AEGIS LOGISTICS 2017-18 Annual Report Analysis

Wed, 6 Mar

AEGIS LOGISTICS 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.

AEGIS LOGISTICS Income Statement Analysis

• Operating income during the year rose 21.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.9% in FY18 as against 5.5% in FY17.
• Depreciation charges increased by 44.1% and finance costs decreased by 6.8% YoY, respectively.
• Other income grew by 46.0% YoY.
• Net profit for the year grew by 60.8% YoY.
• Net profit margins during the year grew from 3.4% in FY17 to 4.5% in FY18.

AEGIS LOGISTICS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	39,303	47,910	21.9%
Other income	Rs m	57	84	46.0%
Total Revenues	Rs m	39,360	47,993	21.9%
Gross profit	Rs m	2,173	2,820	29.8%
Depreciation	Rs m	238	343	44.1%
Interest	Rs m	163	152	-6.8%
Profit before tax	Rs m	1,829	2,408	31.7%
Tax	Rs m	362	110	-69.6%
Profit after tax	Rs m	1,330	2,138	60.8%
Gross profit margin	%	5.5	5.9
Effective tax rate	%	19.8	4.6
Net profit margin	%	3.4	4.5

AEGIS LOGISTICS Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 8 billion as compared to Rs 11 billion in FY17, thereby witnessing an decrease of -20.4%.
• Long-term debt down at Rs 620 million as compared to Rs 774 million during FY17, a fall of 19.9%.
• Current assets fell 26% and stood at Rs 6 billion, while fixed assets rose 80% and stood at Rs 14 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 22 billion as against Rs 20 billion during FY17, thereby witnessing a growth of 9%.

AEGIS LOGISTICS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	8,372	12,073	44.2
Current Liabilities	Rs m	10,669	8,491	-20.4
Long-term Debt	Rs m	774	620	-19.9
Total Liabilities	Rs m	20,355	22,139	8.8
Current assets	Rs m	8,434	6,270	-25.7
Fixed Assets	Rs m	7,825	14,054	79.6
Total Assets	Rs m	20,355	22,139	8.8

AEGIS LOGISTICS Cash Flow Statement Analysis

• AEGIS LOGISTICS's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 8.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -3 billion, an improvement of 34.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 2 billion, an improvement of 294% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 795 million from the Rs 36 million net cash flows seen during FY17.

AEGIS LOGISTICS 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	1,770	1,915	8.2%
Cash Flow from Investing Activities	Rs m	-2,201	-2,962	-
Cash Flow from Financing Activities	Rs m	467	1,842	294.3%
Net Cash Flow	Rs m	36	795	2,096.7%

Current Valuations for AEGIS LOGISTICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 64.0, an improvement from the EPS of Rs 39.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 207.1, stands at 3.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 3.1 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	1,176.7	1,434.4
TTM Earnings per share	Rs	39.8	64.0
Diluted earnings per share	Rs	33.9	54.5
Price to Cash Flow	x	4.1	3.1
TTM P/E ratio	x	2.9	3.4
Price / Book Value ratio	x	0.6	0.7
Market Cap	Rs m	6,915	8,123
Dividends per share (Unadj.)	Rs	1.1	1.3

Ratio Analysis for AEGIS LOGISTICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY18, from 0.8x 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 16.8x during FY18, from 12.2x 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 improved and stood at 17.7% during FY18, from 15.9% 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 18.9% 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 improved and stood at 10.3% during FY18, from 7.3% 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	0.8	0.7
Debtors’ Days	Days	66	26
Interest coverage	x	12.2	16.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.3	10.3
Return on equity	%	15.9	17.7
Return on capital employed	%	20.3	18.9

To see how AEGIS LOGISTICS has performed over the last 5 years, please visit here.

AEGIS LOGISTICS Share Price Performance

Over the last one year, AEGIS LOGISTICS share price has moved up from Rs 237.6 to Rs 207.1, registering a loss of Rs 30.6 or around 12.9%.

Overall, the S&P BSE SENSEX is up 8.4% over the year.

(To know more, check out historical annual results for AEGIS LOGISTICS and quarterly results for AEGIS LOGISTICS)