COAL INDIA 2017-18 Annual Report Analysis

Sat, 31 Mar

COAL 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.

COAL INDIA Income Statement Analysis

• Operating income during the year fell 64.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 25.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.8% in FY18 as against 10.4% in FY17.
• Depreciation charges increased by 5.4% and finance costs increased by 4.8% YoY, respectively.
• Other income declined by 8.3% YoY.
• Net profit for the year declined by 24.2% YoY.
• Net profit margins during the year grew from 8.2% in FY17 to 17.6% in FY18.

COAL INDIA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	1,131,485	400,141	-64.6%
Other income	Rs m	60,329	55,314	-8.3%
Total Revenues	Rs m	1,191,814	455,455	-61.8%
Gross profit	Rs m	117,307	87,317	-25.6%
Depreciation	Rs m	29,068	30,627	5.4%
Interest	Rs m	4,104	4,301	4.8%
Profit before tax	Rs m	144,463	107,703	-25.4%
Tax	Rs m	51,648	37,323	-27.7%
Profit after tax	Rs m	92,815	70,380	-24.2%
Gross profit margin	%	10.4	21.8
Effective tax rate	%	35.8	34.7
Net profit margin	%	8.2	17.6

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COAL INDIA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 483 billion as compared to Rs 440 billion in FY17, thereby witnessing an increase of 9.8%.
• Long-term debt stood at Rs 11 billion as compared to Rs 3 billion during FY17, a growth of 257.7%.
• Current assets fell 5% and stood at Rs 661 billion, while fixed assets rose 20% and stood at Rs 540 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 1,201 billion as against Rs 1,151 billion during FY17, thereby witnessing a growth of 4%.

COAL INDIA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	245,181	201,787	-17.7
Current Liabilities	Rs m	440,158	483,191	9.8
Long-term Debt	Rs m	2,948	10,544	257.7
Total Liabilities	Rs m	1,150,825	1,201,156	4.4
Current assets	Rs m	699,199	661,156	-5.4
Fixed Assets	Rs m	451,626	540,000	19.6
Total Assets	Rs m	1,150,825	1,201,156	4.4

COAL INDIA Cash Flow Statement Analysis

• COAL INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 211 billion, an improvement of 28.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -77 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -136 billion, an improvement of 23% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -2 billion from the Rs -7 billion net cash flows seen during FY17.

COAL 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	164,608	211,149	28.3%
Cash Flow from Investing Activities	Rs m	4,546	-77,469	-
Cash Flow from Financing Activities	Rs m	-175,980	-135,642	-
Net Cash Flow	Rs m	-6,825	-1,962	-

Current Valuations for COAL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.3, an decline from the EPS of Rs 15.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 283.5, stands at 24.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.7 times, while the price to sales ratio stands at 4.4 times.
• The company's price to cash flow (P/CF) ratio stood at 16.9 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	182.3	64.5
TTM Earnings per share	Rs	15.0	11.3
Diluted earnings per share	Rs	15.1	11.4
Price to Cash Flow	x	14.8	16.9
TTM P/E ratio	x	19.5	24.9
Price / Book Value ratio	x	7.9	8.5
Market Cap	Rs m	1,930,504	1,708,900
Dividends per share (Unadj.)	Rs	19.9	16.5

Ratio Analysis for COAL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY18, from 1.6x 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 26.0x during FY18, from 36.2x 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 34.9% 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 52.7% during FY18, from 59.9% 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 6.2% during FY18, from 8.4% 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	1.6	1.4
Debtors’ Days	Days	4	6
Interest coverage	x	36.2	26.0
Debt to equity ratio	x	0.0	0.1
Return on assets	%	8.4	6.2
Return on equity	%	37.9	34.9
Return on capital employed	%	59.9	52.7

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

COAL INDIA Share Price Performance

Over the last one year, COAL INDIA share price has moved down from Rs 292.8 to Rs 283.5, registering a loss of Rs 9.3 or around 3.2%.

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

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

Read: Latest Annual Report Analysis of COAL INDIA