ATLANTA 2017-18 Annual Report Analysis

Sat, 31 Mar

ATLANTA 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.

ATLANTA Income Statement Analysis

• Operating income during the year fell 27.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 82.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.7% in FY18 as against 52.7% in FY17.
• Depreciation charges decreased by 35.0% and finance costs increased by 72.2% YoY, respectively.
• Other income declined by 1.9% YoY.
• Net profit for the year declined by 309.9% YoY.
• Net profit margins during the year declined from 11.4% in FY17 to 33.1% in FY18.

ATLANTA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	2,629	1,896	-27.9%
Other income	Rs m	67	65	-1.9%
Total Revenues	Rs m	2,696	1,962	-27.2%
Gross profit	Rs m	1,384	241	-82.6%
Depreciation	Rs m	515	335	-35.0%
Interest	Rs m	420	723	72.2%
Profit before tax	Rs m	516	-752	-245.6%
Tax	Rs m	218	-124	-157.2%
Profit after tax	Rs m	299	-627	-309.9%
Gross profit margin	%	52.7	12.7
Effective tax rate	%	42.1	16.6
Net profit margin	%	11.4	-33.1

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ATLANTA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 3 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 10.4%.
• Long-term debt down at Rs 9 billion as compared to Rs 9 billion during FY17, a fall of 4.0%.
• Current assets rose 5% and stood at Rs 3 billion, while fixed assets fell 8% and stood at Rs 13 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 16 billion as against Rs 17 billion during FY17, thereby witnessing a fall of 6%.

ATLANTA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	4,651	3,920	-15.7
Current Liabilities	Rs m	2,923	3,226	10.4
Long-term Debt	Rs m	8,920	8,565	-4.0
Total Liabilities	Rs m	17,100	16,047	-6.2
Current assets	Rs m	2,495	2,626	5.3
Fixed Assets	Rs m	14,605	13,420	-8.1
Total Assets	Rs m	17,100	16,047	-6.2

ATLANTA Cash Flow Statement Analysis

• ATLANTA's cash flow from operating activities (CFO) during FY18 stood at Rs -186 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -158 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 349 million, an improvement of 1,485% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 5 million from the Rs -39 million net cash flows seen during FY17.

ATLANTA 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	1,013	-186	-
Cash Flow from Investing Activities	Rs m	-1,028	-158	-
Cash Flow from Financing Activities	Rs m	-25	349	-
Net Cash Flow	Rs m	-39	5	-

Current Valuations for ATLANTA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.7, an decline from the EPS of Rs 3.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 75.0, stands at 38.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at -28.6 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	32.3	23.3
TTM Earnings per share	Rs	3.7	-7.7
Diluted earnings per share	Rs	3.7	-7.7
Price to Cash Flow	x	8.1	-28.6
TTM P/E ratio	x	8.0	38.6
Price / Book Value ratio	x	1.1	2.1
Market Cap	Rs m	4,941	8,360
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for ATLANTA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY18, from 0.9x 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 0.0x during FY18, from 2.2x 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 -16.0% during FY18, from 6.4% 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 -0.2% during FY18, from 6.9% 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 0.6% during FY18, from 4.2% 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	0.9	0.8
Debtors’ Days	Days	160,233,576	311,546,585
Interest coverage	x	2.2	0.0
Debt to equity ratio	x	1.9	2.2
Return on assets	%	4.2	0.6
Return on equity	%	6.4	-16.0
Return on capital employed	%	6.9	-0.2

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

ATLANTA Share Price Performance

Over the last one year, ATLANTA share price has moved down from Rs 80.9 to Rs 75.0, registering a loss of Rs 6.0 or around 7.4%.

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 ATLANTA and quarterly results for ATLANTA)

Read: Latest Annual Report Analysis of ATLANTA