ANSAL HOUSING 2017-18 Annual Report Analysis

Sat, 31 Mar

ANSAL HOUSING 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.

ANSAL HOUSING Income Statement Analysis

• Operating income during the year fell 20.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 39.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.4% in FY18 as against 16.3% in FY17.
• Depreciation charges decreased by 23.1% and finance costs increased by 15.5% YoY, respectively.
• Other income grew by 43.9% YoY.
• Net profit for the year grew by 486.3% YoY.
• Net profit margins during the year declined from 1.0% in FY17 to 7.7% in FY18.

ANSAL HOUSING Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	3,134	2,492	-20.5%
Other income	Rs m	182	262	43.9%
Total Revenues	Rs m	3,316	2,754	-16.9%
Gross profit	Rs m	509	309	-39.3%
Depreciation	Rs m	21	16	-23.1%
Interest	Rs m	716	827	15.5%
Profit before tax	Rs m	-45	-272	498.5%
Tax	Rs m	-13	-81	528.8%
Profit after tax	Rs m	-33	-191	486.3%
Gross profit margin	%	16.3	12.4
Effective tax rate	%	28.4	29.9
Net profit margin	%	-1.0	-7.7

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ANSAL HOUSING Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 10 billion as compared to Rs 9 billion in FY17, thereby witnessing an increase of 7.5%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY17, a fall of 9.2%.
• Current assets rose 0% and stood at Rs 18 billion, while fixed assets fell 2% and stood at Rs 2 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 20 billion as against Rs 20 billion during FY17, thereby witnessing a growth of 0%.

ANSAL HOUSING Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	4,392	4,205	-4.3
Current Liabilities	Rs m	9,395	10,100	7.5
Long-term Debt	Rs m	4,222	3,835	-9.2
Total Liabilities	Rs m	19,893	19,928	0.2
Current assets	Rs m	17,979	18,053	0.4
Fixed Assets	Rs m	1,914	1,876	-2.0
Total Assets	Rs m	19,893	19,928	0.2

ANSAL HOUSING Cash Flow Statement Analysis

• ANSAL HOUSING's cash flow from operating activities (CFO) during FY18 stood at Rs 718 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 76 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -793 million, an improvement of 42% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 2 million from the Rs -11 million net cash flows seen during FY17.

ANSAL HOUSING 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	1,224	718	-41.3%
Cash Flow from Investing Activities	Rs m	121	76	-37.0%
Cash Flow from Financing Activities	Rs m	-1,356	-793	-
Net Cash Flow	Rs m	-11	2	-

Current Valuations for ANSAL HOUSING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.2, an decline from the EPS of Rs -0.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 19.9, stands at -5.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at -9.3 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	52.8	42.0
TTM Earnings per share	Rs	-0.5	-3.2
Diluted earnings per share	Rs	-0.5	-3.2
Price to Cash Flow	x	-128.2	-9.3
TTM P/E ratio	x	-26.5	-5.5
Price / Book Value ratio	x	0.3	0.4
Market Cap	Rs m	1,418	1,630
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ANSAL HOUSING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY18, from 1.9x 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 0.7x during FY18, from 0.9x 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 -4.5% during FY18, from -0.7% 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 6.9% during FY18, from 7.8% 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 3.2% during FY18, from 3.4% 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	1.9	1.8
Debtors’ Days	Days	859	1,333
Interest coverage	x	0.9	0.7
Debt to equity ratio	x	1.0	0.9
Return on assets	%	3.4	3.2
Return on equity	%	-0.7	-4.5
Return on capital employed	%	7.8	6.9

To see how ANSAL HOUSING has performed over the last 5 years, please visit here.

ANSAL HOUSING Share Price Performance

Over the last one year, ANSAL HOUSING share price has moved down from Rs 24.3 to Rs 19.9, registering a loss of Rs 4.5 or around 18.3%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,229.9 (down 1.1%). Over the last one year it has moved up from 1,600.0 to 2,229.9, a gain of 630 points (up 39.4%).

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

(To know more, check out historical annual results for ANSAL HOUSING and quarterly results for ANSAL HOUSING)

Read: Latest Annual Report Analysis of ANSAL HOUSING