BALLARPUR INDUSTRIES 2017-18 Annual Report Analysis

Sat, 31 Mar

BALLARPUR INDUSTRIES 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.

BALLARPUR INDUSTRIES Income Statement Analysis

• Operating income during the year rose 24.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.9% YoY during the fiscal. Operating profit margins witnessed a growth and down at 40.3% in FY18 as against 45.2% in FY17.
• Depreciation charges increased by 4.6% and finance costs increased by 1.8% YoY, respectively.
• Other income declined by 58.8% YoY.
• Net profit for the year declined by 1.7% YoY.
• Net profit margins during the year grew from 100.2% in FY17 to 79.1% in FY18.

BALLARPUR INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	20,667	25,726	24.5%
Other income	Rs m	656	270	-58.8%
Total Revenues	Rs m	21,324	25,996	21.9%
Gross profit	Rs m	-9,341	-10,356	10.9%
Depreciation	Rs m	2,645	2,767	4.6%
Interest	Rs m	9,007	9,168	1.8%
Profit before tax	Rs m	-20,337	-22,020	8.3%
Tax	Rs m	375	-1,664	-544.3%
Profit after tax	Rs m	-20,711	-20,356	-1.7%
Gross profit margin	%	-45.2	-40.3
Effective tax rate	%	-1.8	7.6
Net profit margin	%	-100.2	-79.1

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BALLARPUR INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 67 billion as compared to Rs 92 billion in FY17, thereby witnessing an decrease of -26.9%.
• Long-term debt stood at Rs 48 billion as compared to Rs 35 billion during FY17, a growth of 36.6%.
• Current assets rose 75% and stood at Rs 39 billion, while fixed assets fell 30% and stood at Rs 77 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 116 billion as against Rs 132 billion during FY17, thereby witnessing a fall of 12%.

BALLARPUR INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	-749	3,145	-519.9
Current Liabilities	Rs m	91,663	66,995	-26.9
Long-term Debt	Rs m	35,108	47,954	36.6
Total Liabilities	Rs m	131,665	115,783	-12.1
Current assets	Rs m	22,203	38,824	74.9
Fixed Assets	Rs m	109,459	76,960	-29.7
Total Assets	Rs m	131,665	115,783	-12.1

BALLARPUR INDUSTRIES Cash Flow Statement Analysis

• BALLARPUR INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -420 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 287 million from the Rs -1 billion net cash flows seen during FY17.

BALLARPUR INDUSTRIES 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	-8,058	4,172	-
Cash Flow from Investing Activities	Rs m	-1,074	-420	-
Cash Flow from Financing Activities	Rs m	6,957	-4,397	-
Net Cash Flow	Rs m	-1,323	287	-

Current Valuations for BALLARPUR INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -15.7, an improvement from the EPS of Rs -31.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 12.5, stands at -0.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.1 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at -1.3 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	31.5	19.9
TTM Earnings per share	Rs	-31.6	-15.7
Diluted earnings per share	Rs	-16.0	-15.7
Price to Cash Flow	x	-1.4	-1.3
TTM P/E ratio	x	-2.4	-0.9
Price / Book Value ratio	x	-14.8	7.0
Market Cap	Rs m	11,118	21,989
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BALLARPUR INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY18, from 0.2x 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 deteriorated and stood at -1.4x during FY18, from -1.3x 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 -647.3% during FY18, from 2,765.2% 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 -25.2% during FY18, from -33.0% 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 -9.7% during FY18, from -8.9% 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	0.2	0.6
Debtors’ Days	Days	125	124
Interest coverage	x	-1.3	-1.4
Debt to equity ratio	x	-46.9	15.2
Return on assets	%	-8.9	-9.7
Return on equity	%	2,765.2	-647.3
Return on capital employed	%	-33.0	-25.2

To see how BALLARPUR INDUSTRIES has performed over the last 5 years, please visit here.

BALLARPUR INDUSTRIES Share Price Performance

Over the last one year, BALLARPUR INDUSTRIES share price has moved down from Rs 19.6 to Rs 12.5, registering a loss of Rs 7.1 or around 36.2%.

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

(To know more, check out historical annual results for BALLARPUR INDUSTRIES and quarterly results for BALLARPUR INDUSTRIES)