BINANI INDUSTRIES 2017-18 Annual Report Analysis

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BINANI INDUSTRIES 2017-18 Annual Report Analysis
Wed, 6 Mar

BINANI 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.

BINANI INDUSTRIES Income Statement Analysis

  • Operating income during the year fell 47.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.3% in FY18 as against 8.2% in FY17.
  • Depreciation charges decreased by 53.6% and finance costs decreased by 70.2% YoY, respectively.
  • Other income declined by 38.9% YoY.
  • Net profit for the year declined by 104.8% YoY.
  • Net profit margins during the year grew from 12.5% in FY17 to 1.2% in FY18.

BINANI INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 36,660 19,110 -47.9%
Other income Rs m 806 492 -38.9%
Total Revenues Rs m 37,466 19,602 -47.7%
Gross profit Rs m 2,997 3,297 10.0%
Depreciation Rs m 2,369 1,100 -53.6%
Interest Rs m 6,799 2,028 -70.2%
Profit before tax Rs m -5,365 662 -112.3%
Tax Rs m -674 150 -122.3%
Profit after tax Rs m -4,691 226 -104.8%
Gross profit margin % 8.2 17.3
Effective tax rate % 12.6 22.7
Net profit margin % -12.5 1.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BINANI INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 32 billion as compared to Rs 30 billion in FY17, thereby witnessing an increase of 5.4%.
  • Long-term debt down at Rs 54 billion as compared to Rs 54 billion during FY17, a fall of 1.7%.
  • Current assets fell 0% and stood at Rs 16 billion, while fixed assets rose 3% and stood at Rs 55 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 76 billion as against Rs 74 billion during FY17, thereby witnessing a growth of 3%.

BINANI INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m -15,562 -14,669 -5.7
 
Current Liabilities Rs m 30,499 32,161 5.4
Long-term Debt Rs m 54,475 53,536 -1.7
Total Liabilities Rs m 73,760 75,713 2.6
 
Current assets Rs m 16,250 16,241 -0.1
Fixed Assets Rs m 53,100 54,878 3.3
Total Assets Rs m 73,760 75,713 2.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BINANI INDUSTRIES Cash Flow Statement Analysis

  • BINANI INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs 873 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -625 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -277 million, an improvement of 86% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -30 million from the Rs -356 million net cash flows seen during FY17.

BINANI 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 3,597 873 -75.7%
Cash Flow from Investing Activities Rs m -1,962 -625 -
Cash Flow from Financing Activities Rs m -1,990 -277 -
Net Cash Flow Rs m -356 -30 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BINANI INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.2, an improvement from the EPS of Rs -149.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 47.5, stands at -14.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -0.2 times, while the price to sales ratio stands at 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 1.1 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 1,168.6 609.2
TTM Earnings per share Rs -149.5 7.2
Diluted earnings per share Rs -158.5 7.6
Price to Cash Flow x -0.6 1.1
TTM P/E ratio x -15.5 -14.6
Price / Book Value ratio x -0.2 -0.2
Market Cap Rs m 1,489 1,405
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for BINANI INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY18, from 0.5x 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 1.3x during FY18, from 0.2x 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 -1.5% during FY18, from 30.1% 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 6.2% during FY18, from 3.7% 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 3.0% during FY18, from 2.9% 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 0.5 0.5
Debtors’ Days Days 81 159
Interest coverage x 0.2 1.3
Debt to equity ratio x -3.5 -3.6
Return on assets % 2.9 3.0
Return on equity % 30.1 -1.5
Return on capital employed % 3.7 6.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

BINANI INDUSTRIES Share Price Performance

Over the last one year, BINANI INDUSTRIES share price has moved up from Rs 103.8 to Rs 47.5, registering a loss of Rs 56.3 or around 54.3%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 11,274.5 (up 0.6%). Over the last one year it has moved down from 14,509.9 to 11,274.5, a loss of 3,235 points (down 22.3%).

Overall, the S&P BSE SENSEX is up 8.4% over the year.

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

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