ALLIED DIGITAL 2017-18 Annual Report Analysis

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ALLIED DIGITAL 2017-18 Annual Report Analysis
Tue, 19 Mar

ALLIED DIGITAL 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.

ALLIED DIGITAL Income Statement Analysis

  • Operating income during the year rose 4.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 15.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.8% in FY18 as against 18.9% in FY17.
  • Depreciation charges increased by 8.1% and finance costs decreased by 65.3% YoY, respectively.
  • Other income grew by 108.2% YoY.
  • Net profit for the year declined by 2948.6% YoY.
  • Net profit margins during the year grew from 0.2% in FY17 to 4.4% in FY18.

ALLIED DIGITAL Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 2,153 2,249 4.5%
Other income Rs m 19 40 108.2%
Total Revenues Rs m 2,172 2,289 5.4%
Gross profit Rs m 407 469 15.1%
Depreciation Rs m 214 232 8.1%
Interest Rs m 158 55 -65.3%
Profit before tax Rs m 55 223 308.4%
Tax Rs m 58 90 57.0%
Profit after tax Rs m -4 100 -2,948.6%
Gross profit margin % 18.9 20.8
Effective tax rate % 105.5 40.6
Net profit margin % -0.2 4.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ALLIED DIGITAL Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 2 billion as compared to Rs 3 billion in FY17, thereby witnessing an decrease of -49.7%.
  • Long-term debt stood at Rs 45 million as compared to Rs 26 million during FY17, a growth of 74.8%.
  • Current assets fell 33% and stood at Rs 3 billion, while fixed assets fell 8% and stood at Rs 2 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 6 billion as against Rs 8 billion during FY17, thereby witnessing a fall of 21%.

ALLIED DIGITAL Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 4,420 4,238 -4.1
 
Current Liabilities Rs m 3,169 1,593 -49.7
Long-term Debt Rs m 26 45 74.8
Total Liabilities Rs m 7,859 6,195 -21.2
 
Current assets Rs m 3,952 2,657 -32.8
Fixed Assets Rs m 2,138 1,964 -8.1
Total Assets Rs m 7,859 6,195 -21.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ALLIED DIGITAL Cash Flow Statement Analysis

  • ALLIED DIGITAL's cash flow from operating activities (CFO) during FY18 stood at Rs 323 million, an improvement of 22.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 43 million, an improvement of 85.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -238 million, an improvement of 24% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 129 million from the Rs -26 million net cash flows seen during FY17.

ALLIED DIGITAL 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 265 323 22.0%
Cash Flow from Investing Activities Rs m 23 43 85.8%
Cash Flow from Financing Activities Rs m -315 -238 -
Net Cash Flow Rs m -26 129 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ALLIED DIGITAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.0, an improvement from the EPS of Rs -0.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 15.3, stands at 5.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 2.1 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 42.9 44.8
TTM Earnings per share Rs -0.1 2.0
Diluted earnings per share Rs -0.1 2.1
Price to Cash Flow x 3.6 2.1
TTM P/E ratio x 5.8 5.4
Price / Book Value ratio x 0.4 0.3
Market Cap Rs m 768 711
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ALLIED DIGITAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.7x during FY18, from 1.2x 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 5.1x during FY18, from 1.3x 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 improved and stood at 2.4% during FY18, from -0.1% 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 5.7% during FY18, from 4.8% 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 improved and stood at 2.5% during FY18, from 2.0% 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 1.2 1.7
Debtors’ Days Days 513 244
Interest coverage x 1.3 5.1
Debt to equity ratio x 0.0 0.0
Return on assets % 2.0 2.5
Return on equity % -0.1 2.4
Return on capital employed % 4.8 5.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how ALLIED DIGITAL has performed over the last 5 years, please visit here.

ALLIED DIGITAL Share Price Performance

Over the last one year, ALLIED DIGITAL share price has moved up from Rs 21.0 to Rs 15.3, registering a loss of Rs 5.7 or around 27.2%.

Meanwhile, the S&P BSE IT Index is trading at Rs 14,964.4 (down 0.1%). Over the last one year it has moved up from 12,074.2 to 14,964.4, a gain of 2,890 points (up 23.9%).

Overall, the S&P BSE SENSEX is up 15.8% over the year.

(To know more, check out historical annual results for ALLIED DIGITAL and quarterly results for ALLIED DIGITAL)

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