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DELTA CORP 2017-18 Annual Report Analysis
Sat, 31 Mar

DELTA CORP 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.

DELTA CORP Income Statement Analysis

  • Operating income during the year rose 9.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 47.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 50.0% in FY18 as against 37.0% in FY17.
  • Depreciation charges increased by 2.8% and finance costs decreased by 70.3% YoY, respectively.
  • Other income grew by 478.2% YoY.
  • Net profit for the year grew by 110.2% YoY.
  • Net profit margins during the year grew from 16.3% in FY17 to 31.4% in FY18.

DELTA CORP Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 4,547 4,959 9.1%
Other income Rs m 50 286 478.2%
Total Revenues Rs m 4,596 5,245 14.1%
Gross profit Rs m 1,682 2,481 47.5%
Depreciation Rs m 361 371 2.8%
Interest Rs m 350 104 -70.3%
Profit before tax Rs m 1,020 2,292 124.6%
Tax Rs m 280 737 162.9%
Profit after tax Rs m 740 1,555 110.2%
Gross profit margin % 37.0 50.0
Effective tax rate % 27.5 32.2
Net profit margin % 16.3 31.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

DELTA CORP Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 3 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 6.6%.
  • Long-term debt down at Rs 13 million as compared to Rs 242 million during FY17, a fall of 94.8%.
  • Current assets rose 106% and stood at Rs 8 billion, while fixed assets rose 43% and stood at Rs 13 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 20 billion as against Rs 13 billion during FY17, thereby witnessing a growth of 62%.

DELTA CORP Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 9,180 16,768 82.6
 
Current Liabilities Rs m 3,259 3,475 6.6
Long-term Debt Rs m 242 13 -94.8
Total Liabilities Rs m 12,623 20,403 61.6
 
Current assets Rs m 3,772 7,776 106.1
Fixed Assets Rs m 8,850 12,627 42.7
Total Assets Rs m 12,623 20,403 61.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



DELTA CORP Cash Flow Statement Analysis

  • DELTA CORP's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 74.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -5 billion, an improvement of 608.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 3 billion, an improvement of 611% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 935 million from the Rs 70 million net cash flows seen during FY17.

DELTA CORP 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 1,309 2,285 74.6%
Cash Flow from Investing Activities Rs m -650 -4,605 -
Cash Flow from Financing Activities Rs m -589 3,011 -
Net Cash Flow Rs m 70 935 1,232.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for DELTA CORP

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.8, an improvement from the EPS of Rs 3.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 250.4, stands at 43.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 13.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 37.5 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 19.6 18.5
TTM Earnings per share Rs 3.2 5.8
Diluted earnings per share Rs 2.8 5.8
Price to Cash Flow x 44.0 37.5
TTM P/E ratio x 69.3 43.4
Price / Book Value ratio x 3.3 4.3
Market Cap Rs m 30,262 72,303
Dividends per share (Unadj.) Rs 0.4 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for DELTA CORP

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.2x during FY18, from 1.2x 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 improved and stood at 23.1x during FY18, from 3.9x 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 improved and stood at 9.3% during FY18, from 8.1% 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 14.3% during FY18, from 14.5% 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 8.1% during FY18, from 8.6% 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 1.2 2.2
Debtors’ Days Days 34 1
Interest coverage x 3.9 23.1
Debt to equity ratio x 0.0 0.0
Return on assets % 8.6 8.1
Return on equity % 8.1 9.3
Return on capital employed % 14.5 14.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how DELTA CORP has performed over the last 5 years, please visit here.

DELTA CORP Share Price Performance

Over the last one year, DELTA CORP share price has moved up from Rs 181.0 to Rs 250.4, registering a gain of Rs 69.4 or around 38.4%.

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

(To know more, check out historical annual results for DELTA CORP and quarterly results for DELTA CORP)

Annual Report FAQs

What is the current share price of DELTA CORP?

DELTA CORP currently trades at Rs 110.7 per share. You can check out the latest share price performance of DELTA CORP here...

What was the revenue of DELTA CORP in FY18? How does it compare to earlier years?

The revenues of DELTA CORP stood at Rs 5,245 m in FY18, which was up 14.1% compared to Rs 4,596 m reported in FY17.

DELTA CORP's revenue has grown from Rs 3,822 m in FY16 to Rs 5,245 m in FY18.

Over the past 3 years, the revenue of DELTA CORP has grown at a CAGR of 17.2%.

What was the net profit of DELTA CORP in FY18? How does it compare to earlier years?

The net profit of DELTA CORP stood at Rs 1,555 m in FY18, which was up 110.2% compared to Rs 740 m reported in FY17.

This compares to a net profit of Rs 406 m in FY16.

Over the past 3 years, DELTA CORP net profit has grown at a CAGR of 95.8%.

What does the cash flow statement of DELTA CORP reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of DELTA CORP reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 2,285 m as compared to Rs 1,309 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -4,605 m as compared to Rs -650 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs 3,011 m as compared to Rs -589 m in FY17.

Here's the cash flow statement of DELTA CORP for the past 3 years.

(Rs m)FY16FY17FY18
From Operations1,1721,3092,285
From Investments-173-650-4,605
From Financial Activity-977-5893,011
Net Cashflow2270935

What does the Key Ratio analysis of DELTA CORP reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of DELTA CORP reveals:

  • Operating profit margins witnessed a fall and down at 50.0% in FY18 as against 37.0% in FY17.
  • Net profit margins grew from 16.3% in FY17 to 31.4% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.0 in FY17.

Here's the ratio/financial analysis of DELTA CORP for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)34.937.050.0
Net Profit Margin (%)10.816.331.4
Debt to Equity Ratio (x)0.20.00.0

Read: Latest Annual Report Analysis of DELTA CORP

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