Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

DREDGING CORP 2017-18 Annual Report Analysis
Sat, 31 Mar

DREDGING CORP 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.

DREDGING CORP Income Statement Analysis

  • Operating income during the year rose 1.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 16.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.8% in FY18 as against 19.9% in FY17.
  • Depreciation charges increased by 13.6% and finance costs increased by 11.1% YoY, respectively.
  • Other income grew by 46.5% YoY.
  • Net profit for the year grew by 131.5% YoY.
  • Net profit margins during the year grew from 1.3% in FY17 to 2.9% in FY18.

DREDGING CORP Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 5,851 5,919 1.1%
Other income Rs m 138 202 46.5%
Total Revenues Rs m 5,990 6,121 2.2%
Gross profit Rs m 1,163 1,349 16.0%
Depreciation Rs m 996 1,132 13.6%
Interest Rs m 182 202 11.1%
Profit before tax Rs m 123 218 77.3%
Tax Rs m 49 46 -5.0%
Profit after tax Rs m 74 171 131.5%
Gross profit margin % 19.9 22.8
Effective tax rate % 39.7 21.3
Net profit margin % 1.3 2.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

DREDGING CORP Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 4 billion as compared to Rs 5 billion in FY17, thereby witnessing an decrease of -13.7%.
  • Long-term debt down at Rs 7 billion as compared to Rs 7 billion during FY17, a fall of 4.0%.
  • Current assets fell 10% and stood at Rs 8 billion, while fixed assets rose 1% and stood at Rs 19 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 26 billion as against Rs 27 billion during FY17, thereby witnessing a fall of 2%.

DREDGING CORP Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 15,206 15,441 1.5
 
Current Liabilities Rs m 4,811 4,152 -13.7
Long-term Debt Rs m 7,002 6,724 -4.0
Total Liabilities Rs m 27,103 26,459 -2.4
 
Current assets Rs m 8,677 7,822 -9.9
Fixed Assets Rs m 18,426 18,637 1.1
Total Assets Rs m 27,103 26,459 -2.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



DREDGING CORP Cash Flow Statement Analysis

  • DREDGING CORP's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion, an improvement of 58.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 10 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion, an improvement of 10% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 120 million from the Rs -616 million net cash flows seen during FY17.

DREDGING CORP 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 869 1,378 58.5%
Cash Flow from Investing Activities Rs m -76 10 -
Cash Flow from Financing Activities Rs m -1,409 -1,268 -
Net Cash Flow Rs m -616 120 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for DREDGING CORP

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.1, an improvement from the EPS of Rs 2.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 581.6, stands at 95.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 2.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.5 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 209.0 211.4
TTM Earnings per share Rs 2.6 6.1
Diluted earnings per share Rs 2.6 6.1
Price to Cash Flow x 18.0 15.5
TTM P/E ratio x 259.8 95.0
Price / Book Value ratio x 1.0 1.3
Market Cap Rs m 15,136 20,238
Dividends per share (Unadj.) Rs 0.0 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for DREDGING CORP

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.9x during FY18, from 1.8x 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 2.1x during FY18, from 1.7x 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 1.1% during FY18, from 0.5% 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 1.9% during FY18, from 1.4% 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 1.4% during FY18, from 0.9% 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 1.8 1.9
Debtors’ Days Days 1,773 1,468
Interest coverage x 1.7 2.1
Debt to equity ratio x 0.5 0.4
Return on assets % 0.9 1.4
Return on equity % 0.5 1.1
Return on capital employed % 1.4 1.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how DREDGING CORP has performed over the last 5 years, please visit here.

DREDGING CORP Share Price Performance

Over the last one year, DREDGING CORP share price has moved down from Rs 687.6 to Rs 581.6, registering a loss of Rs 106.0 or around 15.4%.

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

(To know more, check out historical annual results for DREDGING CORP and quarterly results for DREDGING CORP)

Annual Report FAQs

What is the current share price of DREDGING CORP?

DREDGING CORP currently trades at Rs 676.5 per share. You can check out the latest share price performance of DREDGING CORP here...

What was the revenue of DREDGING CORP in FY18? How does it compare to earlier years?

The revenues of DREDGING CORP stood at Rs 6,121 m in FY18, which was up 2.2% compared to Rs 5,990 m reported in FY17.

DREDGING CORP's revenue has fallen from Rs 6,812 m in FY16 to Rs 6,121 m in FY18.

Over the past 3 years, the revenue of DREDGING CORP has grown at a CAGR of -5.2%.

What was the net profit of DREDGING CORP in FY18? How does it compare to earlier years?

The net profit of DREDGING CORP stood at Rs 171 m in FY18, which was up 131.5% compared to Rs 74 m reported in FY17.

This compares to a net profit of Rs 419 m in FY16.

Over the past 3 years, DREDGING CORP net profit has grown at a CAGR of -36.0%.

What does the cash flow statement of DREDGING CORP 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 DREDGING CORP reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 1,378 m as compared to Rs 869 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs 10 m as compared to Rs -76 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -1,268 m as compared to Rs -1,409 m in FY17.

Here's the cash flow statement of DREDGING CORP for the past 3 years.

(Rs m)FY16FY17FY18
From Operations1,5808691,378
From Investments-175-7610
From Financial Activity-1,267-1,409-1,268
Net Cashflow139-616120

What does the Key Ratio analysis of DREDGING CORP 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 DREDGING CORP reveals:

  • Operating profit margins witnessed a fall and down at 22.8% in FY18 as against 19.9% in FY17.
  • Net profit margins grew from 1.3% in FY17 to 2.9% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.4 as compared to 0.5 in FY17.

Here's the ratio/financial analysis of DREDGING CORP for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)21.119.922.8
Net Profit Margin (%)6.31.32.9
Debt to Equity Ratio (x)0.60.50.4

Read: Latest Annual Report Analysis of DREDGING CORP

 

Equitymaster requests your view! Post a comment on "DREDGING CORP 2017-18 Annual Report Analysis". Click here!