CASTEX TECHNOLOGIES 2017-18 Annual Report Analysis

Sat, 31 Mar

CASTEX TECHNOLOGIES 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.

CASTEX TECHNOLOGIES Income Statement Analysis

• Operating income during the year fell 64.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 369.4% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 152.4% in FY18 as against 11.6% in FY17.
• Depreciation charges decreased by 9.8% and finance costs decreased by 20.3% YoY, respectively.
• Other income grew by 713.2% YoY.
• Net profit for the year grew by 84.5% YoY.
• Net profit margins during the year declined from 69.7% in FY17 to 360.5% in FY18.

CASTEX TECHNOLOGIES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	14,714	5,252	-64.3%
Other income	Rs m	14	117	713.2%
Total Revenues	Rs m	14,728	5,369	-63.5%
Gross profit	Rs m	-1,705	-8,006	369.4%
Depreciation	Rs m	5,265	4,748	-9.8%
Interest	Rs m	8,067	6,428	-20.3%
Profit before tax	Rs m	-15,023	-19,066	26.9%
Tax	Rs m	-4,761	-131	-97.2%
Profit after tax	Rs m	-10,262	-18,934	84.5%
Gross profit margin	%	-11.6	-152.4
Effective tax rate	%	31.7	0.7
Net profit margin	%	-69.7	-360.5

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CASTEX TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 77 billion as compared to Rs 70 billion in FY17, thereby witnessing an increase of 9.8%.
• Long-term debt stood at Rs 127 million as compared to Rs 113 million during FY17, a growth of 12.4%.
• Current assets fell 68% and stood at Rs 7 billion, while fixed assets rose 6% and stood at Rs 72 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 80 billion as against Rs 91 billion during FY17, thereby witnessing a fall of 12%.

CASTEX TECHNOLOGIES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	23,050	4,952	-78.5
Current Liabilities	Rs m	70,449	77,372	9.8
Long-term Debt	Rs m	113	127	12.4
Total Liabilities	Rs m	90,842	79,687	-12.3
Current assets	Rs m	22,696	7,192	-68.3
Fixed Assets	Rs m	68,147	72,495	6.4
Total Assets	Rs m	90,842	79,687	-12.3

CASTEX TECHNOLOGIES Cash Flow Statement Analysis

• CASTEX TECHNOLOGIES's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -847 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -152 million, an improvement of 83% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 35 million from the Rs -261 million net cash flows seen during FY17.

CASTEX TECHNOLOGIES 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	5,054	1,058	-79.1%
Cash Flow from Investing Activities	Rs m	-4,365	-847	-
Cash Flow from Financing Activities	Rs m	-918	-152	-
Net Cash Flow	Rs m	-261	35	-

Current Valuations for CASTEX TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -50.1, an decline from the EPS of Rs -27.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3.5, stands at -0.1 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 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at -0.2 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	38.9	13.9
TTM Earnings per share	Rs	-27.1	-50.1
Diluted earnings per share	Rs	-27.1	-50.1
Price to Cash Flow	x	-0.6	-0.2
TTM P/E ratio	x	-0.3	-0.1
Price / Book Value ratio	x	0.2	0.5
Market Cap	Rs m	4,091	2,437
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CASTEX TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.1x during FY18, from 0.3x 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 deteriorated and stood at -2.0x during FY18, from -0.9x 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 -382.4% during FY18, from -44.5% 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 -248.8% during FY18, from -30.0% 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 -15.7% during FY18, from -2.4% 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	0.3	0.1
Debtors’ Days	Days	839	2,539
Interest coverage	x	-0.9	-2.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-2.4	-15.7
Return on equity	%	-44.5	-382.4
Return on capital employed	%	-30.0	-248.8

To see how CASTEX TECHNOLOGIES has performed over the last 5 years, please visit here.

CASTEX TECHNOLOGIES Share Price Performance

Over the last one year, CASTEX TECHNOLOGIES share price has moved down from Rs 8.0 to Rs 3.5, registering a loss of Rs 4.5 or around 55.9%.

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

(To know more, check out historical annual results for CASTEX TECHNOLOGIES and quarterly results for CASTEX TECHNOLOGIES)