AMBIKA COTTON 2017-18 Annual Report Analysis

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AMBIKA COTTON 2017-18 Annual Report Analysis
Tue, 18 Dec

AMBIKA COTTON 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.

AMBIKA COTTON Income Statement Analysis

  • Operating income during the year rose 10.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 7.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.2% in FY18 as against 19.8% in FY17.
  • Depreciation charges decreased by 1.6% and finance costs increased by 28.4% YoY, respectively.
  • Other income grew by 48.2% YoY.
  • Net profit for the year grew by 9.6% YoY.
  • Net profit margins during the year declined from 10.5% in FY17 to 10.4% in FY18.

AMBIKA COTTON Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 5,286 5,845 10.6%
Other income Rs m 8 12 48.2%
Total Revenues Rs m 5,294 5,857 10.6%
Gross profit Rs m 1,044 1,122 7.5%
Depreciation Rs m 294 289 -1.6%
Interest Rs m 38 49 28.4%
Profit before tax Rs m 721 796 10.5%
Tax Rs m 163 186 13.6%
Profit after tax Rs m 557 611 9.6%
Gross profit margin % 19.8 19.2
Effective tax rate % 22.7 23.3
Net profit margin % 10.5 10.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



AMBIKA COTTON Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 1 billion as compared to Rs 689 million in FY17, thereby witnessing an increase of 53.0%.
  • Current assets rose 39% and stood at Rs 3 billion, while fixed assets rose 1% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 6 billion as against Rs 5 billion during FY17, thereby witnessing a growth of 19%.

AMBIKA COTTON Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 3,747 4,288 14.4
 
Current Liabilities Rs m 689 1,053 53.0
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 4,760 5,646 18.6
 
Current assets Rs m 2,163 3,010 39.1
Fixed Assets Rs m 2,575 2,593 0.7
Total Assets Rs m 4,760 5,646 18.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



AMBIKA COTTON Cash Flow Statement Analysis

  • AMBIKA COTTON's cash flow from operating activities (CFO) during FY18 stood at Rs 163 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -316 million, an improvement of 11.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 103 million, an improvement of 132% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -50 million from the Rs 64 million net cash flows seen during FY17.

AMBIKA COTTON 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 670 163 -75.7%
Cash Flow from Investing Activities Rs m -283 -316 -
Cash Flow from Financing Activities Rs m -322 103 -
Net Cash Flow Rs m 64 -50 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for AMBIKA COTTON

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 106.6, an improvement from the EPS of Rs 97.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,200.0, stands at 10.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.8 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 922.5 1,020.0
TTM Earnings per share Rs 97.3 106.6
Diluted earnings per share Rs 94.9 103.9
Price to Cash Flow x 8.1 7.8
TTM P/E ratio x 10.5 10.7
Price / Book Value ratio x 1.6 2.1
Market Cap Rs m 6,876 7,050
Dividends per share (Unadj.) Rs 0.0 35.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for AMBIKA COTTON

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.9x during FY18, from 3.1x 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 17.2x during FY18, from 19.8x 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 14.2% during FY18, from 14.9% 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 19.7% during FY18, from 20.3% 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 11.7% during FY18, from 12.5% 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 3.1 2.9
Debtors’ Days Days 28 8
Interest coverage x 19.8 17.2
Debt to equity ratio x 0.0 0.0
Return on assets % 12.5 11.7
Return on equity % 14.9 14.2
Return on capital employed % 20.3 19.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how AMBIKA COTTON has performed over the last 5 years, please visit here.

AMBIKA COTTON Share Price Performance

Over the last one year, AMBIKA COTTON share price has moved up from Rs 1,288.5 to Rs 1,200.0, registering a loss of Rs 88.6 or around 6.9%.

Overall, the S&P BSE SENSEX is up 7.4% over the year.

(To know more, check out historical annual results for AMBIKA COTTON and quarterly results for AMBIKA COTTON)

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Related Views on News

AMBIKA COTTON Announces Quarterly Results (1QFY20); Net Profit Down 17.8% (Quarterly Result Update)

Aug 19, 2019 | Updated on Aug 19, 2019

For the quarter ended June 2019, AMBIKA COTTON has posted a net profit of Rs 138 m (down 17.8% YoY). Sales on the other hand came in at Rs 2 bn (down 7.2% YoY). Read on for a complete analysis of AMBIKA COTTON's quarterly results.

AMBIKA COTTON Announces Quarterly Results (3QFY19); Net Profit Up 1.8% (Quarterly Result Update)

Feb 14, 2019 | Updated on Feb 14, 2019

For the quarter ended December 2018, AMBIKA COTTON has posted a net profit of Rs 161 m (up 1.8% YoY). Sales on the other hand came in at Rs 2 bn (up 10.6% YoY). Read on for a complete analysis of AMBIKA COTTON's quarterly results.

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