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CG POWER & INDUSTRIAL 2017-18 Annual Report Analysis
Sat, 31 Mar

CG POWER & INDUSTRIAL 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.

CG POWER & INDUSTRIAL Income Statement Analysis

  • Operating income during the year fell 3.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 54.6% YoY during the fiscal. Operating profit margins witnessed a growth and down at 1.2% in FY18 as against 2.6% in FY17.
  • Depreciation charges increased by 76.2% and finance costs increased by 129.1% YoY, respectively.
  • Other income grew by 97.1% YoY.
  • Net profit for the year grew by 45.8% YoY.
  • Net profit margins during the year declined from 5.7% in FY17 to 8.6% in FY18.

CG POWER & INDUSTRIAL Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 86,040 82,651 -3.9%
Other income Rs m 676 1,332 97.1%
Total Revenues Rs m 86,716 83,983 -3.2%
Gross profit Rs m -2,218 -1,008 -54.6%
Depreciation Rs m 1,429 2,519 76.2%
Interest Rs m 1,861 4,263 129.1%
Profit before tax Rs m -4,833 -6,458 33.6%
Tax Rs m 58 670 1,065.4%
Profit after tax Rs m -4,891 -7,128 45.8%
Gross profit margin % -2.6 -1.2
Effective tax rate % -1.2 -10.4
Net profit margin % -5.7 -8.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

CG POWER & INDUSTRIAL Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 56 billion as compared to Rs 46 billion in FY17, thereby witnessing an increase of 21.0%.
  • Long-term debt stood at Rs 15 billion as compared to Rs 9 billion during FY17, a growth of 61.3%.
  • Current assets fell 32% and stood at Rs 48 billion, while fixed assets rose 99% and stood at Rs 61 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 108 billion as against Rs 101 billion during FY17, thereby witnessing a growth of 8%.

CG POWER & INDUSTRIAL Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 41,027 28,828 -29.7
 
Current Liabilities Rs m 45,959 55,600 21.0
Long-term Debt Rs m 9,263 14,945 61.3
Total Liabilities Rs m 100,547 108,108 7.5
 
Current assets Rs m 70,176 47,574 -32.2
Fixed Assets Rs m 30,372 60,534 99.3
Total Assets Rs m 100,547 108,108 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



CG POWER & INDUSTRIAL Cash Flow Statement Analysis

  • CG POWER & INDUSTRIAL's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 5 billion, an improvement of 923% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -1 billion from the Rs 71 million net cash flows seen during FY17.

CG POWER & INDUSTRIAL 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 -5,399 3,796 -
Cash Flow from Investing Activities Rs m 4,968 -10,309 -
Cash Flow from Financing Activities Rs m 502 5,137 922.9%
Net Cash Flow Rs m 71 -1,375 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for CG POWER & INDUSTRIAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -11.4, an decline from the EPS of Rs -7.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 77.8, stands at 34.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at -11.3 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 137.3 131.9
TTM Earnings per share Rs -7.8 -11.4
Diluted earnings per share Rs -3.4 -4.9
Price to Cash Flow x -32.3 -11.3
TTM P/E ratio x 58.8 34.6
Price / Book Value ratio x 1.0 1.8
Market Cap Rs m 42,822 52,208
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for CG POWER & INDUSTRIAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY18, from 1.5x 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 -0.5x during FY18, from -1.6x 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 -24.7% during FY18, from -11.9% 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 improved and stood at -5.0% during FY18, from -5.9% 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 improved and stood at -2.7% during FY18, from -3.0% 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 1.5 0.9
Debtors’ Days Days 10 11
Interest coverage x -1.6 -0.5
Debt to equity ratio x 0.2 0.5
Return on assets % -3.0 -2.7
Return on equity % -11.9 -24.7
Return on capital employed % -5.9 -5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how CG POWER & INDUSTRIAL has performed over the last 5 years, please visit here.

CG POWER & INDUSTRIAL Share Price Performance

Over the last one year, CG POWER & INDUSTRIAL share price has moved up from Rs 77.6 to Rs 77.8, registering a gain of Rs 0.2 or around 0.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

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

(To know more, check out historical annual results for CG POWER & INDUSTRIAL and quarterly results for CG POWER & INDUSTRIAL)

Annual Report FAQs

What is the current share price of CG POWER & INDUSTRIAL?

CG POWER & INDUSTRIAL currently trades at Rs 540.0 per share. You can check out the latest share price performance of CG POWER & INDUSTRIAL here...

What was the revenue of CG POWER & INDUSTRIAL in FY18? How does it compare to earlier years?

The revenues of CG POWER & INDUSTRIAL stood at Rs 83,983 m in FY18, which was down -3.2% compared to Rs 86,716 m reported in FY17.

CG POWER & INDUSTRIAL's revenue has fallen from Rs 134,867 m in FY14 to Rs 83,983 m in FY18.

Over the past 5 years, the revenue of CG POWER & INDUSTRIAL has grown at a CAGR of -11.2%.

What was the net profit of CG POWER & INDUSTRIAL in FY18? How does it compare to earlier years?

The net loss of CG POWER & INDUSTRIAL stood at Rs -7,128 m in FY18, which was up 45.8% compared to Rs -4,891 m reported in FY17.

This compares to a net loss of Rs -4,618 m in FY16 and a net profit of Rs 221 m in FY15.

Over the past 5 years, CG POWER & INDUSTRIAL net profit has grown at a CAGR of NaN%.

What does the cash flow statement of CG POWER & INDUSTRIAL reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of CG POWER & INDUSTRIAL reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 3,796 m as compared to Rs -5,399 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -10,309 m as compared to Rs 4,968 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs 5,137 m as compared to Rs 502 m in FY17.

Here's the cash flow statement of CG POWER & INDUSTRIAL for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations3,196-6,723-608-5,3993,796
From Investments-9784,2854,3204,968-10,309
From Financial Activity991,572-2,2245025,137
Net Cashflow2,316-8661,48871-1,375

What does the Key Ratio analysis of CG POWER & INDUSTRIAL reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of CG POWER & INDUSTRIAL reveals:

  • Operating profit margins witnessed a growth and down at 1.2% in FY18 as against 2.6% in FY17.
  • Net profit margins declined from 5.7% in FY17 to 8.6% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.5 as compared to 0.2 in FY17.

Here's the ratio/financial analysis of CG POWER & INDUSTRIAL for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)4.68.2-1.6-2.6-1.2
Net Profit Margin (%)2.00.4-4.2-5.7-8.6
Debt to Equity Ratio (x)0.40.30.20.20.5

Read: Latest Annual Report Analysis of CG POWER & INDUSTRIAL

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1 Responses to "CG POWER & INDUSTRIAL 2017-18 Annual Report Analysis"

Ajesh

Oct 22, 2019

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