INEOS STYROLUTION INDIA 2017-18 Annual Report Analysis

Sat, 31 Mar

INEOS STYROLUTION INDIA 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.

INEOS STYROLUTION INDIA Income Statement Analysis

• Operating income during the year rose 42.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.4% in FY18 as against 10.4% in FY17.
• Depreciation charges increased by 0.4% and finance costs increased by 0.1% YoY, respectively.
• Other income grew by 70.0% YoY.
• Net profit for the year declined by 4.4% YoY.
• Net profit margins during the year declined from 5.3% in FY17 to 3.6% in FY18.

INEOS STYROLUTION INDIA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	12,955	18,400	42.0%
Other income	Rs m	41	69	70.0%
Total Revenues	Rs m	12,996	18,469	42.1%
Gross profit	Rs m	1,352	1,353	0.1%
Depreciation	Rs m	253	254	0.4%
Interest	Rs m	137	137	0.1%
Profit before tax	Rs m	1,003	1,031	2.8%
Tax	Rs m	310	369	19.0%
Profit after tax	Rs m	693	662	-4.4%
Gross profit margin	%	10.4	7.4
Effective tax rate	%	30.9	35.8
Net profit margin	%	5.3	3.6

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INEOS STYROLUTION INDIA Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 4 billion as compared to Rs 5 billion in FY17, thereby witnessing an decrease of -13.9%.
• Long-term debt stood at Rs 230 million as compared to Rs 0 million during FY17, a fall of 0.0%.
• Current assets fell 12% and stood at Rs 7 billion, while fixed assets rose 46% and stood at Rs 4 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 11 billion as against Rs 11 billion during FY17, thereby witnessing a growth of 3%.

INEOS STYROLUTION INDIA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	5,870	6,445	9.8
Current Liabilities	Rs m	4,581	3,944	-13.9
Long-term Debt	Rs m	0	230	0.0
Total Liabilities	Rs m	10,809	11,096	2.7
Current assets	Rs m	8,041	7,055	-12.3
Fixed Assets	Rs m	2,768	4,041	46.0
Total Assets	Rs m	10,809	11,096	2.7

INEOS STYROLUTION INDIA Cash Flow Statement Analysis

• INEOS STYROLUTION INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -212 million, an improvement of 41.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 243 million from the Rs -87 million net cash flows seen during FY17.

INEOS STYROLUTION INDIA 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	-156	1,730	-
Cash Flow from Investing Activities	Rs m	-151	-212	-
Cash Flow from Financing Activities	Rs m	219	-1,275	-
Net Cash Flow	Rs m	-87	243	-

Current Valuations for INEOS STYROLUTION INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 37.6, an decline from the EPS of Rs 39.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 863.1, stands at 22.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 17.8 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	736.5	1,046.0
TTM Earnings per share	Rs	39.4	37.6
Diluted earnings per share	Rs	39.4	37.7
Price to Cash Flow	x	12.8	17.8
TTM P/E ratio	x	17.5	22.9
Price / Book Value ratio	x	1.9	2.5
Market Cap	Rs m	10,920	16,283
Dividends per share (Unadj.)	Rs	4.0	4.0

Ratio Analysis for INEOS STYROLUTION INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY18, from 1.8x 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 8.5x during FY18, from 8.3x 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 10.3% during FY18, from 11.8% 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 17.5% during FY18, from 19.4% 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 7.2% during FY18, from 7.7% 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	1.8	1.8
Debtors’ Days	Days	627	486
Interest coverage	x	8.3	8.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.7	7.2
Return on equity	%	11.8	10.3
Return on capital employed	%	19.4	17.5

To see how INEOS STYROLUTION INDIA has performed over the last 5 years, please visit here.

INEOS STYROLUTION INDIA Share Price Performance

Over the last one year, INEOS STYROLUTION INDIA share price has moved up from Rs 688.4 to Rs 863.1, registering a gain of Rs 174.8 or around 25.4%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,614.4 (up 0.1%). Over the last one year it has moved up from 13,563.6 to 14,614.4, a gain of 1,051 points (up 7.7%).

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

(To know more, check out historical annual results for INEOS STYROLUTION INDIA and quarterly results for INEOS STYROLUTION INDIA)

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