CENTURY TEXTILES 2017-18 Annual Report Analysis

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CENTURY TEXTILES 2017-18 Annual Report Analysis
Sat, 31 Mar

CENTURY TEXTILES 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.

CENTURY TEXTILES Income Statement Analysis

  • Operating income during the year rose 17.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 5.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.3% in FY18 as against 12.6% in FY17.
  • Depreciation charges decreased by 36.4% and finance costs decreased by 61.6% YoY, respectively.
  • Other income declined by 39.0% YoY.
  • Net profit for the year grew by 254.0% YoY.
  • Net profit margins during the year grew from 1.5% in FY17 to 4.4% in FY18.

CENTURY TEXTILES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 71,466 84,134 17.7%
Other income Rs m 766 468 -39.0%
Total Revenues Rs m 72,232 84,601 17.1%
Gross profit Rs m 9,014 9,545 5.9%
Depreciation Rs m 3,133 1,993 -36.4%
Interest Rs m 5,530 2,123 -61.6%
Profit before tax Rs m 1,117 5,897 427.9%
Tax Rs m 67 2,180 3,148.9%
Profit after tax Rs m 1,050 3,717 254.0%
Gross profit margin % 12.6 11.3
Effective tax rate % 6.0 37.0
Net profit margin % 1.5 4.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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CENTURY TEXTILES Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 41 billion as compared to Rs 44 billion in FY17, thereby witnessing an decrease of -8.8%.
  • Long-term debt down at Rs 24 billion as compared to Rs 31 billion during FY17, a fall of 23.5%.
  • Current assets rose 5% and stood at Rs 24 billion, while fixed assets fell 1% and stood at Rs 80 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 103 billion as against Rs 103 billion during FY17, thereby witnessing a fall of 0%.

CENTURY TEXTILES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 24,819 27,479 10.7
 
Current Liabilities Rs m 44,471 40,559 -8.8
Long-term Debt Rs m 31,260 23,924 -23.5
Total Liabilities Rs m 103,363 103,313 0.0
 
Current assets Rs m 22,544 23,585 4.6
Fixed Assets Rs m 80,819 79,728 -1.3
Total Assets Rs m 103,363 103,313 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



CENTURY TEXTILES Cash Flow Statement Analysis

  • CENTURY TEXTILES's cash flow from operating activities (CFO) during FY18 stood at Rs 22 billion, an improvement of 135.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -18 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 2 billion from the Rs 5 billion net cash flows seen during FY17.

CENTURY TEXTILES 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 9,400 22,091 135.0%
Cash Flow from Investing Activities Rs m -2,470 -1,949 -
Cash Flow from Financing Activities Rs m -1,752 -17,952 -
Net Cash Flow Rs m 5,179 2,190 -57.7%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for CENTURY TEXTILES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.3, an improvement from the EPS of Rs 9.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,145.3, stands at 31.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 24.4 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 639.8 753.2
TTM Earnings per share Rs 9.4 33.3
Diluted earnings per share Rs 9.4 33.3
Price to Cash Flow x 28.1 24.4
TTM P/E ratio x 126.8 31.8
Price / Book Value ratio x 3.6 5.1
Market Cap Rs m 88,893 139,279
Dividends per share (Unadj.) Rs 5.5 6.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for CENTURY TEXTILES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.6x during FY18, from 0.5x 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 3.8x 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 improved and stood at 13.5% during FY18, from 4.2% 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 15.6% during FY18, from 11.9% 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 5.7% during FY18, from 6.4% 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 0.5 0.6
Debtors’ Days Days 3 2
Interest coverage x 1.2 3.8
Debt to equity ratio x 1.3 0.9
Return on assets % 6.4 5.7
Return on equity % 4.2 13.5
Return on capital employed % 11.9 15.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how CENTURY TEXTILES has performed over the last 5 years, please visit here.

CENTURY TEXTILES Share Price Performance

Over the last one year, CENTURY TEXTILES share price has moved up from Rs 1,053.3 to Rs 1,145.3, registering a gain of Rs 92.0 or around 8.7%.

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

(To know more, check out historical annual results for CENTURY TEXTILES and quarterly results for CENTURY TEXTILES)

Annual Report FAQs

What is the current share price of CENTURY TEXTILES?

CENTURY TEXTILES currently trades at Rs 806.0 per share. You can check out the latest share price performance of CENTURY TEXTILES here...

What was the revenue of CENTURY TEXTILES in FY18? How does it compare to earlier years?

The revenues of CENTURY TEXTILES stood at Rs 84,601 m in FY18, which was up 17.1% compared to Rs 72,232 m reported in FY17.

CENTURY TEXTILES' revenue has grown from Rs 60,579 m in FY14 to Rs 84,601 m in FY18.

Over the past 5 years, the revenue of CENTURY TEXTILES has grown at a CAGR of 8.7%.

What was the net profit of CENTURY TEXTILES in FY18? How does it compare to earlier years?

The net profit of CENTURY TEXTILES stood at Rs 3,717 m in FY18, which was up 254.0% compared to Rs 1,050 m reported in FY17.

This compares to a net loss of Rs -950 m in FY16 and a net profit of Rs 155 m in FY15.

Over the past 5 years, CENTURY TEXTILES net profit has grown at a CAGR of 241.9%.

What does the cash flow statement of CENTURY TEXTILES reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of CENTURY TEXTILES reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 22,091 m as compared to Rs 9,400 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -1,949 m as compared to Rs -2,470 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -17,952 m as compared to Rs -1,752 m in FY17.

Here's the cash flow statement of CENTURY TEXTILES for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations5,9123,80110,2009,40022,091
From Investments-7,582-5,093-3,569-2,470-1,949
From Financial Activity1,8551,475-12,424-1,752-17,952
Net Cashflow185183-5,7935,1792,190

What does the Key Ratio analysis of CENTURY TEXTILES reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of CENTURY TEXTILES reveals:

  • Operating profit margins witnessed a fall and stood at 11.3% in FY18 as against 12.6% in FY17.
  • Net profit margins grew from 1.5% in FY17 to 4.4% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.9 as compared to 1.3 in FY17.

Here's the ratio/financial analysis of CENTURY TEXTILES for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)12.09.69.412.611.3
Net Profit Margin (%)0.00.2-1.31.54.4
Debt to Equity Ratio (x)1.61.81.41.30.9

Read: Latest Annual Report Analysis of CENTURY TEXTILES

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