CESC LTD 2017-18 Annual Report Analysis

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CESC LTD 2017-18 Annual Report Analysis
Tue, 26 Mar

CESC LTD 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.

CESC LTD Income Statement Analysis

  • Operating income during the year rose 22.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 7.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 28.5% in FY18 as against 32.7% in FY17.
  • Depreciation charges increased by 5.1% and finance costs decreased by 5.1% YoY, respectively.
  • Other income grew by 9.6% YoY.
  • Net profit for the year grew by 36.0% YoY.
  • Net profit margins during the year grew from 7.6% in FY17 to 8.5% in FY18.

CESC LTD Income Statement 2017-18

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
Net SalesRs m83,634102,74922.9%
Other incomeRs m2,3002,5209.6%
Total RevenuesRs m85,933105,26922.5%
Gross profitRs m27,38929,3177.0%
DepreciationRs m7,1487,5155.1%
InterestRs m13,72413,030-5.1%
Profit before taxRs m8,81711,29328.1%
TaxRs m3,2103,56211.0%
Profit after taxRs m6,5478,90236.0%
Gross profit margin%32.728.5
Effective tax rate%36.431.5
Net profit margin%7.68.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CESC LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 57 billion as compared to Rs 62 billion in FY17, thereby witnessing an decrease of -8.7%.
  • Long-term debt down at Rs 110 billion as compared to Rs 116 billion during FY17, a fall of 4.7%.
  • Current assets fell 22% and stood at Rs 44 billion, while fixed assets fell 12% and stood at Rs 239 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 330 billion as against Rs 379 billion during FY17, thereby witnessing a fall of 13%.

CESC LTD Balance Sheet as on March 2018

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
NetworthRs m106,22784,202-20.7
 
Current LiabilitiesRs m61,99656,574-8.7
Long-term DebtRs m115,897110,478-4.7
Total LiabilitiesRs m378,727329,874-12.9
 
Current assetsRs m56,78044,395-21.8
Fixed AssetsRs m 270,181239,008-11.5
Total AssetsRs m378,727329,874-12.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CESC LTD Cash Flow Statement Analysis

  • CESC LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 24 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -14 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -4 billion from the Rs 4 billion net cash flows seen during FY17.

CESC LTD Cash Flow Statement 2017-18

ParticularsNo. of months1212% Change
Year EndingMar-17Mar-18
Cash Flow from Operating ActivitiesRs m26,55224,321-8.4%
Cash Flow from Investing ActivitiesRs m-14,932-9,814-
Cash Flow from Financing ActivitiesRs m-7,592-14,490-
Net Cash FlowRs m4,028-3,742-
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for CESC LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 67.2, an improvement from the EPS of Rs 49.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 708.6, stands at 13.1 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 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Sales per share (Unadj.)Rs630.9775.1
TTM Earnings per shareRs49.467.2
Diluted earnings per shareRs49.467.2
Price to Cash Flow x7.15.9
TTM P/E ratiox13.113.1
Price / Book Value ratiox0.81.6
Market CapRs m93,93293,932
Dividends per share (Unadj.)Rs10.012.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for CESC LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.8x 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 improved and stood at 1.9x during FY18, from 1.6x 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 10.6% during FY18, from 6.2% 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 13.1% during FY18, from 10.6% 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 improved and stood at 6.6% during FY18, from 5.4% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Current ratiox0.90.8
Debtors’ DaysDays6855
Interest coveragex1.61.9
Debt to equity ratiox1.11.3
Return on assets%5.46.6
Return on equity%6.210.6
Return on capital employed%10.613.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how CESC LTD has performed over the last 5 years, please visit here.

CESC LTD Share Price Performance

Over the last one year, CESC LTD share price has moved up from Rs 953.8 to Rs 708.6, registering a loss of Rs 245.2 or around 25.7%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,036.0 (up 1.3%). Over the last one year it has moved down from 2,133.3 to 2,036.0, a loss of 97 points (down 4.6%).

(To know more, check out historical annual results for CESC LTD and quarterly results for CESC LTD)

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Related Views on News

CESC LTD Announces Quarterly Results (2QFY20); Net Profit Up 1.5% (Quarterly Result Update)

Nov 15, 2019 | Updated on Nov 15, 2019

For the quarter ended September 2019, CESC LTD has posted a net profit of Rs 3 bn (up 1.5% YoY). Sales on the other hand came in at Rs 22 bn (up 1.2% YoY). Read on for a complete analysis of CESC LTD's quarterly results.

CESC LTD Announces Quarterly Results (1QFY20); Net Profit Up 19.2% (Quarterly Result Update)

Aug 26, 2019 | Updated on Aug 26, 2019

For the quarter ended June 2019, CESC LTD has posted a net profit of Rs 2 bn (up 19.2% YoY). Sales on the other hand came in at Rs 24 bn (up 9.3% YoY). Read on for a complete analysis of CESC LTD's quarterly results.

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