ALOK INDUSTRIES 2017-18 Annual Report Analysis

Sat, 31 Mar

ALOK INDUSTRIES 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.

ALOK INDUSTRIES Income Statement Analysis

• Operating income during the year fell 35.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 831.3% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 248.3% in FY18 as against 17.1% in FY17.
• Depreciation charges decreased by 2.9% and finance costs increased by 36.9% YoY, respectively.
• Other income grew by 285.2% YoY.
• Net profit for the year grew by 504.8% YoY.
• Net profit margins during the year declined from 36.0% in FY17 to 339.9% in FY18.

ALOK INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	85,267	54,654	-35.9%
Other income	Rs m	666	2,566	285.2%
Total Revenues	Rs m	85,933	57,220	-33.4%
Gross profit	Rs m	-14,570	-135,695	831.3%
Depreciation	Rs m	5,607	5,446	-2.9%
Interest	Rs m	34,418	47,113	36.9%
Profit before tax	Rs m	-53,929	-185,689	244.3%
Tax	Rs m	-23,209	104	-100.4%
Profit after tax	Rs m	-30,720	-185,793	504.8%
Gross profit margin	%	-17.1	-248.3
Effective tax rate	%	43.0	-0.1
Net profit margin	%	-36.0	-339.9

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ALOK INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 279 billion as compared to Rs 216 billion in FY17, thereby witnessing an increase of 28.7%.
• Long-term debt down at Rs 74 billion as compared to Rs 93 billion during FY17, a fall of 20.5%.
• Current assets fell 93% and stood at Rs 11 billion, while fixed assets fell 5% and stood at Rs 164 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 175 billion as against Rs 315 billion during FY17, thereby witnessing a fall of 44%.

ALOK INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	16,893	-166,757	-1,087.1
Current Liabilities	Rs m	216,400	278,531	28.7
Long-term Debt	Rs m	92,618	73,672	-20.5
Total Liabilities	Rs m	314,804	174,756	-44.5
Current assets	Rs m	141,871	10,620	-92.5
Fixed Assets	Rs m	172,933	164,135	-5.1
Total Assets	Rs m	314,804	174,756	-44.5

ALOK INDUSTRIES Cash Flow Statement Analysis

• ALOK INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs -979 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -358 million from the Rs 404 million net cash flows seen during FY17.

ALOK INDUSTRIES 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	-30,321	-979	-
Cash Flow from Investing Activities	Rs m	-997	2,110	-
Cash Flow from Financing Activities	Rs m	31,721	-1,490	-
Net Cash Flow	Rs m	404	-358	-

Current Valuations for ALOK INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -134.9, an decline from the EPS of Rs -22.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3.0, stands at -0.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.1 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 0.0 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	61.9	39.7
TTM Earnings per share	Rs	-22.3	-134.9
Diluted earnings per share	Rs	-6.2	-37.4
Price to Cash Flow	x	-0.6	0.0
TTM P/E ratio	x	-0.4	-0.1
Price / Book Value ratio	x	0.3	0.0
Market Cap	Rs m	5,268	4,931
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ALOK INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.0x during FY18, from 0.7x 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 -2.9x 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 111.4% during FY18, from -181.8% 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 148.9% 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 -79.4% during FY18, from 1.2% 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	0.7	0.0
Debtors’ Days	Days	43	2
Interest coverage	x	-0.6	-2.9
Debt to equity ratio	x	5.5	-0.4
Return on assets	%	1.2	-79.4
Return on equity	%	-181.8	111.4
Return on capital employed	%	-17.8	148.9

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

ALOK INDUSTRIES Share Price Performance

Over the last one year, ALOK INDUSTRIES share price has moved up from Rs 3.0 to Rs 3.0, registering a gain of Rs 0.0 or around 0.7%.

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

(To know more, check out historical annual results for ALOK INDUSTRIES and quarterly results for ALOK INDUSTRIES)

Read: Latest Annual Report Analysis of ALOK INDUSTRIES