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ASHOK LEYLAND 2017-18 Annual Report Analysis

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ASHOK LEYLAND 2017-18 Annual Report Analysis
Tue, 21 Aug

ASHOK LEYLAND 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.

ASHOK LEYLAND Income Statement Analysis

  • Operating income during the year rose 29.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 29.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.3% in FY18 as against 14.4% in FY17.
  • Depreciation charges and finance costs increased by 12.8% YoY and 17.4% YoY, respectively.
  • Other income grew by 52.9% YoY.
  • Net profit for the year grew by 11.6% YoY.
  • Net profit margins during the year declined from 7.1% in FY17 to 6.1% in FY18.

ASHOK LEYLAND Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 228,710 296,196 29.5%
Other income Rs m 1,307 1,999 52.9%
Total Revenues Rs m 230,017 298,195 29.6%
Gross profit Rs m 32,939 42,484 29.0%
Depreciation Rs m 5,728 6,459 12.8%
Interest Rs m 10,488 12,317 17.4%
Profit before tax Rs m 18,030 25,707 42.6%
Tax Rs m 1,961 7,511 283.0%
Profit after tax Rs m 16,371 18,265 11.6%
Gross profit margin % 14.4 14.3
Effective tax rate % 10.9 29.2
Net profit margin % 7.1 6.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ASHOK LEYLAND Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 142 billion as compared to Rs 104 billion in FY17, thereby witnessing an increase of 36.5%.
  • Long-term debt stood at Rs 102 billion as compared to Rs 89 billion during FY17, a growth of 15.2%.
  • Current assets rose 31% and stood at Rs 144 billion, while fixed assets rose 1% and stood at Rs 53 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 335 billion as against Rs 267 billion during FY17, thereby witnessing a growth of 26%.

ASHOK LEYLAND Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 63,929 74,206 16.1
 
Current Liabilities Rs m 103,992 141,915 36.5
Long-term Debt Rs m 88,764 102,281 15.2
Total Liabilities Rs m 266,683 335,180 25.7
 
Current assets Rs m 110,396 144,216 30.6
Fixed Assets Rs m 52,682 53,206 1.0
Total Assets Rs m 266,683 335,180 25.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ASHOK LEYLAND Cash Flow Statement Analysis

  • ASHOK LEYLAND's cash flow from operating activities (CFO) during FY18 stood at Rs 15 billion, an improvement of 446.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -32 billion, an improvement of 86.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 19 billion, an improvement of 156% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 2 billion from the Rs -7 billion net cash flows seen during FY17.

ASHOK LEYLAND 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 2,701 14,773 446.9%
Cash Flow from Investing Activities Rs m -16,949 -31,662 -
Cash Flow from Financing Activities Rs m 7,377 18,906 156.3%
Net Cash Flow Rs m -6,681 2,049 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ASHOK LEYLAND

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.2, an improvement from the EPS of Rs 5.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 128.5, stands at 23.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 1.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.8 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 80.4 101.2
TTM Earnings per share Rs 5.8 6.2
Diluted earnings per share Rs 5.8 6.4
Price to Cash Flow x 16.6 14.8
TTM P/E ratio x 23.1 23.1
Price / Book Value ratio x 4.1 4.6
Market Cap Rs m 365,553 365,553
Dividends per share (Unadj.) Rs 1.6 2.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ASHOK LEYLAND

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY18, from 1.1x 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 3.1x during FY18, from 2.7x 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 24.6% during FY18, from 25.6% 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 improved and stood at 21.6% during FY18, from 18.9% 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 9.1% during FY18, from 10.1% 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 1.1 1.0
Debtors’ Days Days 20 14
Interest coverage x 2.7 3.1
Debt to equity ratio x 1.4 1.4
Return on assets % 10.1 9.1
Return on equity % 25.6 24.6
Return on capital employed % 18.9 21.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how ASHOK LEYLAND has performed over the last 5 years, please visit here.

ASHOK LEYLAND Share Price Performance

Over the last one year, ASHOK LEYLAND share price has moved up from Rs 102.4 to Rs 128.5, registering a gain of Rs 26.1 or around 25.5%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 24,676.8 (up 0.2%). Over the last one year it has moved up from 23,544.3 to 24,676.8, a gain of 1,133 points (up 4.8%).

Overall, the S&P BSE SENSEX is up 22.5% over the year.

(To know more, check out historical annual results for ASHOK LEYLAND and quarterly results for ASHOK LEYLAND)

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