AMBIKA COTTON 2017-18 Annual Report Analysis

Sat, 31 Mar

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 19.3% in FY18 as against 19.9% in FY17.
• Depreciation charges decreased by 1.6% and finance costs increased by 24.8% YoY, respectively.
• Other income grew by 47.4% YoY.
• Net profit for the year grew by 9.7% 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	47.4%
Total Revenues	Rs m	5,294	5,857	10.6%
Gross profit	Rs m	1,049	1,128	7.5%
Depreciation	Rs m	293	289	-1.6%
Interest	Rs m	44	55	24.8%
Profit before tax	Rs m	720	796	10.6%
Tax	Rs m	163	186	13.8%
Profit after tax	Rs m	557	611	9.7%
Gross profit margin	%	19.9	19.3
Effective tax rate	%	22.6	23.3
Net profit margin	%	10.5	10.4

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AMBIKA COTTON Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 1 billion as compared to Rs 854 million in FY17, thereby witnessing an increase of 38.7%.
• Current assets rose 38% 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	854	1,185	38.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,926	5,852	18.8
Current assets	Rs m	2,329	3,217	38.1
Fixed Assets	Rs m	2,597	2,635	1.5
Total Assets	Rs m	4,926	5,852	18.8

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 -317 million, an improvement of 11.9% 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 -52 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	-317	-
Cash Flow from Financing Activities	Rs m	-322	103	-
Net Cash Flow	Rs m	64	-52	-

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 97.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,282.5, stands at 12.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 9.8 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	97.2	106.6
Diluted earnings per share	Rs	97.3	106.7
Price to Cash Flow	x	8.9	9.8
TTM P/E ratio	x	13.5	12.0
Price / Book Value ratio	x	1.6	2.1
Market Cap	Rs m	6,043	8,794
Dividends per share (Unadj.)	Rs	0.0	35.0

Ratio Analysis for AMBIKA COTTON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.7x during FY18, from 2.7x 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 15.4x during FY18, from 17.3x 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 19.9% during FY18, from 20.4% 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 11.4% during FY18, from 12.2% 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	2.7	2.7
Debtors’ Days	Days	283	85
Interest coverage	x	17.3	15.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.2	11.4
Return on equity	%	14.9	14.2
Return on capital employed	%	20.4	19.9

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 down from Rs 1,316.7 to Rs 1,282.5, registering a loss of Rs 34.2 or around 2.6%.

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

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

Read: Latest Annual Report Analysis of AMBIKA COTTON