ATUL AUTO 2017-18 Annual Report Analysis

Sat, 31 Mar

ATUL AUTO 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.

ATUL AUTO Income Statement Analysis

• Operating income during the year rose 29.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.4% in FY18 as against 14.2% in FY17.
• Depreciation charges decreased by 0.4% and finance costs decreased by 27.2% YoY, respectively.
• Other income grew by 7.0% YoY.
• Net profit for the year grew by 24.8% YoY.
• Net profit margins during the year declined from 8.9% in FY17 to 8.5% in FY18.

ATUL AUTO Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	4,187	5,426	29.6%
Other income	Rs m	26	27	7.0%
Total Revenues	Rs m	4,213	5,454	29.4%
Gross profit	Rs m	595	725	21.9%
Depreciation	Rs m	53	53	-0.4%
Interest	Rs m	6	4	-27.2%
Profit before tax	Rs m	562	696	23.9%
Tax	Rs m	191	232	22.0%
Profit after tax	Rs m	371	464	24.8%
Gross profit margin	%	14.2	13.4
Effective tax rate	%	33.9	33.4
Net profit margin	%	8.9	8.5

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ATUL AUTO Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 744 million as compared to Rs 547 million in FY17, thereby witnessing an increase of 36.0%.
• Current assets rose 32% and stood at Rs 2 billion, while fixed assets rose 9% and stood at Rs 1 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 3 billion as against Rs 2 billion during FY17, thereby witnessing a growth of 23%.

ATUL AUTO Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	1,840	2,208	20.0
Current Liabilities	Rs m	547	744	36.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,450	3,007	22.7
Current assets	Rs m	1,441	1,905	32.2
Fixed Assets	Rs m	1,009	1,102	9.2
Total Assets	Rs m	2,450	3,007	22.7

ATUL AUTO Cash Flow Statement Analysis

• ATUL AUTO's cash flow from operating activities (CFO) during FY18 stood at Rs 261 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -392 million, an improvement of 34.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -112 million, an improvement of 19% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -243 million from the Rs 283 million net cash flows seen during FY17.

ATUL AUTO 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	711	261	-63.3%
Cash Flow from Investing Activities	Rs m	-290	-392	-
Cash Flow from Financing Activities	Rs m	-139	-112	-
Net Cash Flow	Rs m	283	-243	-

Current Valuations for ATUL AUTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.1, an improvement from the EPS of Rs 16.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 441.6, stands at 21.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 19.2 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	190.9	247.3
TTM Earnings per share	Rs	16.9	21.1
Diluted earnings per share	Rs	16.9	21.1
Price to Cash Flow	x	24.1	19.2
TTM P/E ratio	x	27.4	21.0
Price / Book Value ratio	x	5.7	4.5
Market Cap	Rs m	10,530	9,894
Dividends per share (Unadj.)	Rs	4.3	5.3

Ratio Analysis for ATUL AUTO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY18, from 2.6x 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 improved and stood at 165.9x during FY18, from 97.9x 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 21.0% during FY18, from 20.2% 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 31.7% during FY18, from 30.9% 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 improved and stood at 15.6% during FY18, from 15.4% 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	2.6	2.6
Debtors’ Days	Days	411	526
Interest coverage	x	97.9	165.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.4	15.6
Return on equity	%	20.2	21.0
Return on capital employed	%	30.9	31.7

To see how ATUL AUTO has performed over the last 5 years, please visit here.

ATUL AUTO Share Price Performance

Over the last one year, ATUL AUTO share price has moved down from Rs 465.3 to Rs 441.6, registering a loss of Rs 23.8 or around 5.1%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 24,057.3 (down 0.1%). Over the last one year it has moved up from 22,012.7 to 24,057.3, a gain of 2,045 points (up 9.3%).

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

(To know more, check out historical annual results for ATUL AUTO and quarterly results for ATUL AUTO)

Read: Latest Annual Report Analysis of ATUL AUTO