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FINOLEX INDUSTRIES 2017-18 Annual Report Analysis

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FINOLEX INDUSTRIES 2017-18 Annual Report Analysis
Fri, 29 Mar

FINOLEX 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.

FINOLEX INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 5.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 14.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.7% in FY18 as against 21.6% in FY17.
  • Depreciation charges increased by 10.1% and finance costs decreased by 36.2% YoY, respectively.
  • Other income grew by 5.3% YoY.
  • Net profit for the year declined by 13.7% YoY.
  • Net profit margins during the year declined from 13.5% in FY17 to 11.1% in FY18.

FINOLEX INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
Net SalesRs m26,02427,3785.2%
Other incomeRs m2322445.3%
Total RevenuesRs m26,25527,6225.2%
Gross profitRs m5,6314,839-14.1%
DepreciationRs m55160610.1%
InterestRs m15498-36.2%
Profit before taxRs m5,1584,379-15.1%
TaxRs m1,7031,479-13.1%
Profit after taxRs m3,5493,063-13.7%
Gross profit margin%21.617.7
Effective tax rate%33.033.8
Net profit margin%13.511.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



FINOLEX INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 5 billion as compared to Rs 5 billion in FY17, thereby witnessing an increase of 6.9%.
  • Current assets rose 11% and stood at Rs 8 billion, while fixed assets rose 11% and stood at Rs 10 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 35 billion as against Rs 30 billion during FY17, thereby witnessing a growth of 17%.

FINOLEX INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
NetworthRs m23,14827,95120.8
 
Current LiabilitiesRs m4,5954,9116.9
Long-term DebtRs m000.0
Total LiabilitiesRs m29,96735,06017.0
 
Current assetsRs m7,2938,08110.8
Fixed AssetsRs m 8,7699,74611.1
Total AssetsRs m29,96735,06017.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



FINOLEX INDUSTRIES Cash Flow Statement Analysis

  • FINOLEX INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion, an improvement of 34.4% 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, an improvement of 38% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 13 million from the Rs 39 million net cash flows seen during FY17.

FINOLEX INDUSTRIES Cash Flow Statement 2017-18

ParticularsNo. of months1212% Change
Year EndingMar-17Mar-18
Cash Flow from Operating ActivitiesRs m2,5173,38434.4%
Cash Flow from Investing ActivitiesRs m346-1,619-
Cash Flow from Financing ActivitiesRs m-2,824-1,752-
Net Cash FlowRs m3913-66.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for FINOLEX INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.7, an decline from the EPS of Rs 28.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 498.0, stands at 16.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 3.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 17.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Sales per share (Unadj.)Rs209.7220.6
TTM Earnings per shareRs28.624.7
Diluted earnings per shareRs28.624.7
Price to Cash Flow x15.417.6
TTM P/E ratiox16.316.3
Price / Book Value ratiox2.52.9
Market CapRs m61,80261,799
Dividends per share (Unadj.)Rs11.510.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for FINOLEX INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.6x during FY18, from 1.6x 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 45.6x during FY18, from 34.5x 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 11.0% during FY18, from 15.3% 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 16.6% during FY18, from 23.4% 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 9.0% during FY18, from 12.4% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Current ratiox1.61.6
Debtors’ DaysDays76
Interest coveragex34.545.6
Debt to equity ratiox0.00.0
Return on assets%12.49.0
Return on equity%15.311.0
Return on capital employed%23.416.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

FINOLEX INDUSTRIES Share Price Performance

Over the last one year, FINOLEX INDUSTRIES share price has moved up from Rs 651.3 to Rs 498.0, registering a loss of Rs 153.3 or around 23.5%.

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

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Related Views on News

FINOLEX INDUSTRIES Announces Quarterly Results (4QFY19); Net Profit Down 24.4% (Quarterly Result Update)

May 27, 2019 | Updated on May 27, 2019

For the quarter ended March 2019, FINOLEX INDUSTRIES has posted a net profit of Rs 914 m (down 24.4% YoY). Sales on the other hand came in at Rs 10 bn (up 19.2% YoY). Read on for a complete analysis of FINOLEX INDUSTRIES's quarterly results.

FINOLEX IND. Announces Quarterly Results (3QFY19); Net Profit Up 13.1% (Quarterly Result Update)

Feb 11, 2019 | Updated on Feb 11, 2019

For the quarter ended December 2018, FINOLEX IND. has posted a net profit of Rs 787 m (up 13.1% YoY). Sales on the other hand came in at Rs 8 bn (up 4.7% YoY). Read on for a complete analysis of FINOLEX IND.'s quarterly results.

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