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ELGI EQUIPMENTS 2017-18 Annual Report Analysis
Sat, 31 Mar

ELGI EQUIPMENTS 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.

ELGI EQUIPMENTS Income Statement Analysis

  • Operating income during the year rose 22.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 24.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.0% in FY18 as against 10.8% in FY17.
  • Depreciation charges decreased by 1.8% and finance costs decreased by 20.9% YoY, respectively.
  • Other income declined by 5.7% YoY.
  • Net profit for the year grew by 29.3% YoY.
  • Net profit margins during the year grew from 5.6% in FY17 to 5.9% in FY18.

ELGI EQUIPMENTS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 13,022 15,884 22.0%
Other income Rs m 121 114 -5.7%
Total Revenues Rs m 13,143 15,998 21.7%
Gross profit Rs m 1,408 1,748 24.2%
Depreciation Rs m 446 438 -1.8%
Interest Rs m 93 74 -20.9%
Profit before tax Rs m 989 1,350 36.5%
Tax Rs m 264 413 56.2%
Profit after tax Rs m 724 937 29.3%
Gross profit margin % 10.8 11.0
Effective tax rate % 26.7 30.6
Net profit margin % 5.6 5.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ELGI EQUIPMENTS Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 5 billion as compared to Rs 4 billion in FY17, thereby witnessing an increase of 26.2%.
  • Long-term debt down at Rs 603 million as compared to Rs 966 million during FY17, a fall of 37.6%.
  • Current assets rose 22% and stood at Rs 8 billion, while fixed assets rose 1% and stood at Rs 5 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 13 billion as against Rs 11 billion during FY17, thereby witnessing a growth of 13%.

ELGI EQUIPMENTS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 6,069 6,889 13.5
 
Current Liabilities Rs m 3,931 4,962 26.2
Long-term Debt Rs m 966 603 -37.6
Total Liabilities Rs m 11,077 12,528 13.1
 
Current assets Rs m 6,381 7,785 22.0
Fixed Assets Rs m 4,696 4,743 1.0
Total Assets Rs m 11,077 12,528 13.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ELGI EQUIPMENTS Cash Flow Statement Analysis

  • ELGI EQUIPMENTS's cash flow from operating activities (CFO) during FY18 stood at Rs 465 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -532 million, an improvement of 36.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -99 million, an improvement of 87% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -166 million from the Rs 93 million net cash flows seen during FY17.

ELGI EQUIPMENTS 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 1,256 465 -63.0%
Cash Flow from Investing Activities Rs m -389 -532 -
Cash Flow from Financing Activities Rs m -774 -99 -
Net Cash Flow Rs m 93 -166 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ELGI EQUIPMENTS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.9, an improvement from the EPS of Rs 4.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 254.8, stands at 83.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 11.7 times, while the price to sales ratio stands at 2.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 31.6 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 82.2 100.2
TTM Earnings per share Rs 4.6 5.9
Diluted earnings per share Rs 2.3 3.0
Price to Cash Flow x 58.6 31.6
TTM P/E ratio x 93.2 83.2
Price / Book Value ratio x 4.6 6.3
Market Cap Rs m 27,690 43,496
Dividends per share (Unadj.) Rs 1.0 1.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ELGI EQUIPMENTS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY18, from 1.6x 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 19.3x during FY18, from 11.6x 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 13.6% during FY18, from 11.9% 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 improved and stood at 19.0% during FY18, from 15.4% 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 8.1% during FY18, from 7.4% 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 1.6 1.6
Debtors’ Days Days 68 79
Interest coverage x 11.6 19.3
Debt to equity ratio x 0.2 0.1
Return on assets % 7.4 8.1
Return on equity % 11.9 13.6
Return on capital employed % 15.4 19.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how ELGI EQUIPMENTS has performed over the last 5 years, please visit here.

ELGI EQUIPMENTS Share Price Performance

Over the last one year, ELGI EQUIPMENTS share price has moved up from Rs 216.6 to Rs 254.8, registering a gain of Rs 38.2 or around 17.6%.

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 ELGI EQUIPMENTS and quarterly results for ELGI EQUIPMENTS)

Annual Report FAQs

What is the current share price of ELGI EQUIPMENTS?

ELGI EQUIPMENTS currently trades at Rs 601.5 per share. You can check out the latest share price performance of ELGI EQUIPMENTS here...

What was the revenue of ELGI EQUIPMENTS in FY18? How does it compare to earlier years?

The revenues of ELGI EQUIPMENTS stood at Rs 15,998 m in FY18, which was up 21.7% compared to Rs 13,143 m reported in FY17.

ELGI EQUIPMENTS' revenue has grown from Rs 13,019 m in FY14 to Rs 15,998 m in FY18.

Over the past 5 years, the revenue of ELGI EQUIPMENTS has grown at a CAGR of 5.3%.

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

The net profit of ELGI EQUIPMENTS stood at Rs 937 m in FY18, which was up 29.3% compared to Rs 724 m reported in FY17.

This compares to a net profit of Rs 497 m in FY16 and a net profit of Rs 481 m in FY15.

Over the past 5 years, ELGI EQUIPMENTS net profit has grown at a CAGR of 19.8%.

What does the cash flow statement of ELGI EQUIPMENTS 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 ELGI EQUIPMENTS reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 465 m as compared to Rs 1,256 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -532 m as compared to Rs -389 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -99 m as compared to Rs -774 m in FY17.

Here's the cash flow statement of ELGI EQUIPMENTS for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations9747801,2571,256465
From Investments-1,222-168-147-389-532
From Financial Activity204-517-995-774-99
Net Cashflow-439610393-166

What does the Key Ratio analysis of ELGI EQUIPMENTS 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 ELGI EQUIPMENTS reveals:

  • Operating profit margins witnessed a fall and down at 11.0% in FY18 as against 10.8% in FY17.
  • Net profit margins grew from 5.6% in FY17 to 5.9% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.1 as compared to 0.2 in FY17.

Here's the ratio/financial analysis of ELGI EQUIPMENTS for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)7.88.89.210.811.0
Net Profit Margin (%)3.53.83.75.65.9
Debt to Equity Ratio (x)0.50.30.30.20.1

Read: Latest Annual Report Analysis of ELGI EQUIPMENTS

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