FINOLEX CABLES 2017-18 Annual Report Analysis

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FINOLEX CABLES 2017-18 Annual Report Analysis
Thu, 20 Dec

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 15.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 11.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.7% in FY18 as against 16.2% in FY17.
  • Depreciation charges decreased by 8.8% and finance costs decreased by 66.4% YoY, respectively.
  • Other income grew by 36.8% YoY.
  • Net profit for the year declined by 17.5% YoY.
  • Net profit margins during the year declined from 16.0% in FY17 to 11.4% in FY18.

FINOLEX CABLES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 24,448 28,151 15.1%
Other income Rs m 594 812 36.8%
Total Revenues Rs m 25,042 28,963 15.7%
Gross profit Rs m 3,959 4,408 11.3%
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 4,003 3,301 -17.5%
Gross profit margin % 16.2 15.7
Effective tax rate % 25.7 45.9
Net profit margin % 16.0 11.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 fell 2% and stood at Rs 4 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 4,230 4,142 -2.1
Total Assets Rs m 24,396 27,839 14.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for FINOLEX CABLES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.6, an decline from the EPS of Rs 26.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 463.3, stands at 20.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 3.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 23.5 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 159.9 184.1
TTM Earnings per share Rs 26.2 21.6
Diluted earnings per share Rs 26.2 21.6
Price to Cash Flow x 20.4 23.5
TTM P/E ratio x 20.8 20.8
Price / Book Value ratio x 2.8 3.8
Market Cap Rs m 70,849 70,849
Dividends per share (Unadj.) Rs 3.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 deteriorated 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 13.6% during FY18, from 18.7% 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 22.7% during FY18, from 23.7% 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 11.9% during FY18, from 16.6% 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 19 23
Interest coverage x 94.9 332.1
Debt to equity ratio x 0.0 0.0
Return on assets % 16.6 11.9
Return on equity % 18.7 13.6
Return on capital employed % 23.7 22.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 706.2 to Rs 463.3, registering a loss of Rs 243.0 or around 34.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,822.1 (up 0.1%). Over the last one year it has moved up from 18,684.3 to 18,822.1, a gain of 138 points (up 0.7%).

Overall, the S&P BSE SENSEX is up 7.5% over the year.

(To know more, check out historical annual results for FINOLEX CABLES and quarterly results for FINOLEX CABLES)

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