COUNTRY CLUB 2017-18 Annual Report Analysis

Sat, 31 Mar

COUNTRY CLUB 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.

COUNTRY CLUB Income Statement Analysis

• Operating income during the year fell 27.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 48.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.9% in FY18 as against 23.8% in FY17.
• Depreciation charges increased by 5.7% and finance costs decreased by 5.3% YoY, respectively.
• Other income declined by 52.1% YoY.
• Net profit for the year declined by 1088.2% YoY.
• Net profit margins during the year declined from 1.1% in FY17 to 14.6% in FY18.

COUNTRY CLUB Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	4,529	3,305	-27.0%
Other income	Rs m	40	19	-52.1%
Total Revenues	Rs m	4,570	3,324	-27.3%
Gross profit	Rs m	1,080	559	-48.2%
Depreciation	Rs m	454	480	5.7%
Interest	Rs m	533	505	-5.3%
Profit before tax	Rs m	133	-406	-405.8%
Tax	Rs m	84	76	-9.6%
Profit after tax	Rs m	49	-483	-1,088.2%
Gross profit margin	%	23.8	16.9
Effective tax rate	%	63.3	-18.7
Net profit margin	%	1.1	-14.6

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COUNTRY CLUB Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 1 billion as compared to Rs 1 billion in FY17, thereby witnessing an decrease of -0.8%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY17, a fall of 3.0%.
• Current assets fell 1% and stood at Rs 1 billion, while fixed assets fell 3% and stood at Rs 15 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 16 billion as against Rs 17 billion during FY17, thereby witnessing a fall of 3%.

COUNTRY CLUB Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	10,330	9,869	-4.5
Current Liabilities	Rs m	1,437	1,426	-0.8
Long-term Debt	Rs m	4,075	3,951	-3.0
Total Liabilities	Rs m	16,721	16,197	-3.1
Current assets	Rs m	1,241	1,232	-0.7
Fixed Assets	Rs m	15,480	14,965	-3.3
Total Assets	Rs m	16,721	16,197	-3.1

COUNTRY CLUB Cash Flow Statement Analysis

• COUNTRY CLUB's cash flow from operating activities (CFO) during FY18 stood at Rs 513 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 37 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -568 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -18 million from the Rs -76 million net cash flows seen during FY17.

COUNTRY CLUB 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	833	513	-38.4%
Cash Flow from Investing Activities	Rs m	-922	37	-
Cash Flow from Financing Activities	Rs m	13	-568	-
Net Cash Flow	Rs m	-76	-18	-

Current Valuations for COUNTRY CLUB

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.0, an decline from the EPS of Rs 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 12.2, stands at -11.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.2 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at -1,015.9 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	27.7	20.2
TTM Earnings per share	Rs	0.3	-3.0
Diluted earnings per share	Rs	0.3	-3.0
Price to Cash Flow	x	4.0	-1,015.9
TTM P/E ratio	x	-12.6	-11.6
Price / Book Value ratio	x	0.2	0.3
Market Cap	Rs m	2,292	2,697
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for COUNTRY CLUB

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY18, from 0.9x 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 0.2x during FY18, from 1.2x 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 -4.9% during FY18, from 0.5% 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 0.7% during FY18, from 4.6% 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 0.1% during FY18, from 3.5% 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	0.9	0.9
Debtors’ Days	Days	15,886,417	21,762,192
Interest coverage	x	1.2	0.2
Debt to equity ratio	x	0.4	0.4
Return on assets	%	3.5	0.1
Return on equity	%	0.5	-4.9
Return on capital employed	%	4.6	0.7

To see how COUNTRY CLUB has performed over the last 5 years, please visit here.

COUNTRY CLUB Share Price Performance

Over the last one year, COUNTRY CLUB share price has moved down from Rs 12.2 to Rs 12.2, registering a loss of Rs 0.0 or around 0.1%.

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

(To know more, check out historical annual results for COUNTRY CLUB and quarterly results for COUNTRY CLUB)

Read: Latest Annual Report Analysis of COUNTRY CLUB