BANNARI AMMAN 2017-18 Annual Report Analysis

Sat, 31 Mar

BANNARI AMMAN 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.

BANNARI AMMAN Income Statement Analysis

• Operating income during the year fell 12.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 39.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.4% in FY18 as against 20.8% in FY17.
• Depreciation charges increased by 0.2% and finance costs decreased by 65.2% YoY, respectively.
• Other income declined by 2.6% YoY.
• Net profit for the year declined by 39.9% YoY.
• Net profit margins during the year declined from 8.7% in FY17 to 6.0% in FY18.

BANNARI AMMAN Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	16,718	14,648	-12.4%
Other income	Rs m	57	56	-2.6%
Total Revenues	Rs m	16,775	14,704	-12.3%
Gross profit	Rs m	3,477	2,102	-39.5%
Depreciation	Rs m	695	696	0.2%
Interest	Rs m	971	338	-65.2%
Profit before tax	Rs m	1,869	1,124	-39.9%
Tax	Rs m	417	251	-39.8%
Profit after tax	Rs m	1,452	873	-39.9%
Gross profit margin	%	20.8	14.4
Effective tax rate	%	22.3	22.3
Net profit margin	%	8.7	6.0

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BANNARI AMMAN Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 4 billion as compared to Rs 8 billion in FY17, thereby witnessing an decrease of -51.8%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY17, a fall of 40.2%.
• Current assets fell 40% and stood at Rs 7 billion, while fixed assets fell 13% and stood at Rs 11 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 18 billion as against Rs 24 billion during FY17, thereby witnessing a fall of 26%.

BANNARI AMMAN Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	10,671	11,356	6.4
Current Liabilities	Rs m	7,808	3,760	-51.8
Long-term Debt	Rs m	4,444	2,658	-40.2
Total Liabilities	Rs m	24,019	17,862	-25.6
Current assets	Rs m	11,185	6,683	-40.3
Fixed Assets	Rs m	12,834	11,179	-12.9
Total Assets	Rs m	24,019	17,862	-25.6

BANNARI AMMAN Cash Flow Statement Analysis

• BANNARI AMMAN's cash flow from operating activities (CFO) during FY18 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -157 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -6 billion, an improvement of 4% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -60 million from the Rs -113 million net cash flows seen during FY17.

BANNARI AMMAN 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	6,447	5,884	-8.7%
Cash Flow from Investing Activities	Rs m	-524	-157	-
Cash Flow from Financing Activities	Rs m	-6,036	-5,787	-
Net Cash Flow	Rs m	-113	-60	-

Current Valuations for BANNARI AMMAN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 69.6, an decline from the EPS of Rs 115.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,725.0, stands at 24.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 16.8 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	1,333.2	1,168.1
TTM Earnings per share	Rs	115.8	69.6
Diluted earnings per share	Rs	115.8	69.6
Price to Cash Flow	x	11.3	16.8
TTM P/E ratio	x	17.0	24.8
Price / Book Value ratio	x	2.2	2.3
Market Cap	Rs m	23,481	26,396
Dividends per share (Unadj.)	Rs	12.5	10.0

Ratio Analysis for BANNARI AMMAN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY18, from 1.4x 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 4.3x during FY18, from 2.9x 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 declined and down at 7.7% during FY18, from 13.6% 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 declined and down at 10.4% during FY18, from 18.8% 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 6.8% 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	1.4	1.8
Debtors’ Days	Days	254	168
Interest coverage	x	2.9	4.3
Debt to equity ratio	x	0.4	0.2
Return on assets	%	10.1	6.8
Return on equity	%	13.6	7.7
Return on capital employed	%	18.8	10.4

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

BANNARI AMMAN Share Price Performance

Over the last one year, BANNARI AMMAN share price has moved down from Rs 1,940.1 to Rs 1,725.0, registering a loss of Rs 215.1 or around 11.1%.

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

(To know more, check out historical annual results for BANNARI AMMAN and quarterly results for BANNARI AMMAN)