BF UTILITIES 2017-18 Annual Report Analysis

Wed, 27 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 19.2% 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 75.2% in FY18 as against 74.6% in FY17.
• Depreciation charges increased by 4.7% and finance costs decreased by 6.3% YoY, respectively.
• Other income grew by 32.3% YoY.
• Net profit for the year declined by 221.9% YoY.
• Net profit margins during the year grew from 8.5% in FY17 to 8.7% 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	4,010	19.2%
Other income	Rs m	81	107	32.3%
Total Revenues	Rs m	3,444	4,117	19.5%
Gross profit	Rs m	2,508	3,013	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	53	-10.6%
Profit after tax	Rs m	-293	357	-221.9%
Gross profit margin	%	74.6	75.2
Effective tax rate	%	-25.3	12.9
Net profit margin	%	-8.5	8.7

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 -1.2%.
• Long-term debt down at Rs 16 billion as compared to Rs 17 billion during FY17, a fall of 5.8%.
• Current assets rose 5% and stood at Rs 3 billion, while fixed assets fell 6% and stood at Rs 12 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 3%.

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	1,576	-1.2
Long-term Debt	Rs m	16,774	15,803	-5.8
Total Liabilities	Rs m	18,741	18,169	-3.1
Current assets	Rs m	2,984	3,122	4.6
Fixed Assets	Rs m	12,721	12,017	-5.5
Total Assets	Rs m	18,741	18,169	-3.1

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 9.5, 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 191.5, stands at 24.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -5.9 times, while the price to sales ratio stands at 4.3 times.
• The company's price to cash flow (P/CF) ratio stood at 7.3 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	106.4
TTM Earnings per share	Rs	-7.8	9.5
Diluted earnings per share	Rs	-7.8	9.5
Price to Cash Flow	x	23.7	7.3
TTM P/E ratio	x	24.6	24.6
Price / Book Value ratio	x	-6.0	-5.9
Market Cap	Rs m	7,212	7,212
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BF UTILITIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x 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 -12.2% 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 13.4% 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	2.0
Debtors’ Days	Days	10	2
Interest coverage	x	0.9	1.2
Debt to equity ratio	x	-5.3	-5.4
Return on assets	%	10.3	13.4
Return on equity	%	9.3	-12.2
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 up from Rs 388.3 to Rs 191.5, registering a loss of Rs 196.9 or around 50.7%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,047.3 (up 0.2%). Over the last one year it has moved down from 2,148.5 to 2,047.3, a loss of 101 points (down 4.7%).

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