ATLANTA LTD 2017-18 Annual Report Analysis

Thu, 28 Feb

ATLANTA LTD 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 LTD 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 62.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 27.4% in FY18 as against 52.1% in FY17.
• Depreciation charges decreased by 35.0% and finance costs increased by 84.5% YoY, respectively.
• Other income grew by 66.5% YoY.
• Net profit for the year declined by 309.9% YoY.
• Net profit margins during the year declined from 11.1% in FY17 to 31.3% in FY18.

ATLANTA LTD Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	2,629	1,897	-27.9%
Other income	Rs m	67	111	66.5%
Total Revenues	Rs m	2,696	2,007	-25.5%
Gross profit	Rs m	1,371	520	-62.1%
Depreciation	Rs m	515	335	-35.0%
Interest	Rs m	406	749	84.5%
Profit before tax	Rs m	516	-454	-187.8%
Tax	Rs m	218	-124	-157.2%
Profit after tax	Rs m	299	-627	-309.9%
Gross profit margin	%	52.1	27.4
Effective tax rate	%	42.1	27.4
Net profit margin	%	11.1	-31.3

ATLANTA LTD Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 4 billion as compared to Rs 7 billion in FY17, thereby witnessing an decrease of -46.3%.
• Long-term debt down at Rs 9 billion as compared to Rs 9 billion during FY17, a fall of 4.0%.
• Current assets fell 7% and stood at Rs 3 billion, while fixed assets rose 25% and stood at Rs 437 million in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 17 billion as against Rs 17 billion during FY17, thereby witnessing a fall of 3%.

ATLANTA LTD Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	7,427	3,931	-47.1
Current Liabilities	Rs m	6,674	3,584	-46.3
Long-term Debt	Rs m	8,920	8,565	-4.0
Total Liabilities	Rs m	17,469	16,974	-2.8
Current assets	Rs m	3,027	2,817	-6.9
Fixed Assets	Rs m	350	437	24.9
Total Assets	Rs m	17,469	16,974	-2.8

ATLANTA LTD Cash Flow Statement Analysis

• ATLANTA LTD'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 1,487% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 5 million from the Rs -40 million net cash flows seen during FY17.

ATLANTA LTD 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	-40	5	-

Current Valuations for ATLANTA LTD

• 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 16.4, stands at -2.7 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 4.4 times.
• The company's price to cash flow (P/CF) ratio stood at -4.6 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	1.6	-4.6
TTM P/E ratio	x	-2.7	-2.7
Price / Book Value ratio	x	0.7	2.1
Market Cap	Rs m	1,337	1,337
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for ATLANTA LTD

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x 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 0.4x during FY18, from 2.3x 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 4.0% 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 0.0% during FY18, from 5.6% 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 0.7% during FY18, from 4.0% 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	0.8
Debtors’ Days	Days	160	341
Interest coverage	x	2.3	0.4
Debt to equity ratio	x	1.2	2.2
Return on assets	%	4.0	0.7
Return on equity	%	4.0	-16.0
Return on capital employed	%	5.6	0.0

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

ATLANTA LTD Share Price Performance

Over the last one year, ATLANTA LTD share price has moved up from Rs 93.8 to Rs 16.4, registering a loss of Rs 77.4 or around 82.5%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 1,780.7 (up 0.2%). Over the last one year it has moved down from 2,468.3 to 1,780.7, a loss of 688 points (down 27.9%).

Overall, the S&P BSE SENSEX is up 4.9% over the year.

(To know more, check out historical annual results for ATLANTA LTD and quarterly results for ATLANTA LTD)