ASHIANA HOUSING 2017-18 Annual Report Analysis

Sat, 31 Mar

ASHIANA 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.

ASHIANA HOUSING Income Statement Analysis

• Operating income during the year fell 15.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 40.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.5% in FY18 as against 24.8% in FY17.
• Depreciation charges decreased by 7.1% and finance costs increased by 34.2% YoY, respectively.
• Other income declined by 7.9% YoY.
• Net profit for the year declined by 42.9% YoY.
• Net profit margins during the year declined from 17.5% in FY17 to 11.9% in FY18.

ASHIANA HOUSING Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	3,823	3,213	-15.9%
Other income	Rs m	148	136	-7.9%
Total Revenues	Rs m	3,970	3,349	-15.6%
Gross profit	Rs m	949	563	-40.7%
Depreciation	Rs m	79	73	-7.1%
Interest	Rs m	104	139	34.2%
Profit before tax	Rs m	915	487	-46.7%
Tax	Rs m	245	105	-57.0%
Profit after tax	Rs m	670	382	-42.9%
Gross profit margin	%	24.8	17.5
Effective tax rate	%	26.7	21.6
Net profit margin	%	17.5	11.9

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ASHIANA HOUSING Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 4 billion as compared to Rs 4 billion in FY17, thereby witnessing an decrease of -4.5%.
• Long-term debt down at Rs 634 million as compared to Rs 781 million during FY17, a fall of 18.9%.
• Current assets fell 2% and stood at Rs 11 billion, while fixed assets rose 33% and stood at Rs 1 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 growth of 1%.

ASHIANA HOUSING Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	7,227	7,658	6.0
Current Liabilities	Rs m	4,264	4,073	-4.5
Long-term Debt	Rs m	781	634	-18.9
Total Liabilities	Rs m	12,581	12,660	0.6
Current assets	Rs m	11,503	11,223	-2.4
Fixed Assets	Rs m	1,078	1,438	33.3
Total Assets	Rs m	12,581	12,660	0.6

ASHIANA HOUSING Cash Flow Statement Analysis

• ASHIANA HOUSING's cash flow from operating activities (CFO) during FY18 stood at Rs -543 million, an improvement of 38.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 110 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 322 million, an improvement of 119% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -110 million from the Rs -484 million net cash flows seen during FY17.

ASHIANA 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	-393	-543	-
Cash Flow from Investing Activities	Rs m	-237	110	-
Cash Flow from Financing Activities	Rs m	147	322	119.3%
Net Cash Flow	Rs m	-484	-110	-

Current Valuations for ASHIANA HOUSING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.7, an decline from the EPS of Rs 6.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 153.9, stands at 52.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 4.9 times.
• The company's price to cash flow (P/CF) ratio stood at 45.1 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	37.3	31.4
TTM Earnings per share	Rs	6.5	3.7
Diluted earnings per share	Rs	6.5	3.7
Price to Cash Flow	x	31.1	45.1
TTM P/E ratio	x	19.6	52.2
Price / Book Value ratio	x	2.4	2.7
Market Cap	Rs m	17,697	20,540
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for ASHIANA HOUSING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY18, from 2.7x 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 4.5x during FY18, from 9.8x 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 5.0% during FY18, from 9.3% 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 7.6% during FY18, from 12.7% 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 4.1% during FY18, from 6.1% 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	2.7	2.8
Debtors’ Days	Days	228	289
Interest coverage	x	9.8	4.5
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.1	4.1
Return on equity	%	9.3	5.0
Return on capital employed	%	12.7	7.6

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

ASHIANA HOUSING Share Price Performance

Over the last one year, ASHIANA HOUSING share price has moved down from Rs 227.6 to Rs 153.9, registering a loss of Rs 73.7 or around 32.4%.

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 ASHIANA HOUSING and quarterly results for ASHIANA HOUSING)

Read: Latest Annual Report Analysis of ASHIANA HOUSING