BIRLA CABLE 2017-18 Annual Report Analysis

Sat, 31 Mar

BIRLA CABLE 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.

BIRLA CABLE Income Statement Analysis

• Operating income during the year rose 66.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 155.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.7% in FY18 as against 7.0% in FY17.
• Depreciation charges decreased by 0.7% and finance costs increased by 11.5% YoY, respectively.
• Other income declined by 67.1% YoY.
• Net profit for the year grew by 383.8% YoY.
• Net profit margins during the year grew from 1.7% in FY17 to 5.0% in FY18.

BIRLA CABLE Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	1,927	3,214	66.8%
Other income	Rs m	32	10	-67.1%
Total Revenues	Rs m	1,958	3,225	64.7%
Gross profit	Rs m	135	345	155.2%
Depreciation	Rs m	77	77	-0.7%
Interest	Rs m	35	39	11.5%
Profit before tax	Rs m	55	240	337.5%
Tax	Rs m	22	79	265.7%
Profit after tax	Rs m	33	161	383.8%
Gross profit margin	%	7.0	10.7
Effective tax rate	%	39.3	32.8
Net profit margin	%	1.7	5.0

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BIRLA CABLE Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 1 billion as compared to Rs 962 million in FY17, thereby witnessing an increase of 22.5%.
• Long-term debt stood at Rs 119 million as compared to Rs 116 million during FY17, a growth of 2.8%.
• Current assets rose 42% and stood at Rs 2 billion, while fixed assets fell 7% and stood at Rs 744 million in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 3 billion as against Rs 2 billion during FY17, thereby witnessing a growth of 23%.

BIRLA CABLE Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	963	1,214	26.1
Current Liabilities	Rs m	962	1,178	22.5
Long-term Debt	Rs m	116	119	2.8
Total Liabilities	Rs m	2,093	2,581	23.3
Current assets	Rs m	1,291	1,837	42.3
Fixed Assets	Rs m	802	744	-7.2
Total Assets	Rs m	2,093	2,581	23.3

BIRLA CABLE Cash Flow Statement Analysis

• BIRLA CABLE's cash flow from operating activities (CFO) during FY18 stood at Rs -69 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 63 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 5 million, an improvement of 102% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -1 million from the Rs -74 million net cash flows seen during FY17.

BIRLA CABLE 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	295	-69	-
Cash Flow from Investing Activities	Rs m	-55	63	-
Cash Flow from Financing Activities	Rs m	-315	5	-
Net Cash Flow	Rs m	-74	-1	-

Current Valuations for BIRLA CABLE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.4, an improvement from the EPS of Rs 1.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 61.0, stands at 11.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 6.9 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	64.2	107.1
TTM Earnings per share	Rs	1.1	5.4
Diluted earnings per share	Rs	1.1	5.4
Price to Cash Flow	x	10.6	6.9
TTM P/E ratio	x	36.8	11.3
Price / Book Value ratio	x	1.2	1.4
Market Cap	Rs m	1,195	1,650
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for BIRLA CABLE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY18, from 1.3x 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 7.2x during FY18, from 2.6x 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 13.3% during FY18, from 3.5% 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 improved and stood at 20.9% during FY18, from 8.3% 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 improved and stood at 7.8% during FY18, from 3.3% 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	1.3	1.6
Debtors’ Days	Days	1,296	1,182
Interest coverage	x	2.6	7.2
Debt to equity ratio	x	0.1	0.1
Return on assets	%	3.3	7.8
Return on equity	%	3.5	13.3
Return on capital employed	%	8.3	20.9

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

BIRLA CABLE Share Price Performance

Over the last one year, BIRLA CABLE share price has moved up from Rs 39.1 to Rs 61.0, registering a gain of Rs 21.9 or around 56.1%.

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

(To know more, check out historical annual results for BIRLA CABLE and quarterly results for BIRLA CABLE)

Read: Latest Annual Report Analysis of BIRLA CABLE