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ASAHI INDIA 2017-18 Annual Report Analysis
Sat, 31 Mar

ASAHI 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.

ASAHI INDIA Income Statement Analysis

  • Operating income during the year rose 22.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 11.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.7% in FY18 as against 19.5% in FY17.
  • Depreciation charges increased by 19.7% and finance costs decreased by 14.2% YoY, respectively.
  • Other income declined by 14.9% YoY.
  • Net profit for the year grew by 17.8% YoY.
  • Net profit margins during the year declined from 6.9% in FY17 to 6.6% in FY18.

ASAHI INDIA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 21,203 25,869 22.0%
Other income Rs m 286 243 -14.9%
Total Revenues Rs m 21,489 26,113 21.5%
Gross profit Rs m 4,135 4,589 11.0%
Depreciation Rs m 792 948 19.7%
Interest Rs m 1,442 1,237 -14.2%
Profit before tax Rs m 2,187 2,647 21.0%
Tax Rs m 730 930 27.4%
Profit after tax Rs m 1,458 1,717 17.8%
Gross profit margin % 19.5 17.7
Effective tax rate % 33.4 35.1
Net profit margin % 6.9 6.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ASAHI INDIA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 12 billion as compared to Rs 9 billion in FY17, thereby witnessing an increase of 28.2%.
  • Long-term debt stood at Rs 9 billion as compared to Rs 8 billion during FY17, a growth of 17.1%.
  • Current assets rose 13% and stood at Rs 11 billion, while fixed assets rose 21% and stood at Rs 21 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 32 billion as against Rs 27 billion during FY17, thereby witnessing a growth of 18%.

ASAHI INDIA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 9,267 10,756 16.1
 
Current Liabilities Rs m 9,276 11,894 28.2
Long-term Debt Rs m 7,781 9,109 17.1
Total Liabilities Rs m 26,964 31,797 17.9
 
Current assets Rs m 9,581 10,846 13.2
Fixed Assets Rs m 17,383 20,951 20.5
Total Assets Rs m 26,964 31,797 17.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ASAHI INDIA Cash Flow Statement Analysis

  • ASAHI INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion, an improvement of 7.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -4 billion, an improvement of 135.5% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -12 million, an improvement of 100% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 5 million from the Rs -215 million net cash flows seen during FY17.

ASAHI 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 4,180 4,493 7.5%
Cash Flow from Investing Activities Rs m -1,901 -4,475 -
Cash Flow from Financing Activities Rs m -2,494 -12 -
Net Cash Flow Rs m -215 5 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ASAHI INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.1, an improvement from the EPS of Rs 6.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 332.5, stands at 44.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.5 times, while the price to sales ratio stands at 3.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 29.8 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 87.2 106.4
TTM Earnings per share Rs 6.0 7.1
Diluted earnings per share Rs 6.0 7.1
Price to Cash Flow x 23.4 29.8
TTM P/E ratio x 40.2 44.8
Price / Book Value ratio x 4.8 7.4
Market Cap Rs m 44,340 79,284
Dividends per share (Unadj.) Rs 1.0 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ASAHI INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.9x 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 3.1x during FY18, from 2.5x 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 16.0% during FY18, from 15.7% 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 19.6% during FY18, from 21.3% 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 9.3% during FY18, from 10.8% 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 0.9
Debtors’ Days Days 415 455
Interest coverage x 2.5 3.1
Debt to equity ratio x 0.8 0.8
Return on assets % 10.8 9.3
Return on equity % 15.7 16.0
Return on capital employed % 21.3 19.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how ASAHI INDIA has performed over the last 5 years, please visit here.

ASAHI INDIA Share Price Performance

Over the last one year, ASAHI INDIA share price has moved up from Rs 217.0 to Rs 332.5, registering a gain of Rs 115.5 or around 53.2%.

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

(To know more, check out historical annual results for ASAHI INDIA and quarterly results for ASAHI INDIA)

Annual Report FAQs

What is the current share price of ASAHI INDIA?

ASAHI INDIA currently trades at Rs 537.8 per share. You can check out the latest share price performance of ASAHI INDIA here...

What was the revenue of ASAHI INDIA in FY18? How does it compare to earlier years?

The revenues of ASAHI INDIA stood at Rs 26,113 m in FY18, which was up 21.5% compared to Rs 21,489 m reported in FY17.

ASAHI INDIA's revenue has grown from Rs 19,904 m in FY14 to Rs 26,113 m in FY18.

Over the past 5 years, the revenue of ASAHI INDIA has grown at a CAGR of 7.0%.

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

The net profit of ASAHI INDIA stood at Rs 1,717 m in FY18, which was up 17.8% compared to Rs 1,458 m reported in FY17.

This compares to a net profit of Rs 820 m in FY16 and a net profit of Rs 381 m in FY15.

Over the past 5 years, ASAHI INDIA net profit has grown at a CAGR of NaN%.

What does the cash flow statement of ASAHI INDIA 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 ASAHI INDIA reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 4,493 m as compared to Rs 4,180 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -4,475 m as compared to Rs -1,901 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -12 m as compared to Rs -2,494 m in FY17.

Here's the cash flow statement of ASAHI INDIA for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations1014982,3024,1804,493
From Investments-915-692-1,239-1,901-4,475
From Financial Activity466237-996-2,494-12
Net Cashflow-3494367-2155

What does the Key Ratio analysis of ASAHI INDIA 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 ASAHI INDIA reveals:

  • Operating profit margins witnessed a fall and stood at 17.7% in FY18 as against 19.5% in FY17.
  • Net profit margins declined from 6.9% in FY17 to 6.6% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.8 as compared to 0.8 in FY17.

Here's the ratio/financial analysis of ASAHI INDIA for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)11.515.819.119.517.7
Net Profit Margin (%)-2.52.04.06.96.6
Debt to Equity Ratio (x)1.72.91.90.80.8

Read: Latest Annual Report Analysis of ASAHI INDIA

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