ANANT RAJ LTD. 2017-18 Annual Report Analysis

Tue, 18 Dec

ANANT RAJ 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.

ANANT RAJ LTD. Income Statement Analysis

• Operating income during the year rose 3.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 21.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.0% in FY18 as against 30.2% in FY17.
• Depreciation charges decreased by 4.9% and finance costs increased by 0.8% YoY, respectively.
• Other income grew by 71.7% YoY.
• Net profit for the year declined by 13.2% YoY.
• Net profit margins during the year declined from 15.4% in FY17 to 12.5% in FY18.

ANANT RAJ LTD. Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	4,660	4,801	3.0%
Other income	Rs m	287	492	71.7%
Total Revenues	Rs m	4,946	5,293	7.0%
Gross profit	Rs m	1,408	1,103	-21.7%
Depreciation	Rs m	274	260	-4.9%
Interest	Rs m	545	549	0.8%
Profit before tax	Rs m	876	785	-10.3%
Tax	Rs m	207	183	-11.6%
Profit after tax	Rs m	760	660	-13.2%
Gross profit margin	%	30.2	23.0
Effective tax rate	%	23.7	23.3
Net profit margin	%	15.4	12.5

ANANT RAJ LTD. Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 11 billion as compared to Rs 10 billion in FY17, thereby witnessing an increase of 6.8%.
• Long-term debt stood at Rs 20 billion as compared to Rs 12 billion during FY17, a growth of 62.9%.
• Current assets rose 24% and stood at Rs 29 billion, while fixed assets rose 8% and stood at Rs 30 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 75 billion as against Rs 67 billion during FY17, thereby witnessing a growth of 12%.

ANANT RAJ LTD. Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	42,459	41,867	-1.4
Current Liabilities	Rs m	10,383	11,094	6.8
Long-term Debt	Rs m	12,452	20,282	62.9
Total Liabilities	Rs m	66,923	74,731	11.7
Current assets	Rs m	22,932	28,505	24.3
Fixed Assets	Rs m	27,720	29,807	7.5
Total Assets	Rs m	66,923	74,731	11.7

ANANT RAJ LTD. Cash Flow Statement Analysis

• ANANT RAJ LTD.'s cash flow from operating activities (CFO) during FY18 stood at Rs -3 billion, an improvement of 139.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion, an improvement of 605.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 7 billion, an improvement of 250% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 1 billion from the Rs 330 million net cash flows seen during FY17.

ANANT RAJ 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	-1,272	-3,046	-
Cash Flow from Investing Activities	Rs m	-325	-2,295	-
Cash Flow from Financing Activities	Rs m	1,927	6,746	250.0%
Net Cash Flow	Rs m	330	1,406	326.1%

Current Valuations for ANANT RAJ LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.2, an decline from the EPS of Rs 2.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 34.0, stands at 18.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 3.6 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	15.8	16.3
TTM Earnings per share	Rs	2.6	2.2
Diluted earnings per share	Rs	2.6	2.2
Price to Cash Flow	x	10.6	11.6
TTM P/E ratio	x	18.0	18.0
Price / Book Value ratio	x	0.3	0.4
Market Cap	Rs m	10,033	10,035
Dividends per share (Unadj.)	Rs	0.2	0.2

Ratio Analysis for ANANT RAJ LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY18, from 2.2x 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 2.4x during FY18, from 2.6x 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 declined and down at 1.6% during FY18, from 1.8% 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 declined and down at 2.2% during FY18, from 2.8% 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 1.6% during FY18, from 1.9% 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	2.2	2.6
Debtors’ Days	Days	87	80
Interest coverage	x	2.6	2.4
Debt to equity ratio	x	0.3	0.5
Return on assets	%	1.9	1.6
Return on equity	%	1.8	1.6
Return on capital employed	%	2.8	2.2

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

ANANT RAJ LTD. Share Price Performance

Over the last one year, ANANT RAJ LTD. share price has moved up from Rs 58.1 to Rs 34.0, registering a loss of Rs 24.1 or around 41.4%.

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

(To know more, check out historical annual results for ANANT RAJ LTD. and quarterly results for ANANT RAJ LTD.)