CENTURY PLYBOARDS 2017-18 Annual Report Analysis

Sat, 31 Mar

CENTURY PLYBOARDS 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 PLYBOARDS Income Statement Analysis

• Operating income during the year rose 18.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.7% in FY18 as against 18.6% in FY17.
• Depreciation charges increased by 52.8% and finance costs increased by 18.6% YoY, respectively.
• Other income declined by 65.1% YoY.
• Net profit for the year declined by 14.1% YoY.
• Net profit margins during the year declined from 11.5% in FY17 to 8.4% in FY18.

CENTURY PLYBOARDS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	16,756	19,879	18.6%
Other income	Rs m	226	79	-65.1%
Total Revenues	Rs m	16,982	19,958	17.5%
Gross profit	Rs m	3,120	3,311	6.1%
Depreciation	Rs m	593	907	52.8%
Interest	Rs m	302	358	18.6%
Profit before tax	Rs m	2,450	2,124	-13.3%
Tax	Rs m	515	463	-10.1%
Profit after tax	Rs m	1,935	1,661	-14.1%
Gross profit margin	%	18.6	16.7
Effective tax rate	%	21.0	21.8
Net profit margin	%	11.5	8.4

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CENTURY PLYBOARDS Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 7 billion as compared to Rs 7 billion in FY17, thereby witnessing an decrease of -2.7%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY17, a growth of 13.8%.
• Current assets fell 3% and stood at Rs 8 billion, while fixed assets rose 26% and stood at Rs 8 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 17 billion as against Rs 15 billion during FY17, thereby witnessing a growth of 9%.

CENTURY PLYBOARDS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	7,149	8,516	19.1
Current Liabilities	Rs m	6,989	6,800	-2.7
Long-term Debt	Rs m	1,467	1,669	13.8
Total Liabilities	Rs m	15,160	16,564	9.3
Current assets	Rs m	8,703	8,458	-2.8
Fixed Assets	Rs m	6,458	8,106	25.5
Total Assets	Rs m	15,160	16,564	9.3

CENTURY PLYBOARDS Cash Flow Statement Analysis

• CENTURY PLYBOARDS's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion, an improvement of 38.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -461 million from the Rs 284 million net cash flows seen during FY17.

CENTURY PLYBOARDS 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	2,205	3,046	38.1%
Cash Flow from Investing Activities	Rs m	-3,043	-2,504	-
Cash Flow from Financing Activities	Rs m	1,122	-1,003	-
Net Cash Flow	Rs m	284	-461	-

Current Valuations for CENTURY PLYBOARDS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.5, an decline from the EPS of Rs 8.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 326.5, stands at 46.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.5 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 25.9 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	75.4	89.5
TTM Earnings per share	Rs	8.7	7.5
Diluted earnings per share	Rs	8.7	7.5
Price to Cash Flow	x	22.8	25.9
TTM P/E ratio	x	31.0	46.3
Price / Book Value ratio	x	6.5	7.8
Market Cap	Rs m	46,823	66,480
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for CENTURY PLYBOARDS

• 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 deteriorated and stood at 6.9x during FY18, from 9.1x 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 19.5% during FY18, from 27.1% 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 24.4% during FY18, from 31.9% 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 12.2% during FY18, from 14.8% 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	1.2	1.2
Debtors’ Days	Days	745	656
Interest coverage	x	9.1	6.9
Debt to equity ratio	x	0.2	0.2
Return on assets	%	14.8	12.2
Return on equity	%	27.1	19.5
Return on capital employed	%	31.9	24.4

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

CENTURY PLYBOARDS Share Price Performance

Over the last one year, CENTURY PLYBOARDS share price has moved up from Rs 259.2 to Rs 326.5, registering a gain of Rs 67.4 or around 26.0%.

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

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

Read: Latest Annual Report Analysis of CENTURY PLYBOARDS