EVEREST INDUSTRIES 2017-18 Annual Report Analysis

Sat, 31 Mar

EVEREST INDUSTRIES 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.

EVEREST INDUSTRIES Income Statement Analysis

• Operating income during the year rose 15.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 116.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.2% in FY18 as against 3.9% in FY17.
• Depreciation charges decreased by 7.5% and finance costs decreased by 39.5% YoY, respectively.
• Other income grew by 10.0% YoY.
• Net profit for the year grew by 1657.6% YoY.
• Net profit margins during the year grew from 0.3% in FY17 to 4.3% in FY18.

EVEREST INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	10,794	12,441	15.3%
Other income	Rs m	91	100	10.0%
Total Revenues	Rs m	10,886	12,542	15.2%
Gross profit	Rs m	416	899	116.0%
Depreciation	Rs m	255	235	-7.5%
Interest	Rs m	208	126	-39.5%
Profit before tax	Rs m	45	638	1,331.0%
Tax	Rs m	14	107	646.3%
Profit after tax	Rs m	30	531	1,657.6%
Gross profit margin	%	3.9	7.2
Effective tax rate	%	32.3	16.8
Net profit margin	%	0.3	4.3

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EVEREST INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 3 billion as compared to Rs 4 billion in FY17, thereby witnessing an decrease of -21.6%.
• Long-term debt down at Rs 511 million as compared to Rs 914 million during FY17, a fall of 44.1%.
• Current assets fell 16% and stood at Rs 4 billion, while fixed assets rose 8% and stood at Rs 5 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 9 billion as against Rs 10 billion during FY17, thereby witnessing a fall of 3%.

EVEREST INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	3,373	3,967	17.6
Current Liabilities	Rs m	4,154	3,257	-21.6
Long-term Debt	Rs m	914	511	-44.1
Total Liabilities	Rs m	9,652	9,318	-3.5
Current assets	Rs m	4,630	3,898	-15.8
Fixed Assets	Rs m	5,021	5,420	7.9
Total Assets	Rs m	9,652	9,318	-3.5

EVEREST INDUSTRIES Cash Flow Statement Analysis

• EVEREST INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion, an improvement of 154.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -157 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 94 million from the Rs -467 million net cash flows seen during FY17.

EVEREST INDUSTRIES 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	583	1,481	154.1%
Cash Flow from Investing Activities	Rs m	-186	-157	-
Cash Flow from Financing Activities	Rs m	-864	-1,230	-
Net Cash Flow	Rs m	-467	94	-

Current Valuations for EVEREST INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.9, an improvement from the EPS of Rs 2.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 482.8, stands at 14.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 8.8 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	700.0	796.0
TTM Earnings per share	Rs	2.0	33.9
Diluted earnings per share	Rs	1.9	33.8
Price to Cash Flow	x	12.5	8.8
TTM P/E ratio	x	144.8	14.9
Price / Book Value ratio	x	1.2	1.7
Market Cap	Rs m	3,933	6,760
Dividends per share (Unadj.)	Rs	1.0	6.5

Ratio Analysis for EVEREST INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY18, from 1.1x 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 6.1x during FY18, from 1.2x 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 13.4% 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 improved and stood at 17.1% during FY18, from 5.9% 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 7.0% during FY18, from 2.5% 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	1.1	1.2
Debtors’ Days	Days	345	207
Interest coverage	x	1.2	6.1
Debt to equity ratio	x	0.3	0.1
Return on assets	%	2.5	7.0
Return on equity	%	0.9	13.4
Return on capital employed	%	5.9	17.1

To see how EVEREST INDUSTRIES has performed over the last 5 years, please visit here.

EVEREST INDUSTRIES Share Price Performance

Over the last one year, EVEREST INDUSTRIES share price has moved up from Rs 227.2 to Rs 482.8, registering a gain of Rs 255.6 or around 112.5%.

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

(To know more, check out historical annual results for EVEREST INDUSTRIES and quarterly results for EVEREST INDUSTRIES)

Read: Latest Annual Report Analysis of EVEREST INDUSTRIES