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EROS INTERNATIONAL 2017-18 Annual Report Analysis

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EROS INTERNATIONAL 2017-18 Annual Report Analysis
Tue, 18 Dec

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 decreased by 3.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 34.2% in FY18 as against 24.3% in FY17.
  • Depreciation charges increased by 7.3% and finance costs increased by 47.7% YoY, respectively.
  • Other income grew by 9.4% YoY.
  • Net profit for the year declined by 5.0% YoY.
  • Net profit margins during the year grew from 16.8% in FY17 to 22.9% 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 456 499 9.4%
Total Revenues Rs m 14,453 10,100 -30.1%
Gross profit Rs m 3,408 3,283 -3.7%
Depreciation Rs m 96 103 7.3%
Interest Rs m 545 805 47.7%
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 34.2
Effective tax rate % 24.5 19.5
Net profit margin % 16.8 22.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 fell 1% and stood at Rs 27 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 20,091 22,430 11.6
 
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 27,271 27,043 -0.8
Total Assets Rs m 36,758 37,868 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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: Company Reports, Regulatory Filings, 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 88.9, stands at 3.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 2.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.4 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 26.3 25.0
Price to Cash Flow x 3.3 3.4
TTM P/E ratio x 3.2 3.1
Price / Book Value ratio x 1.1 0.9
Market Cap Rs m 8,339 8,219
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 4.6x during FY18, from 6.9x 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 10.3% during FY18, from 12.1% 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 15.4% during FY18, from 17.5% 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 8.2% during FY18, from 8.1% 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 164 266
Interest coverage x 6.9 4.6
Debt to equity ratio x 0.1 0.1
Return on assets % 8.1 8.2
Return on equity % 12.1 10.3
Return on capital employed % 17.5 15.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 up from Rs 202.5 to Rs 88.9, registering a loss of Rs 113.7 or around 56.1%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,214.9 (down 1.1%). Over the last one year it has moved up from 6,185.9 to 7,214.9, a gain of 1,029 points (up 16.6%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

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

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EROS INTERNATIONAL Announces Quarterly Results (3QFY19); Net Profit Down 7.4% (Quarterly Result Update)

Feb 12, 2019 | Updated on Feb 12, 2019

For the quarter ended December 2018, EROS INTERNATIONAL has posted a net profit of Rs 622 m (down 7.4% YoY). Sales on the other hand came in at Rs 3 bn (up 52.9% YoY). Read on for a complete analysis of EROS INTERNATIONAL's quarterly results.

EROS INTERNATIONAL Announces Quarterly Results (2QFY19); Net Profit Up 34.4% (Quarterly Result Update)

Nov 6, 2018 | Updated on Nov 6, 2018

For the quarter ended September 2018, EROS INTERNATIONAL has posted a net profit of Rs 773 m (up 34.4% YoY). Sales on the other hand came in at Rs 3 bn (up 9.2% YoY). Read on for a complete analysis of EROS INTERNATIONAL's quarterly results.

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