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CARBORUNDUM UNIVERSAL 2017-18 Annual Report Analysis

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CARBORUNDUM UNIVERSAL 2017-18 Annual Report Analysis
Fri, 28 Dec

CARBORUNDUM UNIVERSAL 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.

CARBORUNDUM UNIVERSAL Income Statement Analysis

  • Operating income during the year rose 12.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 19.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.8% in FY18 as against 15.8% in FY17.
  • Depreciation charges increased by 9.9% and finance costs decreased by 52.5% YoY, respectively.
  • Other income grew by 0.5% YoY.
  • Net profit for the year grew by 19.5% YoY.
  • Net profit margins during the year grew from 8.6% in FY17 to 9.2% in FY18.

CARBORUNDUM UNIVERSAL Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 21,125 23,678 12.1%
Other income Rs m 228 229 0.5%
Total Revenues Rs m 21,353 23,907 12.0%
Gross profit Rs m 3,346 3,987 19.1%
Depreciation Rs m 965 1,060 9.9%
Interest Rs m 181 86 -52.5%
Profit before tax Rs m 2,428 3,070 26.4%
Tax Rs m 781 1,020 30.7%
Profit after tax Rs m 1,838 2,196 19.5%
Gross profit margin % 15.8 16.8
Effective tax rate % 32.2 33.2
Net profit margin % 8.6 9.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CARBORUNDUM UNIVERSAL Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 4 billion as compared to Rs 4 billion in FY17, thereby witnessing an increase of 1.3%.
  • Long-term debt down at Rs 66 million as compared to Rs 67 million during FY17, a fall of 0.7%.
  • Current assets rose 19% and stood at Rs 12 billion, while fixed assets fell 1% and stood at Rs 8 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 21 billion as against Rs 19 billion during FY17, thereby witnessing a growth of 9%.

CARBORUNDUM UNIVERSAL Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 13,828 15,644 13.1
 
Current Liabilities Rs m 4,132 4,186 1.3
Long-term Debt Rs m 67 66 -0.7
Total Liabilities Rs m 19,222 20,985 9.2
 
Current assets Rs m 9,710 11,552 19.0
Fixed Assets Rs m 7,774 7,659 -1.5
Total Assets Rs m 19,222 20,985 9.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CARBORUNDUM UNIVERSAL Cash Flow Statement Analysis

  • CARBORUNDUM UNIVERSAL's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -748 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -832 million, an improvement of 60% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 549 million from the Rs 162 million net cash flows seen during FY17.

CARBORUNDUM UNIVERSAL 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 2,953 2,130 -27.9%
Cash Flow from Investing Activities Rs m -813 -748 -
Cash Flow from Financing Activities Rs m -2,071 -832 -
Net Cash Flow Rs m 162 549 238.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for CARBORUNDUM UNIVERSAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.6, an improvement from the EPS of Rs 9.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 357.0, stands at 29.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 2.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.6 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 112.0 125.3
TTM Earnings per share Rs 9.7 11.6
Diluted earnings per share Rs 9.8 11.7
Price to Cash Flow x 25.8 21.6
TTM P/E ratio x 29.2 29.1
Price / Book Value ratio x 3.2 4.3
Market Cap Rs m 67,352 67,180
Dividends per share (Unadj.) Rs 1.8 2.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for CARBORUNDUM UNIVERSAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.8x during FY18, from 2.4x 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 36.7x during FY18, from 14.4x 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 improved and stood at 14.0% during FY18, from 13.3% 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 improved and stood at 21.0% during FY18, from 20.2% 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 improved and stood at 10.9% during FY18, from 10.5% 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 2.4 2.8
Debtors’ Days Days 66 73
Interest coverage x 14.4 36.7
Debt to equity ratio x 0.0 0.0
Return on assets % 10.5 10.9
Return on equity % 13.3 14.0
Return on capital employed % 20.2 21.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how CARBORUNDUM UNIVERSAL has performed over the last 5 years, please visit here.

CARBORUNDUM UNIVERSAL Share Price Performance

Over the last one year, CARBORUNDUM UNIVERSAL share price has moved up from Rs 382.0 to Rs 357.0, registering a loss of Rs 25.0 or around 6.5%.

Overall, the S&P BSE SENSEX is up 6.6% over the year.

(To know more, check out historical annual results for CARBORUNDUM UNIVERSAL and quarterly results for CARBORUNDUM UNIVERSAL)

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