DALMIA BHARAT SUG. 2017-18 Annual Report Analysis

Sat, 31 Mar

DALMIA BHARAT SUG. 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.

DALMIA BHARAT SUG. Income Statement Analysis

• Operating income during the year rose 37.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 38.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.6% in FY18 as against 23.5% in FY17.
• Depreciation charges decreased by 3.2% and finance costs decreased by 32.2% YoY, respectively.
• Other income grew by 6.0% YoY.
• Net profit for the year declined by 34.3% YoY.
• Net profit margins during the year declined from 11.6% in FY17 to 5.5% in FY18.

DALMIA BHARAT SUG. Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	16,079	22,139	37.7%
Other income	Rs m	238	253	6.0%
Total Revenues	Rs m	16,317	22,391	37.2%
Gross profit	Rs m	3,778	2,342	-38.0%
Depreciation	Rs m	556	538	-3.2%
Interest	Rs m	1,025	695	-32.2%
Profit before tax	Rs m	2,436	1,362	-44.1%
Tax	Rs m	573	139	-75.8%
Profit after tax	Rs m	1,863	1,223	-34.3%
Gross profit margin	%	23.5	10.6
Effective tax rate	%	23.5	10.2
Net profit margin	%	11.6	5.5

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DALMIA BHARAT SUG. Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 9 billion as compared to Rs 11 billion in FY17, thereby witnessing an decrease of -20.4%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY17, a fall of 5.1%.
• Current assets fell 10% and stood at Rs 13 billion, while fixed assets rose 7% and stood at Rs 16 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 29 billion as against Rs 29 billion during FY17, thereby witnessing a fall of 1%.

DALMIA BHARAT SUG. Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	12,614	15,046	19.3
Current Liabilities	Rs m	11,079	8,821	-20.4
Long-term Debt	Rs m	3,961	3,757	-5.1
Total Liabilities	Rs m	29,350	29,129	-0.8
Current assets	Rs m	14,021	12,688	-9.5
Fixed Assets	Rs m	15,329	16,441	7.3
Total Assets	Rs m	29,350	29,129	-0.8

DALMIA BHARAT SUG. Cash Flow Statement Analysis

• DALMIA BHARAT SUG.'s cash flow from operating activities (CFO) during FY18 stood at Rs 7 billion, an improvement of 356.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion, an improvement of 23.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 6 million from the Rs 131 million net cash flows seen during FY17.

DALMIA BHARAT SUG. 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	1,548	7,062	356.3%
Cash Flow from Investing Activities	Rs m	-1,439	-1,781	-
Cash Flow from Financing Activities	Rs m	22	-5,275	-
Net Cash Flow	Rs m	131	6	-95.1%

Current Valuations for DALMIA BHARAT SUG.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.1, an decline from the EPS of Rs 23.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 64.3, stands at 3.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 5.9 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	198.7	273.5
TTM Earnings per share	Rs	23.0	15.1
Diluted earnings per share	Rs	23.0	15.1
Price to Cash Flow	x	5.8	5.9
TTM P/E ratio	x	7.6	3.9
Price / Book Value ratio	x	0.9	0.7
Market Cap	Rs m	11,599	10,415
Dividends per share (Unadj.)	Rs	2.0	0.0

Ratio Analysis for DALMIA BHARAT SUG.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 1.3x 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 3.0x during FY18, from 3.4x 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 declined and down at 8.1% during FY18, from 14.8% 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 10.9% during FY18, from 20.9% 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 6.6% during FY18, from 9.8% 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	1.3	1.4
Debtors’ Days	Days	3	1
Interest coverage	x	3.4	3.0
Debt to equity ratio	x	0.3	0.2
Return on assets	%	9.8	6.6
Return on equity	%	14.8	8.1
Return on capital employed	%	20.9	10.9

To see how DALMIA BHARAT SUG. has performed over the last 5 years, please visit here.

DALMIA BHARAT SUG. Share Price Performance

Over the last one year, DALMIA BHARAT SUG. share price has moved down from Rs 173.2 to Rs 64.3, registering a loss of Rs 108.9 or around 62.9%.

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

(To know more, check out historical annual results for DALMIA BHARAT SUG. and quarterly results for DALMIA BHARAT SUG.)

Read: Latest Annual Report Analysis of DALMIA BHARAT SUG.