GE T&D INDIA 2017-18 Annual Report Analysis

Sat, 31 Mar

GE T&D INDIA 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.

GE T&D INDIA Income Statement Analysis

• Operating income during the year rose 11.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 384.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.4% in FY18 as against 1.5% in FY17.
• Depreciation charges increased by 1.9% and finance costs decreased by 42.0% YoY, respectively.
• Other income grew by 70.6% YoY.
• Net profit for the year declined by 340.9% YoY.
• Net profit margins during the year grew from 2.3% in FY17 to 4.9% in FY18.

GE T&D INDIA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	38,447	42,776	11.3%
Other income	Rs m	1,407	2,401	70.6%
Total Revenues	Rs m	39,854	45,177	13.4%
Gross profit	Rs m	566	2,744	384.9%
Depreciation	Rs m	882	899	1.9%
Interest	Rs m	1,824	1,059	-42.0%
Profit before tax	Rs m	-733	3,188	-535.1%
Tax	Rs m	134	1,101	721.9%
Profit after tax	Rs m	-867	2,088	-340.9%
Gross profit margin	%	1.5	6.4
Effective tax rate	%	-18.3	34.5
Net profit margin	%	-2.3	4.9

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GE T&D INDIA Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 38 billion as compared to Rs 44 billion in FY17, thereby witnessing an decrease of -14.4%.
• Current assets fell 8% and stood at Rs 41 billion, while fixed assets rose 10% and stood at Rs 15 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 56 billion as against Rs 58 billion during FY17, thereby witnessing a fall of 4%.

GE T&D INDIA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	10,328	11,896	15.2
Current Liabilities	Rs m	44,075	37,742	-14.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	58,006	55,672	-4.0
Current assets	Rs m	44,564	40,953	-8.1
Fixed Assets	Rs m	13,442	14,720	9.5
Total Assets	Rs m	58,006	55,672	-4.0

GE T&D INDIA Cash Flow Statement Analysis

• GE T&D INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 11 billion, an improvement of 459.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -3 billion, an improvement of 561.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 2 billion from the Rs 106 million net cash flows seen during FY17.

GE T&D INDIA 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	1,884	10,540	459.5%
Cash Flow from Investing Activities	Rs m	-461	-3,045	-
Cash Flow from Financing Activities	Rs m	-1,306	-5,848	-
Net Cash Flow	Rs m	106	1,634	1,438.8%

Current Valuations for GE T&D INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an improvement from the EPS of Rs -3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 404.8, stands at 49.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.7 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 33.9 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	150.2	167.1
TTM Earnings per share	Rs	-3.4	8.2
Diluted earnings per share	Rs	-3.4	8.2
Price to Cash Flow	x	5,495.9	33.9
TTM P/E ratio	x	-97.9	49.6
Price / Book Value ratio	x	9.1	8.5
Market Cap	Rs m	94,232	101,202
Dividends per share (Unadj.)	Rs	1.8	1.8

Ratio Analysis for GE T&D INDIA

• 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 improved and stood at 4.0x during FY18, from 0.6x 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 17.5% during FY18, from -8.4% 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 35.7% during FY18, from 10.6% 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 5.7% during FY18, from 1.6% 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	216	154
Interest coverage	x	0.6	4.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.6	5.7
Return on equity	%	-8.4	17.5
Return on capital employed	%	10.6	35.7

To see how GE T&D INDIA has performed over the last 5 years, please visit here.

GE T&D INDIA Share Price Performance

Over the last one year, GE T&D INDIA share price has moved up from Rs 330.6 to Rs 404.8, registering a gain of Rs 74.3 or around 22.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

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

(To know more, check out historical annual results for GE T&D INDIA and quarterly results for GE T&D INDIA)

Read: Latest Annual Report Analysis of GE T&D INDIA