BF UTILITIES 2017-18 Annual Report Analysis

Sat, 31 Mar

BF UTILITIES 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.

BF UTILITIES Income Statement Analysis

• Operating income during the year rose 19.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 75.1% in FY18 as against 74.5% in FY17.
• Depreciation charges increased by 4.7% and finance costs decreased by 6.3% YoY, respectively.
• Other income grew by 32.0% YoY.
• Net profit for the year declined by 222.9% YoY.
• Net profit margins during the year grew from 8.7% in FY17 to 9.0% in FY18.

BF UTILITIES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	3,363	4,006	19.1%
Other income	Rs m	84	111	32.0%
Total Revenues	Rs m	3,447	4,117	19.4%
Gross profit	Rs m	2,505	3,010	20.2%
Depreciation	Rs m	598	626	4.7%
Interest	Rs m	2,225	2,084	-6.3%
Profit before tax	Rs m	-234	410	-275.4%
Tax	Rs m	59	50	-16.6%
Profit after tax	Rs m	-293	360	-222.9%
Gross profit margin	%	74.5	75.1
Effective tax rate	%	-25.4	12.1
Net profit margin	%	-8.7	9.0

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BF UTILITIES Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 2 billion as compared to Rs 2 billion in FY17, thereby witnessing an decrease of -2.2%.
• Long-term debt down at Rs 16 billion as compared to Rs 17 billion during FY17, a fall of 5.8%.
• Current assets fell 8% and stood at Rs 3 billion, while fixed assets fell 1% and stood at Rs 16 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 18 billion as against Rs 19 billion during FY17, thereby witnessing a fall of 2%.

BF UTILITIES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	-3,155	-2,923	-7.3
Current Liabilities	Rs m	1,596	1,560	-2.2
Long-term Debt	Rs m	16,774	15,803	-5.8
Total Liabilities	Rs m	18,740	18,418	-1.7
Current assets	Rs m	2,984	2,741	-8.1
Fixed Assets	Rs m	15,757	15,677	-0.5
Total Assets	Rs m	18,740	18,418	-1.7

BF UTILITIES Cash Flow Statement Analysis

• BF UTILITIES's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion, an improvement of 10.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -243 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -80 million from the Rs 73 million net cash flows seen during FY17.

BF UTILITIES 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	2,538	2,813	10.8%
Cash Flow from Investing Activities	Rs m	123	-243	-
Cash Flow from Financing Activities	Rs m	-2,589	-2,650	-
Net Cash Flow	Rs m	73	-80	-

Current Valuations for BF UTILITIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.6, an improvement from the EPS of Rs -7.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 381.7, stands at 91.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -4.9 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 17.4 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	89.3	106.3
TTM Earnings per share	Rs	-7.8	9.6
Diluted earnings per share	Rs	-7.8	9.6
Price to Cash Flow	x	54.6	17.4
TTM P/E ratio	x	229.4	91.8
Price / Book Value ratio	x	-6.0	-5.9
Market Cap	Rs m	18,834	17,180
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BF UTILITIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY18, from 1.9x 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 1.2x during FY18, from 0.9x 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 -12.3% during FY18, from 9.3% 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 19.4% during FY18, from 14.6% 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 improved and stood at 13.3% during FY18, from 10.3% 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	1.9	1.8
Debtors’ Days	Days	10,319,557	2
Interest coverage	x	0.9	1.2
Debt to equity ratio	x	-5.3	-5.4
Return on assets	%	10.3	13.3
Return on equity	%	9.3	-12.3
Return on capital employed	%	14.6	19.4

To see how BF UTILITIES has performed over the last 5 years, please visit here.

BF UTILITIES Share Price Performance

Over the last one year, BF UTILITIES share price has moved down from Rs 441.5 to Rs 381.7, registering a loss of Rs 59.8 or around 13.5%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,125.8 (down 1.1%). Over the last one year it has moved down from 2,274.4 to 2,125.8, a loss of 149 points (down 6.5%).

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

(To know more, check out historical annual results for BF UTILITIES and quarterly results for BF UTILITIES)

Read: Latest Annual Report Analysis of BF UTILITIES