ASHAPURA MINECHEM 2017-18 Annual Report Analysis

Sat, 31 Mar

ASHAPURA MINECHEM 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.

ASHAPURA MINECHEM Income Statement Analysis

• Operating income during the year fell 4.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 130.1% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1.4% in FY18 as against 4.3% in FY17.
• Depreciation charges decreased by 20.5% and finance costs increased by 14.1% YoY, respectively.
• Other income declined by 33.2% YoY.
• Net profit for the year grew by 101.5% YoY.
• Net profit margins during the year declined from 4.4% in FY17 to 9.2% in FY18.

ASHAPURA MINECHEM Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	8,329	7,944	-4.6%
Other income	Rs m	111	74	-33.2%
Total Revenues	Rs m	8,440	8,018	-5.0%
Gross profit	Rs m	357	-107	-130.1%
Depreciation	Rs m	484	385	-20.5%
Interest	Rs m	169	192	14.1%
Profit before tax	Rs m	-185	-611	229.6%
Tax	Rs m	177	120	-32.4%
Profit after tax	Rs m	-362	-730	101.5%
Gross profit margin	%	4.3	-1.4
Effective tax rate	%	-95.6	-19.6
Net profit margin	%	-4.4	-9.2

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ASHAPURA MINECHEM Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 11 billion as compared to Rs 13 billion in FY17, thereby witnessing an decrease of -19.4%.
• Long-term debt stood at Rs 1 billion as compared to Rs 630 million during FY17, a growth of 68.9%.
• Current assets fell 15% and stood at Rs 6 billion, while fixed assets fell 0% and stood at Rs 6 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 13 billion as against Rs 14 billion during FY17, thereby witnessing a fall of 8%.

ASHAPURA MINECHEM Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	-23	-472	1,917.8
Current Liabilities	Rs m	13,169	10,620	-19.4
Long-term Debt	Rs m	630	1,064	68.9
Total Liabilities	Rs m	13,942	12,766	-8.4
Current assets	Rs m	7,546	6,385	-15.4
Fixed Assets	Rs m	6,396	6,382	-0.2
Total Assets	Rs m	13,942	12,766	-8.4

ASHAPURA MINECHEM Cash Flow Statement Analysis

• ASHAPURA MINECHEM's cash flow from operating activities (CFO) during FY18 stood at Rs -179 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -203 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 363 million, an improvement of 185% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -19 million from the Rs -6 million net cash flows seen during FY17.

ASHAPURA MINECHEM 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	723	-179	-
Cash Flow from Investing Activities	Rs m	-300	-203	-
Cash Flow from Financing Activities	Rs m	-428	363	-
Net Cash Flow	Rs m	-6	-19	-

Current Valuations for ASHAPURA MINECHEM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -8.4, an decline from the EPS of Rs -4.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 66.4, stands at -14.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -12.9 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at -21.0 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	95.7	91.3
TTM Earnings per share	Rs	-4.2	-8.4
Diluted earnings per share	Rs	-4.0	-8.0
Price to Cash Flow	x	52.2	-21.0
TTM P/E ratio	x	3.2	-14.2
Price / Book Value ratio	x	-260.5	-15.4
Market Cap	Rs m	6,087	7,255
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ASHAPURA MINECHEM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY18, from 0.6x 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 -2.2x during FY18, from -0.1x 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 154.9% during FY18, from 1,551.0% 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 -70.7% 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 -4.2% during FY18, from -1.4% 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	0.6	0.6
Debtors’ Days	Days	1,026	946
Interest coverage	x	-0.1	-2.2
Debt to equity ratio	x	-26.9	-2.3
Return on assets	%	-1.4	-4.2
Return on equity	%	1,551.0	154.9
Return on capital employed	%	-2.8	-70.7

To see how ASHAPURA MINECHEM has performed over the last 5 years, please visit here.

ASHAPURA MINECHEM Share Price Performance

Over the last one year, ASHAPURA MINECHEM share price has moved down from Rs 69.4 to Rs 66.4, registering a loss of Rs 3.1 or around 4.4%.

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

(To know more, check out historical annual results for ASHAPURA MINECHEM and quarterly results for ASHAPURA MINECHEM)

Read: Latest Annual Report Analysis of ASHAPURA MINECHEM