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ELECON ENGINEERING 2017-18 Annual Report Analysis
Sat, 31 Mar

ELECON ENGINEERING 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.

ELECON ENGINEERING Income Statement Analysis

  • Operating income during the year rose 3.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 27.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.7% in FY18 as against 15.4% in FY17.
  • Depreciation charges decreased by 0.6% and finance costs decreased by 16.2% YoY, respectively.
  • Other income declined by 36.1% YoY.
  • Net profit for the year declined by 28.3% YoY.
  • Net profit margins during the year declined from 0.6% in FY17 to 0.4% in FY18.

ELECON ENGINEERING Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 11,284 11,720 3.9%
Other income Rs m 86 55 -36.1%
Total Revenues Rs m 11,370 11,774 3.6%
Gross profit Rs m 1,742 1,256 -27.9%
Depreciation Rs m 532 529 -0.6%
Interest Rs m 898 753 -16.2%
Profit before tax Rs m 398 29 -92.7%
Tax Rs m 331 -19 -105.6%
Profit after tax Rs m 67 48 -28.3%
Gross profit margin % 15.4 10.7
Effective tax rate % 83.2 -64.0
Net profit margin % 0.6 0.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ELECON ENGINEERING Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 11 billion as compared to Rs 11 billion in FY17, thereby witnessing an increase of 1.9%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY17, a growth of 34.1%.
  • Current assets rose 9% and stood at Rs 12 billion, while fixed assets fell 4% and stood at Rs 9 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 22 billion as against Rs 21 billion during FY17, thereby witnessing a growth of 3%.

ELECON ENGINEERING Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 7,099 7,089 -0.1
 
Current Liabilities Rs m 11,195 11,404 1.9
Long-term Debt Rs m 1,394 1,870 34.1
Total Liabilities Rs m 20,869 21,560 3.3
 
Current assets Rs m 11,246 12,275 9.1
Fixed Assets Rs m 9,623 9,286 -3.5
Total Assets Rs m 20,869 21,560 3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ELECON ENGINEERING Cash Flow Statement Analysis

  • ELECON ENGINEERING's cash flow from operating activities (CFO) during FY18 stood at Rs 704 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -513 million, an improvement of 637.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -635 million, an improvement of 53% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -444 million from the Rs 469 million net cash flows seen during FY17.

ELECON ENGINEERING 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 1,881 704 -62.6%
Cash Flow from Investing Activities Rs m -70 -513 -
Cash Flow from Financing Activities Rs m -1,342 -635 -
Net Cash Flow Rs m 469 -444 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ELECON ENGINEERING

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an decline from the EPS of Rs 0.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 77.0, stands at 140.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.4 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 100.6 104.5
TTM Earnings per share Rs 0.6 0.4
Diluted earnings per share Rs 0.6 0.4
Price to Cash Flow x 9.9 15.4
TTM P/E ratio x 43.6 140.2
Price / Book Value ratio x 0.9 1.3
Market Cap Rs m 6,698 8,892
Dividends per share (Unadj.) Rs 0.5 0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ELECON ENGINEERING

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 1.0x 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 1.0x during FY18, from 1.4x 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 0.7% during FY18, from 0.9% 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 8.7% during FY18, from 15.3% 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 3.7% during FY18, from 4.6% 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 1.0 1.1
Debtors’ Days Days 2,032 2,091
Interest coverage x 1.4 1.0
Debt to equity ratio x 0.2 0.3
Return on assets % 4.6 3.7
Return on equity % 0.9 0.7
Return on capital employed % 15.3 8.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how ELECON ENGINEERING has performed over the last 5 years, please visit here.

ELECON ENGINEERING Share Price Performance

Over the last one year, ELECON ENGINEERING share price has moved up from Rs 52.9 to Rs 77.0, registering a gain of Rs 24.1 or around 45.6%.

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 ELECON ENGINEERING and quarterly results for ELECON ENGINEERING)

Annual Report FAQs

What is the current share price of ELECON ENGINEERING?

ELECON ENGINEERING currently trades at Rs 848.1 per share. You can check out the latest share price performance of ELECON ENGINEERING here...

What was the revenue of ELECON ENGINEERING in FY18? How does it compare to earlier years?

The revenues of ELECON ENGINEERING stood at Rs 11,774 m in FY18, which was up 3.6% compared to Rs 11,370 m reported in FY17.

ELECON ENGINEERING's revenue has fallen from Rs 12,248 m in FY16 to Rs 11,774 m in FY18.

Over the past 3 years, the revenue of ELECON ENGINEERING has grown at a CAGR of -2.0%.

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

The net profit of ELECON ENGINEERING stood at Rs 48 m in FY18, which was down -28.3% compared to Rs 67 m reported in FY17.

This compares to a net profit of Rs 344 m in FY16.

Over the past 3 years, ELECON ENGINEERING net profit has grown at a CAGR of -62.7%.

What does the cash flow statement of ELECON ENGINEERING 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 ELECON ENGINEERING reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 704 m as compared to Rs 1,881 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -513 m as compared to Rs -70 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -635 m as compared to Rs -1,342 m in FY17.

Here's the cash flow statement of ELECON ENGINEERING for the past 3 years.

(Rs m)FY16FY17FY18
From Operations1221,881704
From Investments68-70-513
From Financial Activity-52-1,342-635
Net Cashflow139469-444

What does the Key Ratio analysis of ELECON ENGINEERING 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 ELECON ENGINEERING reveals:

  • Operating profit margins witnessed a fall and stood at 10.7% in FY18 as against 15.4% in FY17.
  • Net profit margins declined from 0.6% in FY17 to 0.4% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.3 as compared to 0.2 in FY17.

Here's the ratio/financial analysis of ELECON ENGINEERING for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)14.415.410.7
Net Profit Margin (%)2.90.60.4
Debt to Equity Ratio (x)0.30.20.3

Read: Latest Annual Report Analysis of ELECON ENGINEERING

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