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RELIANCE INFRA 2017-18 Annual Report Analysis

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RELIANCE INFRA 2017-18 Annual Report Analysis
Wed, 19 Dec

RELIANCE INFRA 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.

RELIANCE INFRA Income Statement Analysis

  • Operating income during the year rose 3.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 32.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.9% in FY18 as against 19.6% in FY17.
  • Depreciation charges increased by 14.6% and finance costs increased by 13.6% YoY, respectively.
  • Other income declined by 2.8% YoY.
  • Net profit for the year grew by 11.7% YoY.
  • Net profit margins during the year grew from 4.1% in FY17 to 4.4% in FY18.

RELIANCE INFRA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 244,835 253,983 3.7%
Other income Rs m 22,339 21,704 -2.8%
Total Revenues Rs m 267,174 275,686 3.2%
Gross profit Rs m 47,966 63,343 32.1%
Depreciation Rs m 16,882 19,346 14.6%
Interest Rs m 55,810 63,409 13.6%
Profit before tax Rs m -2,388 2,292 -196.0%
Tax Rs m -1,422 -1,266 -11.0%
Profit after tax Rs m 10,890 12,160 11.7%
Gross profit margin % 19.6 24.9
Effective tax rate % 59.6 -55.2
Net profit margin % 4.1 4.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RELIANCE INFRA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 431 billion as compared to Rs 403 billion in FY17, thereby witnessing an increase of 7.0%.
  • Long-term debt down at Rs 147 billion as compared to Rs 150 billion during FY17, a fall of 1.6%.
  • Current assets rose 13% and stood at Rs 256 billion, while fixed assets rose 2% and stood at Rs 258 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 1,007 billion as against Rs 983 billion during FY17, thereby witnessing a growth of 2%.

RELIANCE INFRA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 233,475 242,190 3.7
 
Current Liabilities Rs m 403,060 431,294 7.0
Long-term Debt Rs m 149,646 147,192 -1.6
Total Liabilities Rs m 983,492 1,007,223 2.4
 
Current assets Rs m 226,899 255,789 12.7
Fixed Assets Rs m 253,425 257,924 1.8
Total Assets Rs m 983,492 1,007,223 2.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RELIANCE INFRA Cash Flow Statement Analysis

  • RELIANCE INFRA's cash flow from operating activities (CFO) during FY18 stood at Rs 82 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -8 billion, an improvement of 1,171.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -75 billion, an improvement of 12% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -811 million from the Rs 2 billion net cash flows seen during FY17.

RELIANCE INFRA 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 86,782 81,587 -6.0%
Cash Flow from Investing Activities Rs m -596 -7,582 -
Cash Flow from Financing Activities Rs m -84,516 -74,630 -
Net Cash Flow Rs m 1,520 -811 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for RELIANCE INFRA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 46.2, an improvement from the EPS of Rs 41.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 297.7, stands at -3.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 2.5 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 930.8 965.6
TTM Earnings per share Rs 41.4 46.2
Diluted earnings per share Rs 40.7 45.5
Price to Cash Flow x 2.8 2.5
TTM P/E ratio x -3.3 -3.4
Price / Book Value ratio x 0.6 0.6
Market Cap Rs m 78,304 79,611
Dividends per share (Unadj.) Rs 9.0 9.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for RELIANCE INFRA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.6x during FY18, from 0.6x 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 1.0x during FY18, from 1.0x 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 improved and stood at 5.0% during FY18, from 4.7% 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 19.1% during FY18, from 17.0% 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 7.5% during FY18, from 6.8% 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 0.6 0.6
Debtors’ Days Days 84 78
Interest coverage x 1.0 1.0
Debt to equity ratio x 0.6 0.6
Return on assets % 6.8 7.5
Return on equity % 4.7 5.0
Return on capital employed % 17.0 19.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how RELIANCE INFRA has performed over the last 5 years, please visit here.

RELIANCE INFRA Share Price Performance

Over the last one year, RELIANCE INFRA share price has moved up from Rs 443.1 to Rs 297.7, registering a loss of Rs 145.4 or around 32.8%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,005.1 (up 1.1%). Over the last one year it has moved down from 2,297.2 to 2,005.1, a loss of 292 points (down 12.7%).

Overall, the S&P BSE SENSEX is up 8.7% over the year.

(To know more, check out historical annual results for RELIANCE INFRA and quarterly results for RELIANCE INFRA)

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RELIANCE INFRA Surges by 8%; BSE POWER Index Down 0.1% (Market Updates)

Jul 17, 2019 | Updated on Jul 17, 2019

RELIANCE INFRA share price has surged by 8% and its current market price is Rs 52. The BSE POWER is down by 0.1%. The top gainers in the BSE POWER Index is RELIANCE INFRA (up 8.4%). The top losers are SIEMENS (down 0.1%) and BHEL (down 0.3%).

RELIANCE INFRA Announces Quarterly Results (4QFY19); Net Profit Down 428.1% (Quarterly Result Update)

Jun 17, 2019 | Updated on Jun 17, 2019

For the quarter ended March 2019, RELIANCE INFRA has posted a net profit of Rs 22 bn (down 428.1% YoY). Sales on the other hand came in at Rs 40 bn (down 22.3% YoY). Read on for a complete analysis of RELIANCE INFRA's quarterly results.

RELIANCE INFRA Announces Quarterly Results (3QFY19); Net Profit Down 534.8% (Quarterly Result Update)

Feb 13, 2019 | Updated on Feb 13, 2019

For the quarter ended December 2018, RELIANCE INFRA has posted a net profit of Rs 2 bn (down 534.8% YoY). Sales on the other hand came in at Rs 41 bn (down 29.8% YoY). Read on for a complete analysis of RELIANCE INFRA's quarterly results.

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