ALLSEC TECHNOLOGIES 2017-18 Annual Report Analysis

Sat, 31 Mar

ALLSEC TECHNOLOGIES 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.

ALLSEC TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 2.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.8% in FY18 as against 19.7% in FY17.
• Depreciation charges decreased by 18.8% and finance costs decreased by 72.3% YoY, respectively.
• Other income grew by 1.2% YoY.
• Net profit for the year declined by 3.5% YoY.
• Net profit margins during the year declined from 19.4% in FY17 to 18.3% in FY18.

ALLSEC TECHNOLOGIES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	3,181	3,250	2.2%
Other income	Rs m	73	74	1.2%
Total Revenues	Rs m	3,254	3,323	2.1%
Gross profit	Rs m	627	610	-2.7%
Depreciation	Rs m	55	45	-18.8%
Interest	Rs m	12	3	-72.3%
Profit before tax	Rs m	633	636	0.5%
Tax	Rs m	16	41	160.3%
Profit after tax	Rs m	617	595	-3.5%
Gross profit margin	%	19.7	18.8
Effective tax rate	%	2.5	6.4
Net profit margin	%	19.4	18.3

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ALLSEC TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 302 million as compared to Rs 256 million in FY17, thereby witnessing an increase of 18.1%.
• Long-term debt stood at Rs 7 million as compared to Rs 3 million during FY17, a growth of 160.0%.
• Current assets rose 39% and stood at Rs 2 billion, while fixed assets rose 7% and stood at Rs 375 million in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 2 billion as against Rs 2 billion during FY17, thereby witnessing a growth of 33%.

ALLSEC TECHNOLOGIES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	1,496	2,075	38.7
Current Liabilities	Rs m	256	302	18.1
Long-term Debt	Rs m	3	7	160.0
Total Liabilities	Rs m	1,696	2,252	32.8
Current assets	Rs m	1,346	1,877	39.5
Fixed Assets	Rs m	350	375	7.2
Total Assets	Rs m	1,696	2,252	32.8

ALLSEC TECHNOLOGIES Cash Flow Statement Analysis

• ALLSEC TECHNOLOGIES's cash flow from operating activities (CFO) during FY18 stood at Rs 525 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -142 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 1 million, an improvement of 101% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 375 million from the Rs 165 million net cash flows seen during FY17.

ALLSEC TECHNOLOGIES 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	703	525	-25.3%
Cash Flow from Investing Activities	Rs m	-423	-142	-
Cash Flow from Financing Activities	Rs m	-93	1	-
Net Cash Flow	Rs m	165	375	127.8%

Current Valuations for ALLSEC TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.1, an decline from the EPS of Rs 40.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 333.0, stands at 8.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 10.0 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	208.7	213.2
TTM Earnings per share	Rs	40.5	39.1
Diluted earnings per share	Rs	40.5	39.1
Price to Cash Flow	x	8.4	10.0
TTM P/E ratio	x	9.2	8.5
Price / Book Value ratio	x	2.9	3.1
Market Cap	Rs m	4,404	6,378
Dividends per share (Unadj.)	Rs	0.0	5.0

Ratio Analysis for ALLSEC TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.2x during FY18, from 5.3x 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 193.7x during FY18, from 54.2x 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 declined and down at 28.7% during FY18, from 41.3% 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 30.7% during FY18, from 43.0% 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 26.6% during FY18, from 37.1% 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	5.3	6.2
Debtors’ Days	Days	419	461
Interest coverage	x	54.2	193.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	37.1	26.6
Return on equity	%	41.3	28.7
Return on capital employed	%	43.0	30.7

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

ALLSEC TECHNOLOGIES Share Price Performance

Over the last one year, ALLSEC TECHNOLOGIES share price has moved down from Rs 369.3 to Rs 333.0, registering a loss of Rs 36.3 or around 9.8%.

Meanwhile, the S&P BSE IT Index is trading at Rs 12,100.6 (down 0.3%). Over the last one year it has moved up from 10,365.5 to 12,100.6, a gain of 1,735 points (up 16.7%).

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

(To know more, check out historical annual results for ALLSEC TECHNOLOGIES and quarterly results for ALLSEC TECHNOLOGIES)

Read: Latest Annual Report Analysis of ALLSEC TECHNOLOGIES