CUMMINS 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.
No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | % Change | |
---|---|---|---|---|
Net Sales | Rs m | 47,550 | 50,333 | 5.9% |
Other income | Rs m | 1,444 | 1,619 | 12.1% |
Total Revenues | Rs m | 48,994 | 51,952 | 6.0% |
Gross profit | Rs m | 8,011 | 7,885 | -1.6% |
Depreciation | Rs m | 855 | 944 | 10.4% |
Interest | Rs m | 171 | 152 | -11.0% |
Profit before tax | Rs m | 8,430 | 8,408 | -0.3% |
Tax | Rs m | 1,878 | 2,147 | 14.3% |
Profit after tax | Rs m | 6,552 | 6,260 | -4.4% |
Gross profit margin | % | 16.8 | 15.7 | |
Effective tax rate | % | 22.3 | 25.5 | |
Net profit margin | % | 13.8 | 12.4 |
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No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | % Change | |
---|---|---|---|---|
Networth | Rs m | 38,711 | 41,186 | 6.4 |
Current Liabilities | Rs m | 12,159 | 14,560 | 19.7 |
Long-term Debt | Rs m | 0 | 0 | 0.0 |
Total Liabilities | Rs m | 52,143 | 57,148 | 9.6 |
Current assets | Rs m | 26,882 | 32,301 | 20.2 |
Fixed Assets | Rs m | 25,262 | 24,847 | -1.6 |
Total Assets | Rs m | 52,143 | 57,148 | 9.6 |
Particulars | No. of months | 12 | 12 | % Change |
---|---|---|---|---|
Year Ending | Mar-17 | Mar-18 | ||
Cash Flow from Operating Activities | Rs m | 7,482 | 6,319 | -15.5% |
Cash Flow from Investing Activities | Rs m | -4,868 | -1,340 | - |
Cash Flow from Financing Activities | Rs m | -2,265 | -4,696 | - |
Net Cash Flow | Rs m | 386 | 284 | -26.5% |
No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | |
---|---|---|---|
Sales per share (Unadj.) | Rs | 171.5 | 181.6 |
TTM Earnings per share | Rs | 23.6 | 22.6 |
Diluted earnings per share | Rs | 23.6 | 22.6 |
Price to Cash Flow | x | 35.5 | 34.0 |
TTM P/E ratio | x | 35.8 | 27.4 |
Price / Book Value ratio | x | 6.1 | 5.9 |
Market Cap | Rs m | 236,479 | 244,934 |
Dividends per share (Unadj.) | Rs | 14.0 | 15.0 |
Current Ratio: The company's current ratio improved and stood at 2.2x during FY18, from 2.2x 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 improved and stood at 56.4x during FY18, from 50.4x 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.
Return on Equity (ROE): The ROE for the company declined and down at 15.2% during FY18, from 16.9% 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 20.8% during FY18, from 22.2% 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 declined and down at 11.2% during FY18, from 12.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.
No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | |
---|---|---|---|
Current ratio | x | 2.2 | 2.2 |
Debtors’ Days | Days | 740 | 970 |
Interest coverage | x | 50.4 | 56.4 |
Debt to equity ratio | x | 0.0 | 0.0 |
Return on assets | % | 12.9 | 11.2 |
Return on equity | % | 16.9 | 15.2 |
Return on capital employed | % | 22.2 | 20.8 |
To see how CUMMINS INDIA has performed over the last 5 years, please visit here.
Over the last one year, CUMMINS INDIA share price has moved down from Rs 947.9 to Rs 701.2, registering a loss of Rs 246.7 or around 26.0%.
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 CUMMINS INDIA and quarterly results for CUMMINS INDIA)
CUMMINS INDIA currently trades at Rs 3,234.8 per share. You can check out the latest share price performance of CUMMINS INDIA here...
The revenues of CUMMINS INDIA stood at Rs 51,952 m in FY18, which was up 6.0% compared to Rs 48,994 m reported in FY17.
CUMMINS INDIA's revenue has grown from Rs 38,060 m in FY14 to Rs 51,952 m in FY18.
Over the past 5 years, the revenue of CUMMINS INDIA has grown at a CAGR of 8.1%.
The net profit of CUMMINS INDIA stood at Rs 6,260 m in FY18, which was down -4.4% compared to Rs 6,552 m reported in FY17.
This compares to a net profit of Rs 6,284 m in FY16 and a net profit of Rs 7,574 m in FY15.
Over the past 5 years, CUMMINS INDIA net profit has grown at a CAGR of 1.1%.
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 CUMMINS INDIA reveals:
Here's the cash flow statement of CUMMINS INDIA for the past 5 years.
(Rs m) | FY14 | FY15 | FY16 | FY17 | FY18 |
---|---|---|---|---|---|
From Operations | 3,611 | 5,895 | 6,955 | 7,482 | 6,319 |
From Investments | 552 | -1,459 | -2,124 | -4,868 | -1,340 |
From Financial Activity | -4,258 | -4,443 | -4,710 | -2,265 | -4,696 |
Net Cashflow | -95 | -7 | 99 | 386 | 284 |
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 CUMMINS INDIA reveals:
Here's the ratio/financial analysis of CUMMINS INDIA for the past 5 years.
FY14 | FY15 | FY16 | FY17 | FY18 | |
---|---|---|---|---|---|
Operating Profit Margin (%) | 19.2 | 18.0 | 17.7 | 16.8 | 15.7 |
Net Profit Margin (%) | 16.5 | 16.7 | 14.5 | 13.8 | 12.4 |
Debt to Equity Ratio (x) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Read: Latest Annual Report Analysis of CUMMINS INDIA
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1 Responses to "CUMMINS INDIA 2017-18 Annual Report Analysis"
Harit Jatish Shah
Aug 6, 2019This is more a narration rather than any kind of detailed annual report analysis. In the balance sheet analysis for example, there is no explanation as to the reasons for the rise in current assets and current liabilities, no proper explanation regarding the components of current assets (debtors, inventory, cash etc) or current liabilities (creditors, provisions etc). It is just stating what happened without any kind of reasoning as to why it has happened! There is no segment on corporate governance, any analysis on number of independent directors and analysis of directors fees, changes in directors during the year if any, no reasoning as to why RoE reduced in the year. This really cannot be called analysis aa such - it's more like dumb reporting with minimal analysis.