 473.83 core for the same fiscal. A 3.5 per cent increase in demand of agri-products is estimated by the end of year 2020, thus aiming for more than 50 per cent increase in agricultural production and agri-business. 6.47 7.85 6.17 6.40 -6.32 -16.47 -17.63 6.62 8.56 7.44 63.11 63.11 63.11 39.76 60.45 55.37 10.73 16.98 14.75 -34.23 23.36 30.70 45.53 13.95 13.95 13.95 11.14 10.12 9.18 -4.97 2.76 4.56 10.08 21.65 23.65 26.22 26.61 26.61 26.61 10.14 25.23 4.09 -2.61 52.57 157.20 -59.81 13.93 42.42 8.51 22.84 22.84 23.50 8.67 14.45 29.61 7.31 17.26 -15.47 -40.00 14.39 18.12 27.58 17.70 17.70 17.59 31.96 11.27 24.31 -1.22 -4.59 2.84 183.56 20.86 7.96 19.93 12.63 13.22 13.81 15.69 13.83 7.26 19.10 17.37 10.16 13.45 19.18 17.88 11.50 22.93 22.93 22.93 -11.49 -12.19 -19.48 -28.06 NA NA NA 0.00 0.00 0.00 191.70 191.70 94.50 4.62 9.81 -0.28 -7.62 11.96 94.26 -52.90 11.33 32.38 -4.76 25.79 25.79 25.79 3.68 5.71 8.09 15.10 -7.96 -42.84 -35.50 9.28 17.16 21.08 18.68 18.68 18.68 22.85 34.43 4.30 -13.01 30.55 65.89 -33.63 15.90 35.25 6.72 66.39 66.39 66.39 -4.54 -0.84 -1.96 14.53 8.85 NA NA -15.60 -2.63 -8.39 113.36 113.36 113.36 15.11 23.01 7.21 -11.27 1.22 43.21 -34.34 8.84 21.04 12.10 16.19 16.19 16.19 44.99 57.64 95.86 7.21 7.08 4.38 -21.94 7.60 7.77 24.67 3.33 3.33 3.33 33.72 69.89 19.59 -2.16 16.23 27.61 -51.75 13.91 37.16 14.26 17.40 17.40 17.40 20.96 15.76 10.97 15.66 5.42 32.99 32.99 14.35 12.04 9.25 13.63 13.63 13.63 4.09 6.01 8.33 0.60 -28.31 -29.72 -31.85 5.88 8.70 12.44 5.25 5.25 5.25 2.49 91.78 0.20 -13.95 170.97 316.13 -97.28 2.91 0.00 0.00 39.12 39.12 39.12 0.69 0.18 0.85 10.49 115.26 NA 273.61 3.27 0.87 3.41 26.38 26.38 26.38 1.17 1.52 0.71 -10.22 10.09 -29.62 -22.71 7.23 10.19 5.47 26.38 26.38 26.38 0.07 -0.36 2.61 25.27 56.58 183.33 NA 0.14 -0.77 5.78 7.34 7.34 7.34 22.50 7.11 3.40 -16.33 NA -82.29 216.58 12.73 4.01 2.24 43.69 46.19 41.19 EPS () YoY Growth FY19 (%) RoNW (%) Equity (` in Cr.)
FY19 FY18 FY17 Sales Operating Profit PAT EPS FY19 FY18 FY17 FY19 FY18 FY17
martin jones
(Martin Jones)
#1