BALRAMPUR CHINI 2017-18 Annual Report Analysis

Sat, 31 Mar

BALRAMPUR CHINI 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.

BALRAMPUR CHINI Income Statement Analysis

• Operating income during the year rose 30.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 48.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.5% in FY18 as against 26.5% in FY17.
• Depreciation charges decreased by 9.4% and finance costs decreased by 6.1% YoY, respectively.
• Other income grew by 20.8% YoY.
• Net profit for the year declined by 62.6% YoY.
• Net profit margins during the year declined from 18.0% in FY17 to 5.2% in FY18.

BALRAMPUR CHINI Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	32,793	42,844	30.6%
Other income	Rs m	251	303	20.8%
Total Revenues	Rs m	33,043	43,146	30.6%
Gross profit	Rs m	8,690	4,517	-48.0%
Depreciation	Rs m	1,050	952	-9.4%
Interest	Rs m	554	520	-6.1%
Profit before tax	Rs m	7,336	3,347	-54.4%
Tax	Rs m	1,422	1,135	-20.2%
Profit after tax	Rs m	5,915	2,213	-62.6%
Gross profit margin	%	26.5	10.5
Effective tax rate	%	19.4	33.9
Net profit margin	%	18.0	5.2

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BALRAMPUR CHINI Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 19 billion as compared to Rs 22 billion in FY17, thereby witnessing an decrease of -14.3%.
• Long-term debt down at Rs 107 million as compared to Rs 1 billion during FY17, a fall of 91.4%.
• Current assets fell 18% and stood at Rs 21 billion, while fixed assets rose 12% and stood at Rs 19 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 39 billion as against Rs 42 billion during FY17, thereby witnessing a fall of 6%.

BALRAMPUR CHINI Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	15,604	16,169	3.6
Current Liabilities	Rs m	21,837	18,716	-14.3
Long-term Debt	Rs m	1,243	107	-91.4
Total Liabilities	Rs m	42,119	39,496	-6.2
Current assets	Rs m	25,239	20,655	-18.2
Fixed Assets	Rs m	16,879	18,841	11.6
Total Assets	Rs m	42,119	39,496	-6.2

BALRAMPUR CHINI Cash Flow Statement Analysis

• BALRAMPUR CHINI's cash flow from operating activities (CFO) during FY18 stood at Rs 12 billion, an improvement of 241.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion, an improvement of 36.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -10 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 4 million from the Rs -41 million net cash flows seen during FY17.

BALRAMPUR CHINI 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	3,456	11,798	241.3%
Cash Flow from Investing Activities	Rs m	-1,165	-1,593	-
Cash Flow from Financing Activities	Rs m	-2,327	-10,201	-
Net Cash Flow	Rs m	-41	4	-

Current Valuations for BALRAMPUR CHINI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.7, an decline from the EPS of Rs 25.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 75.4, stands at 7.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 9.3 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	139.5	187.5
TTM Earnings per share	Rs	25.2	9.7
Diluted earnings per share	Rs	29.0	10.8
Price to Cash Flow	x	4.3	9.3
TTM P/E ratio	x	5.0	7.0
Price / Book Value ratio	x	2.0	1.8
Market Cap	Rs m	30,751	29,377
Dividends per share (Unadj.)	Rs	3.5	2.5

Ratio Analysis for BALRAMPUR CHINI

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x 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 deteriorated and stood at 7.4x during FY18, from 14.2x 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 13.7% during FY18, from 37.9% 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 23.8% during FY18, from 46.8% 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 6.9% during FY18, from 15.4% 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	1.2	1.1
Debtors’ Days	Days	181	155
Interest coverage	x	14.2	7.4
Debt to equity ratio	x	0.1	0.0
Return on assets	%	15.4	6.9
Return on equity	%	37.9	13.7
Return on capital employed	%	46.8	23.8

To see how BALRAMPUR CHINI has performed over the last 5 years, please visit here.

BALRAMPUR CHINI Share Price Performance

Over the last one year, BALRAMPUR CHINI share price has moved down from Rs 145.5 to Rs 75.4, registering a loss of Rs 70.1 or around 48.2%.

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

(To know more, check out historical annual results for BALRAMPUR CHINI and quarterly results for BALRAMPUR CHINI)

Read: Latest Annual Report Analysis of BALRAMPUR CHINI