BRIGADE ENTERPRISES 2017-18 Annual Report Analysis

Sat, 31 Mar

BRIGADE ENTERPRISES 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.

BRIGADE ENTERPRISES Income Statement Analysis

• Operating income during the year fell 6.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.6% in FY18 as against 28.4% in FY17.
• Depreciation charges increased by 12.3% and finance costs increased by 5.2% YoY, respectively.
• Other income grew by 46.5% YoY.
• Net profit for the year declined by 20.4% YoY.
• Net profit margins during the year declined from 8.2% in FY17 to 7.0% in FY18.

BRIGADE ENTERPRISES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	20,241	18,972	-6.3%
Other income	Rs m	342	502	46.5%
Total Revenues	Rs m	20,584	19,474	-5.4%
Gross profit	Rs m	5,744	5,429	-5.5%
Depreciation	Rs m	1,226	1,377	12.3%
Interest	Rs m	2,465	2,594	5.2%
Profit before tax	Rs m	2,396	1,960	-18.2%
Tax	Rs m	732	635	-13.2%
Profit after tax	Rs m	1,664	1,325	-20.4%
Gross profit margin	%	28.4	28.6
Effective tax rate	%	30.5	32.4
Net profit margin	%	8.2	7.0

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

BRIGADE ENTERPRISES Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 25 billion as compared to Rs 27 billion in FY17, thereby witnessing an decrease of -7.4%.
• Long-term debt stood at Rs 26 billion as compared to Rs 16 billion during FY17, a growth of 65.8%.
• Current assets rose 11% and stood at Rs 31 billion, while fixed assets rose 33% and stood at Rs 47 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 78 billion as against Rs 64 billion during FY17, thereby witnessing a growth of 23%.

BRIGADE ENTERPRISES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	16,939	22,865	35.0
Current Liabilities	Rs m	26,645	24,681	-7.4
Long-term Debt	Rs m	15,885	26,331	65.8
Total Liabilities	Rs m	63,500	78,097	23.0
Current assets	Rs m	28,000	31,048	10.9
Fixed Assets	Rs m	35,500	47,050	32.5
Total Assets	Rs m	63,500	78,097	23.0

BRIGADE ENTERPRISES Cash Flow Statement Analysis

• BRIGADE ENTERPRISES's cash flow from operating activities (CFO) during FY18 stood at Rs 487 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -11 billion, an improvement of 224.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 10 billion, an improvement of 1,883% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -38 million from the Rs 54 million net cash flows seen during FY17.

BRIGADE ENTERPRISES 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	3,978	487	-87.8%
Cash Flow from Investing Activities	Rs m	-3,346	-10,842	-
Cash Flow from Financing Activities	Rs m	-579	10,317	-
Net Cash Flow	Rs m	54	-38	-

Current Valuations for BRIGADE ENTERPRISES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.7, an decline from the EPS of Rs 14.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 245.3, stands at 42.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 13.7 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	178.1	139.4
TTM Earnings per share	Rs	14.6	9.7
Diluted earnings per share	Rs	7.2	5.7
Price to Cash Flow	x	18.7	13.7
TTM P/E ratio	x	33.3	42.6
Price / Book Value ratio	x	1.3	1.6
Market Cap	Rs m	21,942	37,130
Dividends per share (Unadj.)	Rs	2.5	2.0

Ratio Analysis for BRIGADE ENTERPRISES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY18, from 1.1x 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 1.8x during FY18, from 2.0x 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 5.8% during FY18, from 9.8% 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 9.3% during FY18, from 14.8% 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 5.0% during FY18, from 6.5% 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	1.1	1.3
Debtors’ Days	Days	67	340
Interest coverage	x	2.0	1.8
Debt to equity ratio	x	0.9	1.2
Return on assets	%	6.5	5.0
Return on equity	%	9.8	5.8
Return on capital employed	%	14.8	9.3

To see how BRIGADE ENTERPRISES has performed over the last 5 years, please visit here.

BRIGADE ENTERPRISES Share Price Performance

Over the last one year, BRIGADE ENTERPRISES share price has moved up from Rs 234.0 to Rs 245.3, registering a gain of Rs 11.3 or around 4.8%.

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 BRIGADE ENTERPRISES and quarterly results for BRIGADE ENTERPRISES)

Read: Latest Annual Report Analysis of BRIGADE ENTERPRISES