ASHAPURA MINECHEM 2017-18 Annual Report Analysis

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ASHAPURA MINECHEM 2017-18 Annual Report Analysis
Tue, 15 Jan

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 91.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.4% in FY18 as against 4.1% 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 139.0% YoY.
  • Net profit margins during the year declined from 2.2% in FY17 to 5.6% 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 345 30 -91.3%
Depreciation Rs m 484 385 -20.5%
Interest Rs m 156 178 14.1%
Profit before tax Rs m -185 -460 148.0%
Tax Rs m 177 120 -32.4%
Profit after tax Rs m -189 -452 139.0%
Gross profit margin % 4.1 0.4
Effective tax rate % -95.6 -26.1
Net profit margin % -2.2 -5.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ASHAPURA MINECHEM Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 11 billion as compared to Rs 12 billion in FY17, thereby witnessing an decrease of -13.0%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 630 million during FY17, a growth of 68.9%.
  • Current assets fell 3% and stood at Rs 6 billion, while fixed assets fell 3% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 13 billion as against Rs 13 billion during FY17, thereby witnessing a fall of 1%.

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 1,915.4
 
Current Liabilities Rs m 12,212 10,620 -13.0
Long-term Debt Rs m 630 1,064 68.9
Total Liabilities Rs m 13,046 12,860 -1.4
 
Current assets Rs m 6,589 6,385 -3.1
Fixed Assets Rs m 3,405 3,292 -3.3
Total Assets Rs m 13,046 12,860 -1.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ASHAPURA MINECHEM

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.2, an decline from the EPS of Rs -2.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 29.6, stands at 1.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -15.4 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at -7.4 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 -2.2 -5.2
Diluted earnings per share Rs -2.2 -5.2
Price to Cash Flow x 21.1 -7.4
TTM P/E ratio x 1.3 1.3
Price / Book Value ratio x -260.2 -15.4
Market Cap Rs m 2,571 2,571
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ASHAPURA MINECHEM

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.6x during FY18, from 0.5x 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 -1.6x during FY18, from -0.2x 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 95.8% during FY18, from 807.5% 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 -25.9% during FY18, from 23.8% 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 -2.1% during FY18, from -0.3% 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 0.5 0.6
Debtors’ Days Days 103 95
Interest coverage x -0.2 -1.6
Debt to equity ratio x -26.9 -2.3
Return on assets % -0.3 -2.1
Return on equity % 807.5 95.8
Return on capital employed % 23.8 -25.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 up from Rs 108.5 to Rs 29.6, registering a loss of Rs 79.0 or around 72.8%.

Overall, the S&P BSE SENSEX is up 3.8% over the year.

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

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