20 MICRONS 2017-18 Annual Report Analysis

Sat, 31 Mar

20 MICRONS has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

20 MICRONS Income Statement Analysis

• Operating income during the year rose 11.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.8% in FY18 as against 14.6% in FY17.
• Depreciation charges increased by 1.0% and finance costs decreased by 6.4% YoY, respectively.
• Other income grew by 33.6% YoY.
• Net profit for the year grew by 18.9% YoY.
• Net profit margins during the year grew from 4.2% in FY17 to 4.5% in FY18.

20 MICRONS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	3,785	4,228	11.7%
Other income	Rs m	18	24	33.6%
Total Revenues	Rs m	3,803	4,252	11.8%
Gross profit	Rs m	554	583	5.2%
Depreciation	Rs m	102	103	1.0%
Interest	Rs m	239	224	-6.4%
Profit before tax	Rs m	231	280	21.4%
Tax	Rs m	72	91	26.9%
Profit after tax	Rs m	159	189	18.9%
Gross profit margin	%	14.6	13.8
Effective tax rate	%	31.1	32.5
Net profit margin	%	4.2	4.5

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20 MICRONS Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 2 billion as compared to Rs 2 billion in FY17, thereby witnessing an increase of 2.5%.
• Long-term debt down at Rs 581 million as compared to Rs 641 million during FY17, a fall of 9.3%.
• Current assets rose 8% and stood at Rs 2 billion, while fixed assets rose 3% and stood at Rs 2 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 4 billion as against Rs 4 billion during FY17, thereby witnessing a growth of 5%.

20 MICRONS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	1,248	1,435	15.0
Current Liabilities	Rs m	1,671	1,712	2.5
Long-term Debt	Rs m	641	581	-9.3
Total Liabilities	Rs m	3,781	3,976	5.2
Current assets	Rs m	1,734	1,875	8.1
Fixed Assets	Rs m	2,047	2,101	2.6
Total Assets	Rs m	3,781	3,976	5.2

20 MICRONS Cash Flow Statement Analysis

• 20 MICRONS's cash flow from operating activities (CFO) during FY18 stood at Rs 606 million, an improvement of 36.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -183 million, an improvement of 112.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -436 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -13 million from the Rs 22 million net cash flows seen during FY17.

20 MICRONS Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	445	606	36.2%
Cash Flow from Investing Activities	Rs m	-86	-183	-
Cash Flow from Financing Activities	Rs m	-336	-436	-
Net Cash Flow	Rs m	22	-13	-

Current Valuations for 20 MICRONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.4, an improvement from the EPS of Rs 4.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 48.9, stands at 13.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 6.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	107.3	119.8
TTM Earnings per share	Rs	4.5	5.4
Diluted earnings per share	Rs	4.5	5.4
Price to Cash Flow	x	4.7	6.1
TTM P/E ratio	x	9.7	13.6
Price / Book Value ratio	x	1.1	1.2
Market Cap	Rs m	1,314	1,786
Dividends per share (Unadj.)	Rs	0.0	0.8

Ratio Analysis for 20 MICRONS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 1.0x during FY17. 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 2.3x during FY18, from 2.0x during FY17. 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 13.2% during FY18, from 12.8% during FY18. 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 25.0% during FY18, from 24.9% during FY17. 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 10.4% during FY18, from 10.5% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.0	1.1
Debtors’ Days	Days	577	574
Interest coverage	x	2.0	2.3
Debt to equity ratio	x	0.5	0.4
Return on assets	%	10.5	10.4
Return on equity	%	12.8	13.2
Return on capital employed	%	24.9	25.0

To see how 20 MICRONS has performed over the last 5 years, please visit here.

20 MICRONS Share Price Performance

Over the last one year, 20 MICRONS share price has moved up from Rs 35.1 to Rs 48.9, registering a gain of Rs 13.8 or around 39.2%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for 20 MICRONS and quarterly results for 20 MICRONS)

Read: Latest Annual Report Analysis of 20 MICRONS