COROMANDEL INTERN 2017-18 Annual Report Analysis

Sat, 31 Mar

COROMANDEL INTERN 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.

COROMANDEL INTERN Income Statement Analysis

• Operating income during the year rose 11.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.4% in FY18 as against 10.0% in FY17.
• Depreciation charges decreased by 1.6% and finance costs decreased by 20.3% YoY, respectively.
• Other income grew by 8.9% YoY.
• Net profit for the year grew by 44.9% YoY.
• Net profit margins during the year grew from 4.8% in FY17 to 6.3% in FY18.

COROMANDEL INTERN Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	98,664	110,388	11.9%
Other income	Rs m	548	597	8.9%
Total Revenues	Rs m	99,212	110,985	11.9%
Gross profit	Rs m	9,827	12,564	27.9%
Depreciation	Rs m	1,007	991	-1.6%
Interest	Rs m	2,238	1,783	-20.3%
Profit before tax	Rs m	7,130	10,387	45.7%
Tax	Rs m	2,353	3,468	47.4%
Profit after tax	Rs m	4,777	6,919	44.9%
Gross profit margin	%	10.0	11.4
Effective tax rate	%	33.0	33.4
Net profit margin	%	4.8	6.3

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COROMANDEL INTERN Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 68 billion as compared to Rs 56 billion in FY17, thereby witnessing an increase of 21.9%.
• Current assets rose 19% and stood at Rs 82 billion, while fixed assets fell 7% and stood at Rs 17 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 98 billion as against Rs 86 billion during FY17, thereby witnessing a growth of 14%.

COROMANDEL INTERN Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	28,884	28,872	0.0
Current Liabilities	Rs m	55,791	68,013	21.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	86,450	98,484	13.9
Current assets	Rs m	68,367	81,619	19.4
Fixed Assets	Rs m	18,083	16,865	-6.7
Total Assets	Rs m	86,450	98,484	13.9

COROMANDEL INTERN Cash Flow Statement Analysis

• COROMANDEL INTERN's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 320 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -10 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 3 billion from the Rs -278 million net cash flows seen during FY17.

COROMANDEL INTERN 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	9,152	2,633	-71.2%
Cash Flow from Investing Activities	Rs m	-786	320	-
Cash Flow from Financing Activities	Rs m	-8,644	-10	-
Net Cash Flow	Rs m	-278	2,998	-

Current Valuations for COROMANDEL INTERN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.7, an improvement from the EPS of Rs 16.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 523.8, stands at 23.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 16.6 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	338.3	377.5
TTM Earnings per share	Rs	16.4	23.7
Diluted earnings per share	Rs	16.3	23.6
Price to Cash Flow	x	15.9	16.6
TTM P/E ratio	x	19.3	23.1
Price / Book Value ratio	x	2.8	4.5
Market Cap	Rs m	79,677	130,988
Dividends per share (Unadj.)	Rs	5.0	6.5

Ratio Analysis for COROMANDEL INTERN

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY18, from 1.2x 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 6.8x during FY18, from 4.2x 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 24.0% during FY18, from 16.5% 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 42.2% during FY18, from 32.4% 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 8.8% during FY18, from 8.1% 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	1.2	1.2
Debtors’ Days	Days	600	522
Interest coverage	x	4.2	6.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.1	8.8
Return on equity	%	16.5	24.0
Return on capital employed	%	32.4	42.2

To see how COROMANDEL INTERN has performed over the last 5 years, please visit here.

COROMANDEL INTERN Share Price Performance

Over the last one year, COROMANDEL INTERN share price has moved up from Rs 312.8 to Rs 523.8, registering a gain of Rs 211.0 or around 67.5%.

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

(To know more, check out historical annual results for COROMANDEL INTERN and quarterly results for COROMANDEL INTERN)

Read: Latest Annual Report Analysis of COROMANDEL INTERN