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ABAN OFFSHORE 2017-18 Annual Report Analysis
Sat, 31 Mar

ABAN OFFSHORE 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.

ABAN OFFSHORE Income Statement Analysis

  • Operating income during the year fell 16.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 164.6% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 40.0% in FY18 as against 51.6% in FY17.
  • Depreciation charges decreased by 5.2% and finance costs increased by 17.6% YoY, respectively.
  • Other income declined by 2.6% YoY.
  • Net profit for the year grew by 150.4% YoY.
  • Net profit margins during the year declined from 59.2% in FY17 to 177.7% in FY18.

ABAN OFFSHORE Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 17,579 14,669 -16.6%
Other income Rs m 149 145 -2.6%
Total Revenues Rs m 17,728 14,814 -16.4%
Gross profit Rs m 9,066 -5,860 -164.6%
Depreciation Rs m 7,012 6,647 -5.2%
Interest Rs m 10,905 12,821 17.6%
Profit before tax Rs m -8,702 -25,183 189.4%
Tax Rs m 1,708 881 -48.4%
Profit after tax Rs m -10,411 -26,064 150.4%
Gross profit margin % 51.6 -40.0
Effective tax rate % -19.6 -3.5
Net profit margin % -59.2 -177.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

ABAN OFFSHORE Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 165 billion as compared to Rs 38 billion in FY17, thereby witnessing an increase of 328.3%.
  • Long-term debt down at Rs 602 million as compared to Rs 118 billion during FY17, a fall of 99.5%.
  • Current assets rose 3% and stood at Rs 25 billion, while fixed assets fell 11% and stood at Rs 144 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 169 billion as against Rs 187 billion during FY17, thereby witnessing a fall of 10%.

ABAN OFFSHORE Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 26,355 187 -99.3
 
Current Liabilities Rs m 38,418 164,560 328.3
Long-term Debt Rs m 118,272 602 -99.5
Total Liabilities Rs m 187,277 169,377 -9.6
 
Current assets Rs m 24,258 24,943 2.8
Fixed Assets Rs m 163,019 144,433 -11.4
Total Assets Rs m 187,277 169,377 -9.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ABAN OFFSHORE Cash Flow Statement Analysis

  • ABAN OFFSHORE's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -678 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -3 billion, an improvement of 85% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 95 million from the Rs -427 million net cash flows seen during FY17.

ABAN OFFSHORE 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 18,023 3,959 -78.0%
Cash Flow from Investing Activities Rs m 2,570 -678 -
Cash Flow from Financing Activities Rs m -21,021 -3,188 -
Net Cash Flow Rs m -427 95 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ABAN OFFSHORE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -446.6, an decline from the EPS of Rs -178.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 159.3, stands at -0.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 49.8 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at -0.7 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 301.2 251.3
TTM Earnings per share Rs -178.4 -446.6
Diluted earnings per share Rs -178.4 -446.6
Price to Cash Flow x -3.9 -0.7
TTM P/E ratio x -4.3 -0.4
Price / Book Value ratio x 0.5 68.0
Market Cap Rs m 13,347 12,696
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ABAN OFFSHORE

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.2x during FY18, from 0.6x 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 deteriorated and stood at -1.0x during FY18, from 0.2x 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 declined and down at -13,952.3% during FY18, from -39.5% 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 declined and down at -1,566.5% during FY18, from 1.5% 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 -7.8% during FY18, from 0.3% 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 0.6 0.2
Debtors’ Days Days 385 466
Interest coverage x 0.2 -1.0
Debt to equity ratio x 4.5 3.2
Return on assets % 0.3 -7.8
Return on equity % -39.5 -13,952.3
Return on capital employed % 1.5 -1,566.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how ABAN OFFSHORE has performed over the last 5 years, please visit here.

ABAN OFFSHORE Share Price Performance

Over the last one year, ABAN OFFSHORE share price has moved down from Rs 225.1 to Rs 159.3, registering a loss of Rs 65.8 or around 29.2%.

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

(To know more, check out historical annual results for ABAN OFFSHORE and quarterly results for ABAN OFFSHORE)

Annual Report FAQs

What is the current share price of ABAN OFFSHORE?

ABAN OFFSHORE currently trades at Rs 49.9 per share. You can check out the latest share price performance of ABAN OFFSHORE here...

What was the revenue of ABAN OFFSHORE in FY18? How does it compare to earlier years?

The revenues of ABAN OFFSHORE stood at Rs 14,814 m in FY18, which was down -16.4% compared to Rs 17,728 m reported in FY17.

ABAN OFFSHORE's revenue has fallen from Rs 33,539 m in FY16 to Rs 14,814 m in FY18.

Over the past 3 years, the revenue of ABAN OFFSHORE has grown at a CAGR of -33.5%.

What was the net profit of ABAN OFFSHORE in FY18? How does it compare to earlier years?

The net loss of ABAN OFFSHORE stood at Rs -26,064 m in FY18, which was up 150.4% compared to Rs -10,411 m reported in FY17.

This compares to a net loss of Rs -2,430 m in FY16.

Over the past 3 years, ABAN OFFSHORE net profit has grown at a CAGR of 227.5%.

What does the cash flow statement of ABAN OFFSHORE reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ABAN OFFSHORE reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 3,959 m as compared to Rs 18,023 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -678 m as compared to Rs 2,570 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -3,188 m as compared to Rs -21,021 m in FY17.

Here's the cash flow statement of ABAN OFFSHORE for the past 3 years.

(Rs m)FY16FY17FY18
From Operations12,99418,0233,959
From Investments-8,4492,570-678
From Financial Activity-4,516-21,021-3,188
Net Cashflow28-42795

What does the Key Ratio analysis of ABAN OFFSHORE reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ABAN OFFSHORE reveals:

  • Operating profit margins witnessed a growth and stood at 40.0% in FY18 as against 51.6% in FY17.
  • Net profit margins declined from 59.2% in FY17 to 177.7% in FY18.
  • Debt to Equity ratio for FY18 stood at 3.2 as compared to 4.5 in FY17.

Here's the ratio/financial analysis of ABAN OFFSHORE for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)56.751.6-40.0
Net Profit Margin (%)-7.3-59.2-177.7
Debt to Equity Ratio (x)3.64.53.2

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