COAL INDIA 2017-18 Annual Report Analysis

Tue, 1 Jan

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 rose 8.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 23.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.7% in FY18 as against 16.5% in FY17.
• Depreciation charges increased by 5.5% and finance costs increased by 5.5% YoY, respectively.
• Other income declined by 12.5% YoY.
• Net profit for the year declined by 24.3% YoY.
• Net profit margins during the year declined from 11.5% in FY17 to 8.1% in FY18.

COAL INDIA Income Statement 2017-18

COAL INDIA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 508 billion as compared to Rs 440 billion in FY17, thereby witnessing an increase of 15.4%.
• Long-term debt stood at Rs 11 billion as compared to Rs 3 billion during FY17, a growth of 257.7%.
• Current assets fell 2% and stood at Rs 688 billion, while fixed assets rose 17% and stood at Rs 379 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 1,275 billion as against Rs 1,178 billion during FY17, thereby witnessing a growth of 8%.

COAL INDIA Balance Sheet as on March 2018

COAL INDIA Cash Flow Statement Analysis

• COAL INDIA 's cash flow from operating activities (CFO) during FY18 stood at Rs 213 billion, an improvement of 29.2% 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 -12 million from the Rs -7 billion net cash flows seen during FY17.

COAL INDIA Cash Flow Statement 2017-18

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 14.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 240.4, stands at 13.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.6 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 15.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

Ratio Analysis for COAL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved 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 25.8x during FY18, from 36.3x 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 35.4% during FY18, from 37.8% 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 53.4% 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 5.8% during FY18, from 8.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

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 up from Rs 263.0 to Rs 240.4, registering a loss of Rs 22.6 or around 8.6%.

Overall, the S&P BSE SENSEX is up 6.2% over the year.

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