BALMER LAWRIE 2017-18 Annual Report Analysis

Sat, 31 Mar

BALMER LAWRIE 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.

BALMER LAWRIE Income Statement Analysis

• Operating income during the year rose 6.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.2% in FY18 as against 13.2% in FY17.
• Depreciation charges increased by 4.0% and finance costs decreased by 6.8% YoY, respectively.
• Other income grew by 42.5% YoY.
• Net profit for the year grew by 7.5% YoY.
• Net profit margins during the year grew from 9.8% in FY17 to 9.8% in FY18.

BALMER LAWRIE Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	15,846	16,905	6.7%
Other income	Rs m	581	828	42.5%
Total Revenues	Rs m	16,427	17,732	7.9%
Gross profit	Rs m	2,084	1,891	-9.3%
Depreciation	Rs m	259	269	4.0%
Interest	Rs m	45	42	-6.8%
Profit before tax	Rs m	2,360	2,407	2.0%
Tax	Rs m	812	743	-8.5%
Profit after tax	Rs m	1,548	1,664	7.5%
Gross profit margin	%	13.2	11.2
Effective tax rate	%	34.4	30.9
Net profit margin	%	9.8	9.8

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BALMER LAWRIE Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 6 billion as compared to Rs 6 billion in FY17, thereby witnessing an decrease of -2.1%.
• Long-term debt stood at Rs 112 million as compared to Rs 0 million during FY17, a fall of 0.0%.
• Current assets rose 0% and stood at Rs 13 billion, while fixed assets rose 20% and stood at Rs 9 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 22 billion as against Rs 20 billion during FY17, thereby witnessing a growth of 8%.

BALMER LAWRIE Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	13,614	14,569	7.0
Current Liabilities	Rs m	5,805	5,685	-2.1
Long-term Debt	Rs m	0	112	0.0
Total Liabilities	Rs m	20,299	21,909	7.9
Current assets	Rs m	12,522	12,584	0.5
Fixed Assets	Rs m	7,778	9,325	19.9
Total Assets	Rs m	20,299	21,909	7.9

BALMER LAWRIE Cash Flow Statement Analysis

• BALMER LAWRIE's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -193 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -858 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 237 million from the Rs -93 million net cash flows seen during FY17.

BALMER LAWRIE 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	1,815	1,287	-29.1%
Cash Flow from Investing Activities	Rs m	-1,175	-193	-
Cash Flow from Financing Activities	Rs m	-732	-858	-
Net Cash Flow	Rs m	-93	237	-

Current Valuations for BALMER LAWRIE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.6, an improvement from the EPS of Rs 13.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 217.2, stands at 20.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 15.1 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	139.0	148.3
TTM Earnings per share	Rs	13.6	14.6
Diluted earnings per share	Rs	9.1	9.7
Price to Cash Flow	x	22.3	15.1
TTM P/E ratio	x	23.6	20.1
Price / Book Value ratio	x	5.6	2.0
Market Cap	Rs m	76,832	29,264
Dividends per share (Unadj.)	Rs	7.0	10.0

Ratio Analysis for BALMER LAWRIE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY18, from 2.2x 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 57.9x during FY18, from 53.0x 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 11.4% during FY18, from 11.4% 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 16.7% during FY18, from 17.7% 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 7.8% during FY18, from 7.8% 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	2.2	2.2
Debtors’ Days	Days	649	583
Interest coverage	x	53.0	57.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.8	7.8
Return on equity	%	11.4	11.4
Return on capital employed	%	17.7	16.7

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

BALMER LAWRIE Share Price Performance

Over the last one year, BALMER LAWRIE share price has moved down from Rs 235.6 to Rs 217.2, registering a loss of Rs 18.4 or around 7.8%.

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

(To know more, check out historical annual results for BALMER LAWRIE and quarterly results for BALMER LAWRIE)

Read: Latest Annual Report Analysis of BALMER LAWRIE