INDUS TOWERS 2017-18 Annual Report Analysis

Sat, 31 Mar

INDUS TOWERS 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.

INDUS TOWERS Income Statement Analysis

• Operating income during the year rose 8.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 44.9% in FY18 as against 46.4% in FY17.
• Depreciation charges increased by 1.2% and finance costs increased by 18.0% YoY, respectively.
• Other income declined by 37.2% YoY.
• Net profit for the year declined by 23.2% YoY.
• Net profit margins during the year declined from 25.5% in FY17 to 18.0% in FY18.

INDUS TOWERS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	60,847	66,212	8.8%
Other income	Rs m	7,647	4,806	-37.2%
Total Revenues	Rs m	68,494	71,018	3.7%
Gross profit	Rs m	28,251	29,727	5.2%
Depreciation	Rs m	11,657	11,801	1.2%
Interest	Rs m	394	465	18.0%
Profit before tax	Rs m	23,847	22,267	-6.6%
Tax	Rs m	8,327	10,355	24.4%
Profit after tax	Rs m	15,520	11,912	-23.2%
Gross profit margin	%	46.4	44.9
Effective tax rate	%	34.9	46.5
Net profit margin	%	25.5	18.0

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INDUS TOWERS Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 18 billion as compared to Rs 46 billion in FY17, thereby witnessing an decrease of -60.3%.
• Current assets rose 56% and stood at Rs 76 billion, while fixed assets fell 25% and stood at Rs 120 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 196 billion as against Rs 209 billion during FY17, thereby witnessing a fall of 6%.

INDUS TOWERS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	154,993	169,644	9.5
Current Liabilities	Rs m	45,735	18,159	-60.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	209,411	196,254	-6.3
Current assets	Rs m	48,759	76,120	56.1
Fixed Assets	Rs m	160,652	120,134	-25.2
Total Assets	Rs m	209,411	196,254	-6.3

INDUS TOWERS Cash Flow Statement Analysis

• INDUS TOWERS's cash flow from operating activities (CFO) during FY18 stood at Rs 35 billion, an improvement of 21.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -19 billion, an improvement of 682.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -36 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -19 billion from the Rs -420 million net cash flows seen during FY17.

INDUS TOWERS 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	28,662	34,694	21.0%
Cash Flow from Investing Activities	Rs m	-2,372	-18,551	-
Cash Flow from Financing Activities	Rs m	-26,710	-35,548	-
Net Cash Flow	Rs m	-420	-19,405	-

Current Valuations for INDUS TOWERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.4, an decline from the EPS of Rs 8.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 336.3, stands at 76.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 9.4 times.
• The company's price to cash flow (P/CF) ratio stood at 31.2 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	32.9	35.8
TTM Earnings per share	Rs	8.4	6.4
Diluted earnings per share	Rs	5.8	4.4
Price to Cash Flow	x	32.3	31.2
TTM P/E ratio	x	31.9	76.1
Price / Book Value ratio	x	4.2	4.4
Market Cap	Rs m	643,340	740,352
Dividends per share (Unadj.)	Rs	16.0	14.0

Ratio Analysis for INDUS TOWERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.2x during FY18, from 1.1x 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 deteriorated and stood at 48.9x during FY18, from 61.5x 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 7.0% during FY18, from 10.0% 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 13.4% during FY18, from 15.6% 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 declined and down at 6.3% during FY18, from 7.6% 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	1.1	4.2
Debtors’ Days	Days	18	15
Interest coverage	x	61.5	48.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.6	6.3
Return on equity	%	10.0	7.0
Return on capital employed	%	15.6	13.4

To see how INDUS TOWERS has performed over the last 5 years, please visit here.

INDUS TOWERS Share Price Performance

Over the last one year, INDUS TOWERS share price has moved up from Rs 325.5 to Rs 336.3, registering a gain of Rs 10.8 or around 3.3%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 6,513.3 (down 0.7%). Over the last one year it has moved up from 5,771.5 to 6,513.3, a gain of 742 points (up 12.9%).

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

(To know more, check out historical annual results for INDUS TOWERS and quarterly results for INDUS TOWERS)

Read: Latest Annual Report Analysis of INDUS TOWERS