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COX & KINGS 2016-17 Annual Report Analysis

Fri, 31 Mar

COX & KINGS has announced its results for the year ended March 2017. Let us have a look at the detailed performance review of the company during FY16-17.

COX & KINGS Income Statement Analysis

• Operating income during the year fell 4.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.4% in FY17 as against 6.4% in FY16.
• Depreciation charges decreased by 35.8% and finance costs decreased by 12.1% YoY, respectively.
• Other income declined by 37.7% YoY.
• Net profit for the year declined by 2899.5% YoY.
• Net profit margins during the year grew from 0.1% in FY16 to 3.1% in FY17.

COX & KINGS Income Statement 2016-17

No. of Mths Year Ending		12 Mar-16*	12 Mar-17*	% Change
Net Sales	Rs m	75,053	71,763	-4.4%
Other income	Rs m	814	507	-37.7%
Total Revenues	Rs m	75,867	72,270	-4.7%
Gross profit	Rs m	4,811	6,735	40.0%
Depreciation	Rs m	1,485	953	-35.8%
Interest	Rs m	2,652	2,332	-12.1%
Profit before tax	Rs m	1,487	3,956	166.0%
Tax	Rs m	1,567	1,722	9.9%
Profit after tax	Rs m	-80	2,234	-2,899.5%
Gross profit margin	%	6.4	9.4
Effective tax rate	%	105.4	43.5
Net profit margin	%	-0.1	3.1

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COX & KINGS Balance Sheet Analysis

• The company's current liabilities during FY17 down at Rs 30 billion as compared to Rs 32 billion in FY16, thereby witnessing an decrease of -5.4%.
• Long-term debt down at Rs 26 billion as compared to Rs 28 billion during FY16, a fall of 9.4%.
• Current assets rose 5% and stood at Rs 47 billion, while fixed assets fell 12% and stood at Rs 43 billion in FY17.
• Overall, the total assets and liabilities for FY17 stood at Rs 90 billion as against Rs 94 billion during FY16, thereby witnessing a fall of 4%.

COX & KINGS Balance Sheet as on March 2017

No. of Mths Year Ending		12 Mar-16*	12 Mar-17*	% Change
Networth	Rs m	24,040	25,995	8.1
Current Liabilities	Rs m	32,033	30,297	-5.4
Long-term Debt	Rs m	28,258	25,599	-9.4
Total Liabilities	Rs m	93,500	89,970	-3.8
Current assets	Rs m	44,604	46,804	4.9
Fixed Assets	Rs m	48,896	43,166	-11.7
Total Assets	Rs m	93,500	89,970	-3.8

COX & KINGS Cash Flow Statement Analysis

• COX & KINGS's cash flow from operating activities (CFO) during FY17 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY17 stood at Rs -233 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY17 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY17 stood at Rs -204 million from the Rs -271 million net cash flows seen during FY16.

COX & KINGS Cash Flow Statement 2016-17

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-16	Mar-17
Cash Flow from Operating Activities	Rs m	7,477	2,627	-64.9%
Cash Flow from Investing Activities	Rs m	-4,426	-233	-
Cash Flow from Financing Activities	Rs m	-967	-2,600	-
Net Cash Flow	Rs m	-271	-204	-

Current Valuations for COX & KINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.7, an improvement from the EPS of Rs -0.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 230.9, stands at 27.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 10.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-16*	12 Mar-17*
Sales per share (Unadj.)	Rs	443.3	406.5
TTM Earnings per share	Rs	-0.5	12.7
Diluted earnings per share	Rs	-0.5	12.7
Price to Cash Flow	x	22.7	10.8
TTM P/E ratio	x	8.1	27.7
Price / Book Value ratio	x	1.7	1.3
Market Cap	Rs m	40,763	34,271
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for COX & KINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY17, from 1.4x during FY16. 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 2.7x during FY17, from 1.6x during FY16. 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 8.6% during FY17, from -0.3% during FY17. 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 12.2% during FY17, from 7.9% during FY16. 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 5.1% during FY17, from 2.8% during FY16. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-16*	12 Mar-17*
Current ratio	x	1.4	1.5
Debtors’ Days	Days	680	926
Interest coverage	x	1.6	2.7
Debt to equity ratio	x	1.2	1.0
Return on assets	%	2.8	5.1
Return on equity	%	-0.3	8.6
Return on capital employed	%	7.9	12.2

To see how COX & KINGS has performed over the last 5 years, please visit here.

COX & KINGS Share Price Performance

Over the last one year, COX & KINGS share price has moved up from Rs 180.6 to Rs 230.9, registering a gain of Rs 50.3 or around 27.9%.

Overall, the S&P BSE SENSEX is up 16.9% over the year.

(To know more, check out historical annual results for COX & KINGS and quarterly results for COX & KINGS)