AKSH OPTIFIBRE 2017-18 Annual Report Analysis

Sat, 31 Mar

AKSH OPTIFIBRE 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.

AKSH OPTIFIBRE Income Statement Analysis

• Operating income during the year rose 30.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 47.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.9% in FY18 as against 10.5% in FY17.
• Depreciation charges increased by 8.7% and finance costs increased by 33.6% YoY, respectively.
• Other income declined by 46.4% YoY.
• Net profit for the year grew by 115.7% YoY.
• Net profit margins during the year grew from 2.1% in FY17 to 3.4% in FY18.

AKSH OPTIFIBRE Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	4,680	6,121	30.8%
Other income	Rs m	52	28	-46.4%
Total Revenues	Rs m	4,732	6,149	30.0%
Gross profit	Rs m	492	728	47.9%
Depreciation	Rs m	217	235	8.7%
Interest	Rs m	146	194	33.6%
Profit before tax	Rs m	182	326	79.3%
Tax	Rs m	85	117	37.9%
Profit after tax	Rs m	97	208	115.7%
Gross profit margin	%	10.5	11.9
Effective tax rate	%	46.8	36.0
Net profit margin	%	2.1	3.4

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AKSH OPTIFIBRE Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 4 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 37.3%.
• Long-term debt stood at Rs 990 million as compared to Rs 332 million during FY17, a growth of 198.2%.
• Current assets rose 18% and stood at Rs 5 billion, while fixed assets rose 34% and stood at Rs 4 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 9 billion as against Rs 7 billion during FY17, thereby witnessing a growth of 25%.

AKSH OPTIFIBRE Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	4,623	4,838	4.7
Current Liabilities	Rs m	2,573	3,532	37.3
Long-term Debt	Rs m	332	990	198.2
Total Liabilities	Rs m	7,496	9,379	25.1
Current assets	Rs m	4,226	5,001	18.3
Fixed Assets	Rs m	3,269	4,378	33.9
Total Assets	Rs m	7,496	9,379	25.1

AKSH OPTIFIBRE Cash Flow Statement Analysis

• AKSH OPTIFIBRE's cash flow from operating activities (CFO) during FY18 stood at Rs 265 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion, an improvement of 94.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 1 billion, an improvement of 623% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 42 million from the Rs -2 million net cash flows seen during FY17.

AKSH OPTIFIBRE 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	834	265	-68.2%
Cash Flow from Investing Activities	Rs m	-641	-1,243	-
Cash Flow from Financing Activities	Rs m	-195	1,021	-
Net Cash Flow	Rs m	-2	42	-

Current Valuations for AKSH OPTIFIBRE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an improvement from the EPS of Rs 0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 31.4, stands at 22.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.6 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	28.8	37.6
TTM Earnings per share	Rs	0.6	1.3
Diluted earnings per share	Rs	0.6	1.3
Price to Cash Flow	x	11.1	11.6
TTM P/E ratio	x	23.0	22.4
Price / Book Value ratio	x	0.8	1.1
Market Cap	Rs m	3,564	5,162
Dividends per share (Unadj.)	Rs	0.0	0.3

Ratio Analysis for AKSH OPTIFIBRE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY18, from 1.6x 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 2.7x during FY18, from 2.2x 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 4.3% during FY18, from 2.1% 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 8.9% during FY18, from 6.6% 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 4.3% during FY18, from 3.2% 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	1.6	1.4
Debtors’ Days	Days	1,474	1,465
Interest coverage	x	2.2	2.7
Debt to equity ratio	x	0.1	0.2
Return on assets	%	3.2	4.3
Return on equity	%	2.1	4.3
Return on capital employed	%	6.6	8.9

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

AKSH OPTIFIBRE Share Price Performance

Over the last one year, AKSH OPTIFIBRE share price has moved up from Rs 21.3 to Rs 31.4, registering a gain of Rs 10.1 or around 47.2%.

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

(To know more, check out historical annual results for AKSH OPTIFIBRE and quarterly results for AKSH OPTIFIBRE)

Read: Latest Annual Report Analysis of AKSH OPTIFIBRE