FINOLEX CABLES 2017-18 Annual Report Analysis

Sat, 31 Mar

FINOLEX CABLES 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.

FINOLEX CABLES Income Statement Analysis

• Operating income during the year rose 23.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.9% in FY18 as against 17.8% in FY17.
• Depreciation charges decreased by 8.8% and finance costs decreased by 66.4% YoY, respectively.
• Other income grew by 46.0% YoY.
• Net profit for the year declined by 14.0% YoY.
• Net profit margins during the year declined from 13.5% in FY17 to 9.4% in FY18.

FINOLEX CABLES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	22,189	27,460	23.8%
Other income	Rs m	594	867	46.0%
Total Revenues	Rs m	22,783	28,327	24.3%
Gross profit	Rs m	3,959	4,353	9.9%
Depreciation	Rs m	480	438	-8.8%
Interest	Rs m	43	14	-66.4%
Profit before tax	Rs m	4,030	4,767	18.3%
Tax	Rs m	1,034	2,190	111.7%
Profit after tax	Rs m	2,995	2,577	-14.0%
Gross profit margin	%	17.8	15.9
Effective tax rate	%	25.7	45.9
Net profit margin	%	13.5	9.4

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FINOLEX CABLES Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 2 billion as compared to Rs 3 billion in FY17, thereby witnessing an decrease of -12.3%.
• Long-term debt down at Rs 6 million as compared to Rs 8 million during FY17, a fall of 33.7%.
• Current assets rose 20% and stood at Rs 15 billion, while fixed assets rose 8% and stood at Rs 13 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 28 billion as against Rs 24 billion during FY17, thereby witnessing a growth of 14%.

FINOLEX CABLES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	21,409	24,290	13.5
Current Liabilities	Rs m	2,734	2,397	-12.3
Long-term Debt	Rs m	8	6	-33.7
Total Liabilities	Rs m	24,396	27,839	14.1
Current assets	Rs m	12,554	15,099	20.3
Fixed Assets	Rs m	11,842	12,740	7.6
Total Assets	Rs m	24,396	27,839	14.1

FINOLEX CABLES Cash Flow Statement Analysis

• FINOLEX CABLES's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 10.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion, an improvement of 6.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -568 million, an improvement of 25% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 445 million from the Rs 113 million net cash flows seen during FY17.

FINOLEX CABLES 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	2,128	2,357	10.8%
Cash Flow from Investing Activities	Rs m	-1,261	-1,345	-
Cash Flow from Financing Activities	Rs m	-754	-568	-
Net Cash Flow	Rs m	113	445	294.6%

Current Valuations for FINOLEX CABLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.9, an decline from the EPS of Rs 19.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 669.3, stands at 28.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 30.5 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	145.1	179.5
TTM Earnings per share	Rs	19.6	16.9
Diluted earnings per share	Rs	19.6	16.9
Price to Cash Flow	x	22.7	30.5
TTM P/E ratio	x	25.0	28.6
Price / Book Value ratio	x	2.8	3.8
Market Cap	Rs m	60,415	92,062
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for FINOLEX CABLES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.3x during FY18, from 4.6x 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 332.1x during FY18, from 94.9x 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 10.6% during FY18, from 14.0% 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 19.7% during FY18, from 19.0% 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 12.5% 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	4.6	6.3
Debtors’ Days	Days	20	2
Interest coverage	x	94.9	332.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.5	9.3
Return on equity	%	14.0	10.6
Return on capital employed	%	19.0	19.7

To see how FINOLEX CABLES has performed over the last 5 years, please visit here.

FINOLEX CABLES Share Price Performance

Over the last one year, FINOLEX CABLES share price has moved up from Rs 516.6 to Rs 669.3, registering a gain of Rs 152.7 or around 29.6%.

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 FINOLEX CABLES and quarterly results for FINOLEX CABLES)

Read: Latest Annual Report Analysis of FINOLEX CABLES