BOMBAY RAYON F 2017-18 Annual Report Analysis

Sat, 31 Mar

BOMBAY RAYON F 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.

BOMBAY RAYON F Income Statement Analysis

• Operating income during the year fell 20.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 66.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.4% in FY18 as against 15.2% in FY17.
• Depreciation charges decreased by 4.0% and finance costs decreased by 37.1% YoY, respectively.
• Other income declined by 1.5% YoY.
• Net profit for the year grew by 76.0% YoY.
• Net profit margins during the year declined from 4.2% in FY17 to 9.2% in FY18.

BOMBAY RAYON F Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	38,949	30,993	-20.4%
Other income	Rs m	222	219	-1.5%
Total Revenues	Rs m	39,171	31,211	-20.3%
Gross profit	Rs m	5,921	1,986	-66.5%
Depreciation	Rs m	1,666	1,598	-4.0%
Interest	Rs m	6,726	4,230	-37.1%
Profit before tax	Rs m	-2,248	-3,624	61.2%
Tax	Rs m	-625	-768	22.8%
Profit after tax	Rs m	-1,623	-2,856	76.0%
Gross profit margin	%	15.2	6.4
Effective tax rate	%	27.8	21.2
Net profit margin	%	-4.2	-9.2

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BOMBAY RAYON F Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 37 billion as compared to Rs 48 billion in FY17, thereby witnessing an decrease of -23.7%.
• Long-term debt down at Rs 12 billion as compared to Rs 17 billion during FY17, a fall of 25.9%.
• Current assets rose 3% and stood at Rs 58 billion, while fixed assets fell 6% and stood at Rs 35 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 93 billion as against Rs 94 billion during FY17, thereby witnessing a fall of 0%.

BOMBAY RAYON F Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	26,678	43,000	61.2
Current Liabilities	Rs m	48,146	36,751	-23.7
Long-term Debt	Rs m	16,653	12,332	-25.9
Total Liabilities	Rs m	93,523	93,390	-0.1
Current assets	Rs m	56,205	58,126	3.4
Fixed Assets	Rs m	37,318	35,264	-5.5
Total Assets	Rs m	93,523	93,390	-0.1

BOMBAY RAYON F Cash Flow Statement Analysis

• BOMBAY RAYON F's cash flow from operating activities (CFO) during FY18 stood at Rs -991 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -29 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 535 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -485 million from the Rs -283 million net cash flows seen during FY17.

BOMBAY RAYON F 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	-2,782	-991	-
Cash Flow from Investing Activities	Rs m	-61	-29	-
Cash Flow from Financing Activities	Rs m	2,560	535	-79.1%
Net Cash Flow	Rs m	-283	-485	-

Current Valuations for BOMBAY RAYON F

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -9.0, an decline from the EPS of Rs -8.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 43.3, stands at -4.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at -34.3 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	209.4	97.6
TTM Earnings per share	Rs	-8.7	-9.0
Diluted earnings per share	Rs	-5.1	-9.0
Price to Cash Flow	x	937.6	-34.3
TTM P/E ratio	x	-26.5	-4.9
Price / Book Value ratio	x	1.1	1.0
Market Cap	Rs m	29,420	43,177
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BOMBAY RAYON F

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY18, from 1.2x 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 0.1x during FY18, from 0.7x 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 -6.6% during FY18, from -6.1% 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 declined and down at 1.1% during FY18, from 10.3% 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 1.5% during FY18, from 5.5% 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	1.2	1.6
Debtors’ Days	Days	13	19
Interest coverage	x	0.7	0.1
Debt to equity ratio	x	0.6	0.3
Return on assets	%	5.5	1.5
Return on equity	%	-6.1	-6.6
Return on capital employed	%	10.3	1.1

To see how BOMBAY RAYON F has performed over the last 5 years, please visit here.

BOMBAY RAYON F Share Price Performance

Over the last one year, BOMBAY RAYON F share price has moved down from Rs 126.1 to Rs 43.3, registering a loss of Rs 82.9 or around 65.7%.

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

(To know more, check out historical annual results for BOMBAY RAYON F and quarterly results for BOMBAY RAYON F)

Read: Latest Annual Report Analysis of BOMBAY RAYON F