CONTAINER CORPORATION 2017-18 Annual Report Analysis

Sat, 31 Mar

CONTAINER CORPORATION 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.

CONTAINER CORPORATION Income Statement Analysis

• Operating income during the year rose 10.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.6% in FY18 as against 20.9% in FY17.
• Depreciation charges increased by 14.4% and finance costs increased by 4.7% YoY, respectively.
• Other income grew by 0.6% YoY.
• Net profit for the year grew by 20.9% YoY.
• Net profit margins during the year grew from 13.9% in FY17 to 15.2% in FY18.

CONTAINER CORPORATION Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	59,797	66,125	10.6%
Other income	Rs m	2,850	2,868	0.6%
Total Revenues	Rs m	62,648	68,993	10.1%
Gross profit	Rs m	12,481	14,924	19.6%
Depreciation	Rs m	3,671	4,200	14.4%
Interest	Rs m	60	63	4.7%
Profit before tax	Rs m	11,601	13,529	16.6%
Tax	Rs m	3,294	3,486	5.8%
Profit after tax	Rs m	8,306	10,043	20.9%
Gross profit margin	%	20.9	22.6
Effective tax rate	%	28.4	25.8
Net profit margin	%	13.9	15.2

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CONTAINER CORPORATION Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 12 billion as compared to Rs 8 billion in FY17, thereby witnessing an increase of 37.2%.
• Long-term debt down at Rs 620 million as compared to Rs 620 million during FY17, a fall of 0.0%.
• Current assets rose 22% and stood at Rs 33 billion, while fixed assets rose 3% and stood at Rs 77 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 109 billion as against Rs 101 billion during FY17, thereby witnessing a growth of 8%.

CONTAINER CORPORATION Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	87,712	93,218	6.3
Current Liabilities	Rs m	8,483	11,637	37.2
Long-term Debt	Rs m	620	620	0.0
Total Liabilities	Rs m	101,254	109,176	7.8
Current assets	Rs m	26,823	32,636	21.7
Fixed Assets	Rs m	74,431	76,540	2.8
Total Assets	Rs m	101,254	109,176	7.8

CONTAINER CORPORATION Cash Flow Statement Analysis

• CONTAINER CORPORATION's cash flow from operating activities (CFO) during FY18 stood at Rs 13 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -7 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 757 million from the Rs 9 billion net cash flows seen during FY17.

CONTAINER CORPORATION 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	20,294	13,133	-35.3%
Cash Flow from Investing Activities	Rs m	-8,820	-7,452	-
Cash Flow from Financing Activities	Rs m	-2,925	-4,924	-
Net Cash Flow	Rs m	8,549	757	-91.2%

Current Valuations for CONTAINER CORPORATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.2, an decline from the EPS of Rs 42.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,243.8, stands at 72.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.1 times, while the price to sales ratio stands at 4.6 times.
• The company's price to cash flow (P/CF) ratio stood at 21.3 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	306.7	271.3
TTM Earnings per share	Rs	42.6	41.2
Diluted earnings per share	Rs	13.6	16.5
Price to Cash Flow	x	64.7	21.3
TTM P/E ratio	x	90.3	72.2
Price / Book Value ratio	x	2.9	3.2
Market Cap	Rs m	257,990	302,770
Dividends per share (Unadj.)	Rs	8.6	8.6

Ratio Analysis for CONTAINER CORPORATION

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.8x during FY18, from 3.2x 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 improved and stood at 216.1x during FY18, from 194.0x 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 10.8% during FY18, from 9.5% 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 improved and stood at 14.5% during FY18, from 13.2% 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 9.3% during FY18, from 8.3% 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	3.2	2.8
Debtors’ Days	Days	0	1
Interest coverage	x	194.0	216.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.3	9.3
Return on equity	%	9.5	10.8
Return on capital employed	%	13.2	14.5

To see how CONTAINER CORPORATION has performed over the last 5 years, please visit here.

CONTAINER CORPORATION Share Price Performance

Over the last one year, CONTAINER CORPORATION share price has moved down from Rs 1,271.1 to Rs 1,243.8, registering a loss of Rs 27.3 or around 2.1%.

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

(To know more, check out historical annual results for CONTAINER CORPORATION and quarterly results for CONTAINER CORPORATION)

Read: Latest Annual Report Analysis of CONTAINER CORPORATION