Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  


HUBTOWN 2017-18 Annual Report Analysis
Sat, 31 Mar

HUBTOWN 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.

HUBTOWN Income Statement Analysis

  • Operating income during the year rose 4.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 89.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.8% in FY18 as against 67.9% in FY17.
  • Depreciation charges decreased by 2.5% and finance costs decreased by 17.2% YoY, respectively.
  • Other income grew by 783.1% YoY.
  • Net profit for the year declined by 28.1% YoY.
  • Net profit margins during the year grew from 5.8% in FY17 to 4.0% in FY18.

HUBTOWN Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 5,425 5,641 4.0%
Other income Rs m 329 2,905 783.1%
Total Revenues Rs m 5,754 8,546 48.5%
Gross profit Rs m 3,682 385 -89.5%
Depreciation Rs m 33 32 -2.5%
Interest Rs m 4,237 3,509 -17.2%
Profit before tax Rs m -259 -250 -3.2%
Tax Rs m 57 -23 -140.3%
Profit after tax Rs m -316 -227 -28.1%
Gross profit margin % 67.9 6.8
Effective tax rate % -22.2 9.3
Net profit margin % -5.8 -4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

HUBTOWN Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 26 billion as compared to Rs 27 billion in FY17, thereby witnessing an decrease of -3.6%.
  • Long-term debt down at Rs 4 billion as compared to Rs 5 billion during FY17, a fall of 24.9%.
  • Current assets rose 4% and stood at Rs 29 billion, while fixed assets fell 8% and stood at Rs 19 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 48 billion as against Rs 49 billion during FY17, thereby witnessing a fall of 1%.

HUBTOWN Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 16,507 16,217 -1.8
 
Current Liabilities Rs m 27,172 26,200 -3.6
Long-term Debt Rs m 5,223 3,921 -24.9
Total Liabilities Rs m 48,958 48,339 -1.3
 
Current assets Rs m 28,275 29,314 3.7
Fixed Assets Rs m 20,683 19,026 -8.0
Total Assets Rs m 48,958 48,339 -1.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HUBTOWN Cash Flow Statement Analysis

  • HUBTOWN's cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 71 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 142 million from the Rs -77 million net cash flows seen during FY17.

HUBTOWN 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 -26 4,512 -
Cash Flow from Investing Activities Rs m 1,542 71 -95.4%
Cash Flow from Financing Activities Rs m -1,593 -4,441 -
Net Cash Flow Rs m -77 142 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HUBTOWN

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.1, an improvement from the EPS of Rs -4.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 70.3, stands at 19.2 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 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at -44.2 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 74.6 77.6
TTM Earnings per share Rs -4.3 -3.1
Diluted earnings per share Rs -4.3 -3.1
Price to Cash Flow x -23.4 -44.2
TTM P/E ratio x 101.2 19.2
Price / Book Value ratio x 0.5 0.5
Market Cap Rs m 7,621 8,639
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HUBTOWN

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 1.0x 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 0.9x 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 improved and stood at -1.4% during FY18, from -1.9% 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 16.2% during FY18, from 18.3% 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 declined and down at 6.8% during FY18, from 8.0% 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 1.0 1.1
Debtors’ Days Days 2,031 2,916
Interest coverage x 0.9 0.9
Debt to equity ratio x 0.3 0.2
Return on assets % 8.0 6.8
Return on equity % -1.9 -1.4
Return on capital employed % 18.3 16.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

HUBTOWN Share Price Performance

Over the last one year, HUBTOWN share price has moved down from Rs 91.1 to Rs 70.3, registering a loss of Rs 20.9 or around 22.9%.

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 HUBTOWN and quarterly results for HUBTOWN)

Annual Report FAQs

What is the current share price of HUBTOWN?

HUBTOWN currently trades at Rs 131.6 per share. You can check out the latest share price performance of HUBTOWN here...

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

The revenues of HUBTOWN stood at Rs 8,546 m in FY18, which was up 48.5% compared to Rs 5,754 m reported in FY17.

HUBTOWN's revenue has grown from Rs 5,905 m in FY12 to Rs 8,546 m in FY18.

Over the past 7 years, the revenue of HUBTOWN has grown at a CAGR of 6.4%.

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

The net loss of HUBTOWN stood at Rs -227 m in FY18, which was down -28.1% compared to Rs -316 m reported in FY17.

This compares to a net loss of Rs -45 m in FY16 and a net loss of Rs -26 m in FY13.

Over the past 7 years, HUBTOWN net profit has grown at a CAGR of NaN%.

What does the cash flow statement of HUBTOWN 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 HUBTOWN reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 4,512 m as compared to Rs -26 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs 71 m as compared to Rs 1,542 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -4,441 m as compared to Rs -1,593 m in FY17.

Here's the cash flow statement of HUBTOWN for the past 7 years.

(Rs m)FY12FY13FY16FY17FY18
From Operations1,0442,5961,384-264,512
From Investments2,1432,44951,54271
From Financial Activity-2,986-4,499-1,439-1,593-4,441
Net Cashflow180621-49-77142

What does the Key Ratio analysis of HUBTOWN 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 HUBTOWN reveals:

  • Operating profit margins witnessed a fall and stood at 6.8% in FY18 as against 67.9% in FY17.
  • Net profit margins grew from 5.8% in FY17 to 4.0% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.2 as compared to 0.3 in FY17.

Here's the ratio/financial analysis of HUBTOWN for the past 7 years.

 FY12FY13FY16FY17FY18
Operating Profit Margin (%)50.367.784.567.96.8
Net Profit Margin (%)6.2-0.7-1.1-5.8-4.0
Debt to Equity Ratio (x)0.20.50.30.30.2

Read: Latest Annual Report Analysis of HUBTOWN

Equitymaster requests your view! Post a comment on "HUBTOWN 2017-18 Annual Report Analysis". Click here!