HUBTOWN LTD 2017-18 Annual Report Analysis

Tue, 18 Dec

HUBTOWN LTD 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 LTD Income Statement Analysis

• Operating income during the year rose 3.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 79.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.8% in FY18 as against 65.7% in FY17.
• Depreciation charges decreased by 2.5% and finance costs decreased by 10.2% YoY, respectively.
• Other income grew by 784.4% YoY.
• Net profit for the year declined by 28.2% YoY.
• Net profit margins during the year grew from 5.5% in FY17 to 2.7% in FY18.

HUBTOWN LTD Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	5,425	5,622	3.6%
Other income	Rs m	329	2,910	784.4%
Total Revenues	Rs m	5,754	8,532	48.3%
Gross profit	Rs m	3,567	717	-79.9%
Depreciation	Rs m	33	32	-2.5%
Interest	Rs m	4,237	3,805	-10.2%
Profit before tax	Rs m	-373	-210	-43.8%
Tax	Rs m	-58	17	-129.7%
Profit after tax	Rs m	-316	-227	-28.2%
Gross profit margin	%	65.7	12.8
Effective tax rate	%	15.4	-8.2
Net profit margin	%	-5.5	-2.7

HUBTOWN LTD Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 28 billion as compared to Rs 27 billion in FY17, thereby witnessing an increase of 2.3%.
• Long-term debt down at Rs 4 billion as compared to Rs 5 billion during FY17, a fall of 22.2%.
• Current assets rose 5% and stood at Rs 30 billion, while fixed assets fell 2% and stood at Rs 1 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 49 billion as against Rs 49 billion during FY17, thereby witnessing a fall of 0%.

HUBTOWN LTD Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	16,507	16,205	-1.8
Current Liabilities	Rs m	27,172	27,809	2.3
Long-term Debt	Rs m	5,223	4,061	-22.2
Total Liabilities	Rs m	49,314	49,164	-0.3
Current assets	Rs m	28,275	29,675	5.0
Fixed Assets	Rs m	1,041	1,021	-2.0
Total Assets	Rs m	49,314	49,164	-0.3

HUBTOWN LTD Cash Flow Statement Analysis

• HUBTOWN LTD'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 -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 110 million from the Rs -77 million net cash flows seen during FY17.

HUBTOWN LTD 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	4,776	-
Cash Flow from Investing Activities	Rs m	1,542	71	-95.4%
Cash Flow from Financing Activities	Rs m	-1,593	-4,736	-
Net Cash Flow	Rs m	-77	110	-

Current Valuations for HUBTOWN LTD

• 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 41.8, stands at -18.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at -15.6 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	74.6	77.3
TTM Earnings per share	Rs	-4.3	-3.1
Diluted earnings per share	Rs	-4.3	-3.1
Price to Cash Flow	x	-10.7	-15.6
TTM P/E ratio	x	-18.4	-18.4
Price / Book Value ratio	x	0.5	0.5
Market Cap	Rs m	3,041	3,040
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HUBTOWN LTD

• 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 17.7% during FY18, from 17.8% 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 7.3% 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	203	306
Interest coverage	x	0.9	0.9
Debt to equity ratio	x	0.3	0.3
Return on assets	%	8.0	7.3
Return on equity	%	-1.9	-1.4
Return on capital employed	%	17.8	17.7

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

HUBTOWN LTD Share Price Performance

Over the last one year, HUBTOWN LTD share price has moved up from Rs 127.9 to Rs 41.8, registering a loss of Rs 86.1 or around 67.3%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 1,833.2 (up 0.1%). Over the last one year it has moved down from 2,378.1 to 1,833.2, a loss of 545 points (down 22.9%).

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

(To know more, check out historical annual results for HUBTOWN LTD and quarterly results for HUBTOWN LTD)