BL KASHYAP & SONS 2017-18 Annual Report Analysis

Sat, 31 Mar

BL KASHYAP & SONS 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.

BL KASHYAP & SONS Income Statement Analysis

• Operating income during the year rose 9.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.4% in FY18 as against 9.6% in FY17.
• Depreciation charges decreased by 8.3% and finance costs decreased by 6.7% YoY, respectively.
• Other income grew by 1808.9% YoY.
• Net profit for the year grew by 307.5% YoY.
• Net profit margins during the year grew from 0.5% in FY17 to 2.0% in FY18.

BL KASHYAP & SONS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	9,219	10,116	9.7%
Other income	Rs m	16	305	1,808.9%
Total Revenues	Rs m	9,235	10,421	12.8%
Gross profit	Rs m	881	853	-3.2%
Depreciation	Rs m	130	119	-8.3%
Interest	Rs m	827	772	-6.7%
Profit before tax	Rs m	-60	267	-542.7%
Tax	Rs m	-111	61	-155.2%
Profit after tax	Rs m	51	206	307.5%
Gross profit margin	%	9.6	8.4
Effective tax rate	%	183.8	22.9
Net profit margin	%	0.5	2.0

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BL KASHYAP & SONS Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 9 billion as compared to Rs 10 billion in FY17, thereby witnessing an decrease of -5.5%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY17, a fall of 11.8%.
• Current assets fell 13% and stood at Rs 9 billion, while fixed assets rose 19% and stood at Rs 7 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 16 billion as against Rs 16 billion during FY17, thereby witnessing a fall of 2%.

BL KASHYAP & SONS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	4,342	4,976	14.6
Current Liabilities	Rs m	10,002	9,455	-5.5
Long-term Debt	Rs m	1,508	1,330	-11.8
Total Liabilities	Rs m	16,353	16,104	-1.5
Current assets	Rs m	10,424	9,046	-13.2
Fixed Assets	Rs m	5,929	7,058	19.0
Total Assets	Rs m	16,353	16,104	-1.5

BL KASHYAP & SONS Cash Flow Statement Analysis

• BL KASHYAP & SONS's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -225 million, an improvement of 743.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -449 million, an improvement of 82% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 501 million from the Rs -8 million net cash flows seen during FY17.

BL KASHYAP & SONS 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	2,451	1,174	-52.1%
Cash Flow from Investing Activities	Rs m	-27	-225	-
Cash Flow from Financing Activities	Rs m	-2,432	-449	-
Net Cash Flow	Rs m	-8	501	-

Current Valuations for BL KASHYAP & SONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.0, an improvement from the EPS of Rs 0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 43.0, stands at 19.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 31.0 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	44.9	47.0
TTM Earnings per share	Rs	0.2	1.0
Diluted earnings per share	Rs	0.2	0.9
Price to Cash Flow	x	26.6	31.0
TTM P/E ratio	x	70.4	19.8
Price / Book Value ratio	x	1.0	2.0
Market Cap	Rs m	4,212	10,088
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BL KASHYAP & SONS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY18, from 1.0x 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 0.9x 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 improved and stood at 4.1% during FY18, from 1.2% 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 16.5% during FY18, from 13.1% 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 6.1% during FY18, from 5.4% 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	1.0	1.0
Debtors’ Days	Days	156,753,959	127,225,821
Interest coverage	x	0.9	1.3
Debt to equity ratio	x	0.3	0.3
Return on assets	%	5.4	6.1
Return on equity	%	1.2	4.1
Return on capital employed	%	13.1	16.5

To see how BL KASHYAP & SONS has performed over the last 5 years, please visit here.

BL KASHYAP & SONS Share Price Performance

Over the last one year, BL KASHYAP & SONS share price has moved up from Rs 21.3 to Rs 43.0, registering a gain of Rs 21.7 or around 102.1%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,229.9 (down 1.1%). Over the last one year it has moved up from 1,600.0 to 2,229.9, a gain of 630 points (up 39.4%).

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

(To know more, check out historical annual results for BL KASHYAP & SONS and quarterly results for BL KASHYAP & SONS)

Read: Latest Annual Report Analysis of BL KASHYAP & SONS