AHLUWALIA CONTRACTS 2017-18 Annual Report Analysis

Sat, 31 Mar

AHLUWALIA CONTRACTS 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.

AHLUWALIA CONTRACTS Income Statement Analysis

• Operating income during the year rose 15.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.3% in FY18 as against 12.2% in FY17.
• Depreciation charges increased by 7.2% and finance costs decreased by 7.4% YoY, respectively.
• Other income declined by 24.6% YoY.
• Net profit for the year grew by 33.8% YoY.
• Net profit margins during the year grew from 6.0% in FY17 to 7.0% in FY18.

AHLUWALIA CONTRACTS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	14,266	16,466	15.4%
Other income	Rs m	84	63	-24.6%
Total Revenues	Rs m	14,349	16,529	15.2%
Gross profit	Rs m	1,736	2,192	26.3%
Depreciation	Rs m	239	256	7.2%
Interest	Rs m	271	251	-7.4%
Profit before tax	Rs m	1,310	1,748	33.5%
Tax	Rs m	448	594	32.8%
Profit after tax	Rs m	862	1,154	33.8%
Gross profit margin	%	12.2	13.3
Effective tax rate	%	34.2	34.0
Net profit margin	%	6.0	7.0

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AHLUWALIA CONTRACTS Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 6 billion as compared to Rs 7 billion in FY17, thereby witnessing an decrease of -9.3%.
• Long-term debt stood at Rs 7 million as compared to Rs 0 million during FY17, a growth of 36400.0%.
• Current assets rose 8% and stood at Rs 9 billion, while fixed assets fell 14% and stood at Rs 3 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 12 billion as against Rs 12 billion during FY17, thereby witnessing a growth of 1%.

AHLUWALIA CONTRACTS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	5,048	6,213	23.1
Current Liabilities	Rs m	6,611	5,997	-9.3
Long-term Debt	Rs m	0	7	36,400.0
Total Liabilities	Rs m	12,177	12,304	1.0
Current assets	Rs m	8,457	9,100	7.6
Fixed Assets	Rs m	3,719	3,203	-13.9
Total Assets	Rs m	12,177	12,304	1.0

AHLUWALIA CONTRACTS Cash Flow Statement Analysis

• AHLUWALIA CONTRACTS's cash flow from operating activities (CFO) during FY18 stood at Rs 810 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -198 million, an improvement of 128.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -696 million, an improvement of 1% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -85 million from the Rs 477 million net cash flows seen during FY17.

AHLUWALIA CONTRACTS 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	1,265	810	-36.0%
Cash Flow from Investing Activities	Rs m	-87	-198	-
Cash Flow from Financing Activities	Rs m	-701	-696	-
Net Cash Flow	Rs m	477	-85	-

Current Valuations for AHLUWALIA CONTRACTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.2, an improvement from the EPS of Rs 12.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 380.0, stands at 22.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 15.7 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	213.0	245.8
TTM Earnings per share	Rs	12.9	17.2
Diluted earnings per share	Rs	12.9	17.2
Price to Cash Flow	x	19.0	15.7
TTM P/E ratio	x	24.3	22.0
Price / Book Value ratio	x	3.8	3.6
Market Cap	Rs m	19,299	22,163
Dividends per share (Unadj.)	Rs	0.0	0.3

Ratio Analysis for AHLUWALIA CONTRACTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY18, from 1.3x 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 8.0x during FY18, from 5.8x 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 improved and stood at 18.6% during FY18, from 17.1% 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 32.1% during FY18, from 31.3% 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 11.4% during FY18, from 9.3% 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	1.3	1.5
Debtors’ Days	Days	1,164	1,254
Interest coverage	x	5.8	8.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.3	11.4
Return on equity	%	17.1	18.6
Return on capital employed	%	31.3	32.1

To see how AHLUWALIA CONTRACTS has performed over the last 5 years, please visit here.

AHLUWALIA CONTRACTS Share Price Performance

Over the last one year, AHLUWALIA CONTRACTS share price has moved up from Rs 311.7 to Rs 380.0, registering a gain of Rs 68.3 or around 21.9%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,229.9 (down 1.1%). Over the last one year it has moved up from 1,600.0 to 2,229.9, a gain of 630 points (up 39.4%).

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

(To know more, check out historical annual results for AHLUWALIA CONTRACTS and quarterly results for AHLUWALIA CONTRACTS)

Read: Latest Annual Report Analysis of AHLUWALIA CONTRACTS