CINELINE INDIA 2017-18 Annual Report Analysis

Sat, 31 Mar

CINELINE INDIA 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.

CINELINE INDIA Income Statement Analysis

• Operating income during the year fell 0.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 65.3% in FY18 as against 67.5% in FY17.
• Depreciation charges increased by 0.3% and finance costs decreased by 7.1% YoY, respectively.
• Other income declined by 8.9% YoY.
• Net profit for the year grew by 0.3% YoY.
• Net profit margins during the year grew from 46.9% in FY17 to 47.4% in FY18.

CINELINE INDIA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	224	223	-0.8%
Other income	Rs m	111	101	-8.9%
Total Revenues	Rs m	335	323	-3.4%
Gross profit	Rs m	151	145	-3.9%
Depreciation	Rs m	36	36	0.3%
Interest	Rs m	84	78	-7.1%
Profit before tax	Rs m	143	133	-6.9%
Tax	Rs m	38	27	-27.0%
Profit after tax	Rs m	105	105	0.3%
Gross profit margin	%	67.5	65.3
Effective tax rate	%	26.3	20.6
Net profit margin	%	46.9	47.4

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CINELINE INDIA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 95 million as compared to Rs 83 million in FY17, thereby witnessing an increase of 14.7%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY17, a fall of 3.7%.
• Current assets fell 92% and stood at Rs 64 million, while fixed assets rose 59% and stood at Rs 2 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 3 billion as against Rs 2 billion during FY17, thereby witnessing a growth of 6%.

CINELINE INDIA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	956	1,045	9.3
Current Liabilities	Rs m	83	95	14.7
Long-term Debt	Rs m	1,291	1,243	-3.7
Total Liabilities	Rs m	2,412	2,550	5.7
Current assets	Rs m	843	64	-92.4
Fixed Assets	Rs m	1,561	2,479	58.8
Total Assets	Rs m	2,412	2,550	5.7

CINELINE INDIA Cash Flow Statement Analysis

• CINELINE INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 768 million, an improvement of 864.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -578 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -190 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -1 million from the Rs 2 million net cash flows seen during FY17.

CINELINE INDIA 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	80	768	864.2%
Cash Flow from Investing Activities	Rs m	1	-578	-
Cash Flow from Financing Activities	Rs m	-79	-190	-
Net Cash Flow	Rs m	2	-1	-

Current Valuations for CINELINE INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.8, an improvement from the EPS of Rs 3.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 70.2, stands at 21.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 8.8 times.
• The company's price to cash flow (P/CF) ratio stood at 18.6 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	8.0	7.9
TTM Earnings per share	Rs	3.8	3.8
Diluted earnings per share	Rs	3.3	3.3
Price to Cash Flow	x	16.3	18.6
TTM P/E ratio	x	21.7	21.0
Price / Book Value ratio	x	1.9	2.5
Market Cap	Rs m	1,783	2,622
Dividends per share (Unadj.)	Rs	0.5	0.0

Ratio Analysis for CINELINE INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY18, from 10.2x 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 2.7x during FY18, from 2.7x 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 10.1% during FY18, from 11.0% 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 9.2% during FY18, from 10.1% 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 7.2% during FY18, from 7.8% 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	10.2	0.7
Debtors’ Days	Days	452	442
Interest coverage	x	2.7	2.7
Debt to equity ratio	x	1.4	1.2
Return on assets	%	7.8	7.2
Return on equity	%	11.0	10.1
Return on capital employed	%	10.1	9.2

To see how CINELINE INDIA has performed over the last 5 years, please visit here.

CINELINE INDIA Share Price Performance

Over the last one year, CINELINE INDIA share price has moved down from Rs 72.8 to Rs 70.2, registering a loss of Rs 2.6 or around 3.6%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 6,513.3 (down 0.7%). Over the last one year it has moved up from 5,771.5 to 6,513.3, a gain of 742 points (up 12.9%).

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

(To know more, check out historical annual results for CINELINE INDIA and quarterly results for CINELINE INDIA)

Read: Latest Annual Report Analysis of CINELINE INDIA