SCHAEFFLER INDIA 2017-18 Annual Report Analysis

Mon, 31 Dec

SCHAEFFLER INDIA has announced its results for the year ended December 2018. Let us have a look at the detailed performance review of the company during FY17-18.

SCHAEFFLER INDIA Income Statement Analysis

• Operating income during the year rose 21.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.3% in CY18 as against 17.9% in CY17.
• Depreciation charges increased by 7.5% and finance costs decreased by 33.8% YoY, respectively.
• Other income grew by 109.1% YoY.
• Net profit for the year grew by 8.1% YoY.
• Net profit margins during the year declined from 10.3% in CY17 to 9.2% in CY18.

SCHAEFFLER INDIA Income Statement 2017-18

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*	% Change
Net Sales	Rs m	37,666	45,615	21.1%
Other income	Rs m	641	1,340	109.1%
Total Revenues	Rs m	38,307	46,955	22.6%
Gross profit	Rs m	6,744	6,538	-3.1%
Depreciation	Rs m	1,382	1,485	7.5%
Interest	Rs m	115	76	-33.8%
Profit before tax	Rs m	5,888	6,317	7.3%
Tax	Rs m	2,003	2,119	5.8%
Profit after tax	Rs m	3,885	4,198	8.1%
Gross profit margin	%	17.9	14.3
Effective tax rate	%	34.0	33.5
Net profit margin	%	10.3	9.2

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SCHAEFFLER INDIA Balance Sheet Analysis

• The company's current liabilities during CY18 stood at Rs 10 billion as compared to Rs 8 billion in CY17, thereby witnessing an increase of 35.1%.
• Long-term debt down at Rs 49 million as compared to Rs 569 million during CY17, a fall of 91.4%.
• Current assets rose 18% and stood at Rs 27 billion, while fixed assets rose 17% and stood at Rs 11 billion in CY18.
• Overall, the total assets and liabilities for CY18 stood at Rs 37 billion as against Rs 32 billion during CY17, thereby witnessing a growth of 18%.

SCHAEFFLER INDIA Balance Sheet as on December 2018

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*	% Change
Networth	Rs m	23,105	27,061	17.1
Current Liabilities	Rs m	7,527	10,170	35.1
Long-term Debt	Rs m	569	49	-91.4
Total Liabilities	Rs m	31,637	37,349	18.1
Current assets	Rs m	22,508	26,637	18.3
Fixed Assets	Rs m	9,129	10,712	17.3
Total Assets	Rs m	31,637	37,349	18.1

SCHAEFFLER INDIA Cash Flow Statement Analysis

• SCHAEFFLER INDIA 's cash flow from operating activities (CFO) during CY18 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during CY18 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during CY18 stood at Rs -522 million, an improvement of 41% on a YoY basis.
• Overall, net cash flows for the company during CY18 stood at Rs 22 million from the Rs 431 million net cash flows seen during CY17.

SCHAEFFLER INDIA Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-17	Dec-18
Cash Flow from Operating Activities	Rs m	4,010	2,382	-40.6%
Cash Flow from Investing Activities	Rs m	-3,050	-1,838	-
Cash Flow from Financing Activities	Rs m	-882	-522	-
Net Cash Flow	Rs m	431	22	-95.0%

Current Valuations for SCHAEFFLER INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 134.3, an decline from the EPS of Rs 233.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,691.3, stands at 211.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 32.9 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 28.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*
Sales per share (Unadj.)	Rs	2,266.3	1,459.2
TTM Earnings per share	Rs	233.7	134.3
Diluted earnings per share	Rs	24.9	26.9
Price to Cash Flow	x	173.4	28.9
TTM P/E ratio	x	293.8	211.9
Price / Book Value ratio	x	3.5	6.1
Market Cap	Rs m	81,114	164,370
Dividends per share (Unadj.)	Rs	3.4	6.0

Ratio Analysis for SCHAEFFLER INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during CY18, from 3.0x during CY17. 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 84.1x during CY18, from 52.3x during CY17. 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 15.5% during CY18, from 16.8% during CY18. 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 23.6% during CY18, from 25.4% during CY17. 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 11.4% during CY18, from 12.6% during CY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*
Current ratio	x	3.0	2.6
Debtors’ Days	Days	62	60
Interest coverage	x	52.3	84.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.6	11.4
Return on equity	%	16.8	15.5
Return on capital employed	%	25.4	23.6

To see how SCHAEFFLER INDIA has performed over the last 5 years, please visit here.

SCHAEFFLER INDIA Share Price Performance

Over the last one year, SCHAEFFLER INDIA share price has moved up from Rs 4,559.8 to Rs 5,165.2, registering a gain of Rs 605.4 or around 13.3%.

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

(To know more, check out historical annual results for SCHAEFFLER INDIA and quarterly results for SCHAEFFLER INDIA )

Read: Latest Annual Report Analysis of SCHAEFFLER INDIA