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EROS INTERNATIONAL 2017-18 Annual Report Analysis
Sat, 31 Mar

EROS INTERNATIONAL 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.

EROS INTERNATIONAL Income Statement Analysis

  • Operating income during the year fell 31.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 81.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 64.2% in FY18 as against 24.3% in FY17.
  • Depreciation charges increased by 3017.5% and finance costs increased by 46.9% YoY, respectively.
  • Other income grew by 10.1% YoY.
  • Net profit for the year declined by 5.0% YoY.
  • Net profit margins during the year grew from 17.4% in FY17 to 24.1% in FY18.

EROS INTERNATIONAL Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 13,997 9,602 -31.4%
Other income Rs m 477 525 10.1%
Total Revenues Rs m 14,474 10,127 -30.0%
Gross profit Rs m 3,408 6,167 81.0%
Depreciation Rs m 96 2,987 3,017.5%
Interest Rs m 566 832 46.9%
Profit before tax Rs m 3,222 2,874 -10.8%
Tax Rs m 789 561 -28.9%
Profit after tax Rs m 2,433 2,312 -5.0%
Gross profit margin % 24.3 64.2
Effective tax rate % 24.5 19.5
Net profit margin % 17.4 24.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

EROS INTERNATIONAL Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 11 billion as compared to Rs 13 billion in FY17, thereby witnessing an decrease of -11.6%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY17, a growth of 0.1%.
  • Current assets rose 7% and stood at Rs 9 billion, while fixed assets rose 2% and stood at Rs 29 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 38 billion as against Rs 37 billion during FY17, thereby witnessing a growth of 3%.

EROS INTERNATIONAL Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 19,826 22,272 12.3
 
Current Liabilities Rs m 12,615 11,154 -11.6
Long-term Debt Rs m 1,494 1,495 0.1
Total Liabilities Rs m 36,758 37,868 3.0
 
Current assets Rs m 8,410 9,020 7.3
Fixed Assets Rs m 28,348 28,848 1.8
Total Assets Rs m 36,758 37,868 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



EROS INTERNATIONAL Cash Flow Statement Analysis

  • EROS INTERNATIONAL's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 0.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -330 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 83 million from the Rs -269 million net cash flows seen during FY17.

EROS INTERNATIONAL 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 2,352 2,353 0.1%
Cash Flow from Investing Activities Rs m -5,012 -1,939 -
Cash Flow from Financing Activities Rs m 2,382 -330 -
Net Cash Flow Rs m -269 83 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for EROS INTERNATIONAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.3, an decline from the EPS of Rs 25.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 166.4, stands at 6.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.0 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 149.1 101.1
TTM Earnings per share Rs 25.9 24.3
Diluted earnings per share Rs 25.4 24.1
Price to Cash Flow x 10.4 4.0
TTM P/E ratio x 10.3 6.9
Price / Book Value ratio x 1.1 0.9
Market Cap Rs m 21,519 21,155
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for EROS INTERNATIONAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.8x during FY18, from 0.7x 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 4.5x during FY18, from 6.7x 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 declined and down at 10.4% during FY18, from 12.3% 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 declined and down at 15.6% during FY18, from 17.8% 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 8.3% during FY18, from 8.2% 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 0.7 0.8
Debtors’ Days Days 1,620 2,634
Interest coverage x 6.7 4.5
Debt to equity ratio x 0.1 0.1
Return on assets % 8.2 8.3
Return on equity % 12.3 10.4
Return on capital employed % 17.8 15.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how EROS INTERNATIONAL has performed over the last 5 years, please visit here.

EROS INTERNATIONAL Share Price Performance

Over the last one year, EROS INTERNATIONAL share price has moved down from Rs 275.4 to Rs 166.4, registering a loss of Rs 109.1 or around 39.6%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 6,513.3 (down 0.7%). Over the last one year it has moved up from 5,771.5 to 6,513.3, a gain of 742 points (up 12.9%).

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

(To know more, check out historical annual results for EROS INTERNATIONAL and quarterly results for EROS INTERNATIONAL)

Annual Report FAQs

What is the current share price of EROS INTERNATIONAL?

EROS INTERNATIONAL currently trades at Rs 17.9 per share. You can check out the latest share price performance of EROS INTERNATIONAL here...

What was the revenue of EROS INTERNATIONAL in FY18? How does it compare to earlier years?

The revenues of EROS INTERNATIONAL stood at Rs 10,127 m in FY18, which was down -30.0% compared to Rs 14,474 m reported in FY17.

EROS INTERNATIONAL's revenue has fallen from Rs 11,447 m in FY14 to Rs 10,127 m in FY18.

Over the past 5 years, the revenue of EROS INTERNATIONAL has grown at a CAGR of -3.0%.

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

The net profit of EROS INTERNATIONAL stood at Rs 2,312 m in FY18, which was down -5.0% compared to Rs 2,433 m reported in FY17.

This compares to a net profit of Rs 2,421 m in FY16 and a net profit of Rs 2,470 m in FY15.

Over the past 5 years, EROS INTERNATIONAL net profit has grown at a CAGR of 4.6%.

What does the cash flow statement of EROS INTERNATIONAL 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 EROS INTERNATIONAL reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 2,353 m as compared to Rs 2,352 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -1,939 m as compared to Rs -5,012 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -330 m as compared to Rs 2,382 m in FY17.

Here's the cash flow statement of EROS INTERNATIONAL for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations8,7179,33311,7052,3522,353
From Investments-7,858-10,787-9,849-5,012-1,939
From Financial Activity68328-1,8692,382-330
Net Cashflow919-1,103-11-26983

What does the Key Ratio analysis of EROS INTERNATIONAL 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 EROS INTERNATIONAL reveals:

  • Operating profit margins witnessed a fall and down at 64.2% in FY18 as against 24.3% in FY17.
  • Net profit margins grew from 17.4% in FY17 to 24.1% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.1 as compared to 0.1 in FY17.

Here's the ratio/financial analysis of EROS INTERNATIONAL for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)26.424.520.324.364.2
Net Profit Margin (%)17.017.415.317.424.1
Debt to Equity Ratio (x)0.10.10.10.10.1

Read: Latest Annual Report Analysis of EROS INTERNATIONAL

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