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ARSS INFRASTRUCTURE 2017-18 Annual Report Analysis

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ARSS INFRASTRUCTURE 2017-18 Annual Report Analysis
Tue, 18 Dec

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 83.4% YoY during the fiscal. Operating profit margins witnessed a growth and down at 6.9% in FY18 as against 29.0% in FY17.
  • Depreciation charges decreased by 26.6% and finance costs decreased by 51.6% YoY, respectively.
  • Other income grew by 27.9% YoY.
  • Net profit for the year declined by 82.4% YoY.
  • Net profit margins during the year grew from 39.1% in FY17 to 9.7% 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 -2,427 -403 -83.4%
Depreciation Rs m 326 239 -26.6%
Interest Rs m 770 373 -51.6%
Profit before tax Rs m -3,374 -824 -75.6%
Tax Rs m -48 -240 402.3%
Profit after tax Rs m -3,326 -584 -82.4%
Gross profit margin % -29.0 -6.9
Effective tax rate % 1.4 29.1
Net profit margin % -39.1 -9.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 3.9%.
  • 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 fell 37% and stood at Rs 2 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 2%.

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 11,345 11,791 3.9
Long-term Debt Rs m 7,325 6,631 -9.5
Total Liabilities Rs m 19,167 18,761 -2.1
 
Current assets Rs m 7,208 3,286 -54.4
Fixed Assets Rs m 3,057 1,937 -36.6
Total Assets Rs m 19,167 18,761 -2.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ARSS INFRASTRUCTURE Cash Flow Statement Analysis

  • ARSS INFRASTRUCTURE's cash flow from operating activities (CFO) during FY18 stood at Rs 221 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 -94 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 237 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 -1,574 221 -
Cash Flow from Investing Activities Rs m 414 110 -73.5%
Cash Flow from Financing Activities Rs m 1,151 -94 -
Net Cash Flow Rs m -10 237 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ARSS INFRASTRUCTURE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -25.7, an improvement from the EPS of Rs -224.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 28.0, stands at -1.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at -1.2 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 563.8 257.0
TTM Earnings per share Rs -224.2 -25.7
Diluted earnings per share Rs -224.2 -39.4
Price to Cash Flow x -0.1 -1.2
TTM P/E ratio x -1.1 -1.1
Price / Book Value ratio x 3.6 4.4
Market Cap Rs m 416 416
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 ARSS INFRASTRUCTURE

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved 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 deteriorated and stood at -1.2x during FY18, from -3.4x 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 -181.4% during FY18, from -1,085.6% 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 -6.5% during FY18, from -34.1% 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 -1.1% during FY18, from -13.3% 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 0.6 0.3
Debtors’ Days Days 36 32
Interest coverage x -3.4 -1.2
Debt to equity ratio x 23.9 20.6
Return on assets % -13.3 -1.1
Return on equity % -1,085.6 -181.4
Return on capital employed % -34.1 -6.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 up from Rs 59.5 to Rs 28.0, registering a loss of Rs 31.5 or around 52.9%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 1,836.8 (up 0.3%). Over the last one year it has moved down from 2,378.1 to 1,836.8, a loss of 541 points (down 22.8%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

(To know more, check out historical annual results for ARSS INFRASTRUCTURE and quarterly results for ARSS INFRASTRUCTURE)

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