BL KASHYAP & SONS 2017-18 Annual Report Analysis

Tue, 18 Dec

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 9.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.9% in FY18 as against 9.6% in FY17.
• Depreciation charges decreased by 8.2% and finance costs decreased by 6.7% YoY, respectively.
• Other income grew by 2229.8% YoY.
• Net profit for the year grew by 409.7% YoY.
• Net profit margins during the year grew from 0.5% in FY17 to 2.4% 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	9,236	10,122	9.6%
Other income	Rs m	13	305	2,229.8%
Total Revenues	Rs m	9,250	10,427	12.7%
Gross profit	Rs m	882	900	2.0%
Depreciation	Rs m	130	119	-8.2%
Interest	Rs m	827	772	-6.7%
Profit before tax	Rs m	-62	314	-609.6%
Tax	Rs m	-111	61	-154.9%
Profit after tax	Rs m	50	253	409.7%
Gross profit margin	%	9.6	8.9
Effective tax rate	%	180.5	19.5
Net profit margin	%	0.5	2.4

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 2% and stood at Rs 10 billion, while fixed assets fell 3% and stood at Rs 5 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 17 billion as against Rs 18 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	4,978	14.7
Current Liabilities	Rs m	10,002	9,447	-5.5
Long-term Debt	Rs m	1,508	1,330	-11.8
Total Liabilities	Rs m	17,740	17,467	-1.5
Current assets	Rs m	10,424	10,209	-2.1
Fixed Assets	Rs m	5,263	5,106	-3.0
Total Assets	Rs m	17,740	17,467	-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 742.3% 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	1,175	-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 1.2, 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 19.8, stands at 7.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 10.9 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	45.0	47.0
TTM Earnings per share	Rs	0.2	1.2
Diluted earnings per share	Rs	0.2	1.2
Price to Cash Flow	x	22.7	10.9
TTM P/E ratio	x	7.1	7.1
Price / Book Value ratio	x	1.0	2.0
Market Cap	Rs m	4,068	4,068
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BL KASHYAP & SONS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x 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 deteriorated and stood at 1.4x 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 5.1% during FY18, from 1.1% 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 17.2% 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 5.9% during FY18, from 4.9% 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	1.0	1.1
Debtors’ Days	Days	156	169
Interest coverage	x	0.9	1.4
Debt to equity ratio	x	0.3	0.3
Return on assets	%	4.9	5.9
Return on equity	%	1.1	5.1
Return on capital employed	%	13.1	17.2

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 58.2 to Rs 19.8, registering a loss of Rs 38.4 or around 66.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 1,835.2 (up 0.2%). Over the last one year it has moved down from 2,378.1 to 1,835.2, a loss of 543 points (down 22.8%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

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