ESSEL PROPACK 2017-18 Annual Report Analysis

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ESSEL PROPACK 2017-18 Annual Report Analysis
Thu, 4 Apr

ESSEL PROPACK 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.

ESSEL PROPACK Income Statement Analysis

  • Operating income during the year rose 5.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 9.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.7% in FY18 as against 19.0% in FY17.
  • Depreciation charges increased by 18.1% and finance costs decreased by 5.5% YoY, respectively.
  • Other income declined by 35.2% YoY.
  • Net profit for the year declined by 10.9% YoY.
  • Net profit margins during the year declined from 8.4% in FY17 to 7.1% in FY18.

ESSEL PROPACK Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 23,023 24,239 5.3%
Other income Rs m 203 132 -35.2%
Total Revenues Rs m 23,226 24,371 4.9%
Gross profit Rs m 4,369 4,779 9.4%
Depreciation Rs m 1,415 1,671 18.1%
Interest Rs m 581 549 -5.5%
Profit before tax Rs m 2,576 2,691 4.5%
Tax Rs m 787 889 13.0%
Profit after tax Rs m 1,956 1,742 -10.9%
Gross profit margin % 19.0 19.7
Effective tax rate % 30.5 33.0
Net profit margin % 8.4 7.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ESSEL PROPACK Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 7 billion as compared to Rs 5 billion in FY17, thereby witnessing an increase of 26.8%.
  • Long-term debt down at Rs 4 billion as compared to Rs 6 billion during FY17, a fall of 25.7%.
  • Current assets rose 18% and stood at Rs 11 billion, while fixed assets rose 2% and stood at Rs 12 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 25 billion as against Rs 23 billion during FY17, thereby witnessing a growth of 9%.

ESSEL PROPACK Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 10,390 12,506 20.4
 
Current Liabilities Rs m 5,450 6,912 26.8
Long-term Debt Rs m 6,050 4,492 -25.7
Total Liabilities Rs m 22,587 24,546 8.7
 
Current assets Rs m 9,640 11,340 17.6
Fixed Assets Rs m 11,988 12,258 2.3
Total Assets Rs m 22,587 24,546 8.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ESSEL PROPACK Cash Flow Statement Analysis

  • ESSEL PROPACK's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion 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 -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 337 million from the Rs 133 million net cash flows seen during FY17.

ESSEL PROPACK 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 3,687 3,437 -6.8%
Cash Flow from Investing Activities Rs m -3,010 -1,560 -
Cash Flow from Financing Activities Rs m -762 -1,540 -
Net Cash Flow Rs m 133 337 153.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ESSEL PROPACK

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.1, an decline from the EPS of Rs 12.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 117.0, stands at 24.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 1.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.7 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 146.5 154.2
TTM Earnings per share Rs 12.5 11.1
Diluted earnings per share Rs 6.2 5.5
Price to Cash Flow x 5.5 10.7
TTM P/E ratio x 12.1 24.2
Price / Book Value ratio x 3.2 3.4
Market Cap Rs m 18,381 36,780
Dividends per share (Unadj.) Rs 2.4 2.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ESSEL PROPACK

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY18, from 1.8x 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 5.9x during FY18, from 5.4x 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 13.9% during FY18, from 18.8% 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 18.7% during FY18, from 20.2% 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 9.3% during FY18, from 11.2% 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 1.8 1.6
Debtors’ Days Days 60 69
Interest coverage x 5.4 5.9
Debt to equity ratio x 0.6 0.4
Return on assets % 11.2 9.3
Return on equity % 18.8 13.9
Return on capital employed % 20.2 18.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how ESSEL PROPACK has performed over the last 5 years, please visit here.

ESSEL PROPACK Share Price Performance

Over the last one year, ESSEL PROPACK share price has moved up from Rs 125.4 to Rs 117.0, registering a loss of Rs 8.4 or around 6.7%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for ESSEL PROPACK and quarterly results for ESSEL PROPACK)

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For the quarter ended March 2020, ESSEL PROPACK has posted a net profit of Rs 491 m (down 7.8% YoY). Sales on the other hand came in at Rs 7 bn (down 0.7% YoY). Read on for a complete analysis of ESSEL PROPACK's quarterly results.

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