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ARSS INFRASTRUCTURE 2017-18 Annual Report Analysis
Sat, 31 Mar

ARSS INFRASTRUCTURE 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.

ARSS INFRASTRUCTURE Income Statement Analysis

  • Operating income during the year fell 30.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 86.1% YoY during the fiscal. Operating profit margins witnessed a growth and down at 5.6% in FY18 as against 28.4% in FY17.
  • Depreciation charges decreased by 26.6% and finance costs decreased by 49.7% YoY, respectively.
  • Other income grew by 27.9% YoY.
  • Net profit for the year declined by 83.5% YoY.
  • Net profit margins during the year grew from 39.6% in FY17 to 9.4% in FY18.

ARSS INFRASTRUCTURE Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 8,367 5,843 -30.2%
Other income Rs m 149 191 27.9%
Total Revenues Rs m 8,516 6,034 -29.1%
Gross profit Rs m -2,374 -330 -86.1%
Depreciation Rs m 326 239 -26.6%
Interest Rs m 813 409 -49.7%
Profit before tax Rs m -3,364 -788 -76.6%
Tax Rs m -48 -240 402.3%
Profit after tax Rs m -3,316 -548 -83.5%
Gross profit margin % -28.4 -5.6
Effective tax rate % 1.4 30.5
Net profit margin % -39.6 -9.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

ARSS INFRASTRUCTURE Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 12 billion as compared to Rs 11 billion in FY17, thereby witnessing an increase of 4.1%.
  • Long-term debt down at Rs 7 billion as compared to Rs 7 billion during FY17, a fall of 9.5%.
  • Current assets fell 54% and stood at Rs 3 billion, while fixed assets rose 28% and stood at Rs 15 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 19 billion as against Rs 19 billion during FY17, thereby witnessing a fall of 3%.

ARSS INFRASTRUCTURE Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 306 322 5.1
 
Current Liabilities Rs m 11,327 11,791 4.1
Long-term Debt Rs m 7,325 6,631 -9.5
Total Liabilities Rs m 19,167 18,651 -2.7
 
Current assets Rs m 7,139 3,286 -54.0
Fixed Assets Rs m 12,027 15,364 27.7
Total Assets Rs m 19,167 18,651 -2.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ARSS INFRASTRUCTURE Cash Flow Statement Analysis

  • ARSS INFRASTRUCTURE's cash flow from operating activities (CFO) during FY18 stood at Rs 838 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 110 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -467 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 481 million from the Rs -10 million net cash flows seen during FY17.

ARSS INFRASTRUCTURE 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 -1,574 838 -
Cash Flow from Investing Activities Rs m 414 110 -73.5%
Cash Flow from Financing Activities Rs m 1,151 -467 -
Net Cash Flow Rs m -10 481 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ARSS INFRASTRUCTURE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -24.1, an improvement from the EPS of Rs -223.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 43.4, stands at -1.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at -4.6 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 563.8 257.0
TTM Earnings per share Rs -223.5 -24.1
Diluted earnings per share Rs -145.8 -24.1
Price to Cash Flow x -0.5 -4.6
TTM P/E ratio x -0.5 -1.4
Price / Book Value ratio x 3.6 4.4
Market Cap Rs m 1,091 1,407
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ARSS INFRASTRUCTURE

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY18, from 0.6x 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 -0.9x during FY18, from -3.1x 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 -170.1% during FY18, from -1,082.2% 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 -5.4% during FY18, from -33.4% 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 improved and stood at -0.7% during FY18, from -13.1% 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 0.6 0.3
Debtors’ Days Days 358 317
Interest coverage x -3.1 -0.9
Debt to equity ratio x 23.9 20.6
Return on assets % -13.1 -0.7
Return on equity % -1,082.2 -170.1
Return on capital employed % -33.4 -5.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how ARSS INFRASTRUCTURE has performed over the last 5 years, please visit here.

ARSS INFRASTRUCTURE Share Price Performance

Over the last one year, ARSS INFRASTRUCTURE share price has moved down from Rs 68.6 to Rs 43.4, registering a loss of Rs 25.2 or around 36.7%.

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 ARSS INFRASTRUCTURE and quarterly results for ARSS INFRASTRUCTURE)

Annual Report FAQs

What is the current share price of ARSS INFRASTRUCTURE?

ARSS INFRASTRUCTURE currently trades at Rs 18.0 per share. You can check out the latest share price performance of ARSS INFRASTRUCTURE here...

What was the revenue of ARSS INFRASTRUCTURE in FY18? How does it compare to earlier years?

The revenues of ARSS INFRASTRUCTURE stood at Rs 6,034 m in FY18, which was down -29.1% compared to Rs 8,516 m reported in FY17.

ARSS INFRASTRUCTURE's revenue has fallen from Rs 6,449 m in FY16 to Rs 6,034 m in FY18.

Over the past 3 years, the revenue of ARSS INFRASTRUCTURE has grown at a CAGR of -3.3%.

What was the net profit of ARSS INFRASTRUCTURE in FY18? How does it compare to earlier years?

The net loss of ARSS INFRASTRUCTURE stood at Rs -548 m in FY18, which was down -83.5% compared to Rs -3,316 m reported in FY17.

This compares to a net profit of Rs 50 m in FY16.

Over the past 3 years, ARSS INFRASTRUCTURE net profit has grown at a CAGR of NaN%.

What does the cash flow statement of ARSS INFRASTRUCTURE reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ARSS INFRASTRUCTURE reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 838 m as compared to Rs -1,574 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs 110 m as compared to Rs 414 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -467 m as compared to Rs 1,151 m in FY17.

Here's the cash flow statement of ARSS INFRASTRUCTURE for the past 3 years.

(Rs m)FY16FY17FY18
From Operations1,875-1,574838
From Investments-180414110
From Financial Activity-1,6481,151-467
Net Cashflow47-10481

What does the Key Ratio analysis of ARSS INFRASTRUCTURE reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ARSS INFRASTRUCTURE reveals:

  • Operating profit margins witnessed a growth and down at 5.6% in FY18 as against 28.4% in FY17.
  • Net profit margins grew from 39.6% in FY17 to 9.4% in FY18.
  • Debt to Equity ratio for FY18 stood at 20.6 as compared to 23.9 in FY17.

Here's the ratio/financial analysis of ARSS INFRASTRUCTURE for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)29.8-28.4-5.6
Net Profit Margin (%)0.8-39.6-9.4
Debt to Equity Ratio (x)2.123.920.6

Read: Latest Annual Report Analysis of ARSS INFRASTRUCTURE

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