FIRSTSOURCE SOL. 2017-18 Annual Report Analysis

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FIRSTSOURCE SOL. 2017-18 Annual Report Analysis
Mon, 18 Mar

FIRSTSOURCE SOL. 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.

FIRSTSOURCE SOL. Income Statement Analysis

  • Operating income during the year fell 0.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 4.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.0% in FY18 as against 12.3% in FY17.
  • Depreciation charges increased by 11.8% and finance costs decreased by 10.9% YoY, respectively.
  • Other income grew by 69.2% YoY.
  • Net profit for the year grew by 17.0% YoY.
  • Net profit margins during the year grew from 7.8% in FY17 to 9.2% in FY18.

FIRSTSOURCE SOL. Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 35,556 35,353 -0.6%
Other income Rs m 32 54 69.2%
Total Revenues Rs m 35,588 35,407 -0.5%
Gross profit Rs m 4,380 4,589 4.8%
Depreciation Rs m 590 659 11.8%
Interest Rs m 453 404 -10.9%
Profit before tax Rs m 3,369 3,580 6.3%
Tax Rs m 577 314 -45.5%
Profit after tax Rs m 2,792 3,266 17.0%
Gross profit margin % 12.3 13.0
Effective tax rate % 17.1 8.8
Net profit margin % 7.8 9.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



FIRSTSOURCE SOL. Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 10 billion as compared to Rs 9 billion in FY17, thereby witnessing an increase of 7.7%.
  • Long-term debt down at Rs 142 million as compared to Rs 4 billion during FY17, a fall of 96.0%.
  • Current assets rose 1% and stood at Rs 8 billion, while fixed assets rose 1% and stood at Rs 2 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 34 billion as against Rs 34 billion during FY17, thereby witnessing a growth of 1%.

FIRSTSOURCE SOL. Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 20,280 23,518 16.0
 
Current Liabilities Rs m 9,121 9,826 7.7
Long-term Debt Rs m 3,580 142 -96.0
Total Liabilities Rs m 33,506 33,976 1.4
 
Current assets Rs m 7,843 7,891 0.6
Fixed Assets Rs m 1,497 1,510 0.9
Total Assets Rs m 33,506 33,976 1.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



FIRSTSOURCE SOL. Cash Flow Statement Analysis

  • FIRSTSOURCE SOL.'s cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion, an improvement of 57.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 916 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 843 million from the Rs -299 million net cash flows seen during FY17.

FIRSTSOURCE SOL. 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 1,998 3,151 57.7%
Cash Flow from Investing Activities Rs m -2,315 916 -
Cash Flow from Financing Activities Rs m 35 -3,268 -
Net Cash Flow Rs m -299 843 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for FIRSTSOURCE SOL.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.8, an improvement from the EPS of Rs 4.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 44.9, stands at 8.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.6 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 52.2 51.5
TTM Earnings per share Rs 4.1 4.8
Diluted earnings per share Rs 4.2 4.9
Price to Cash Flow x 9.0 7.6
TTM P/E ratio x 8.2 8.0
Price / Book Value ratio x 1.4 1.3
Market Cap Rs m 30,591 29,916
Dividends per share (Unadj.) Rs 0.0 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for FIRSTSOURCE SOL.

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY18, from 0.9x 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 9.9x during FY18, from 8.4x 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 13.9% during FY18, from 13.8% 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 16.8% during FY18, from 16.0% 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 improved and stood at 10.8% during FY18, from 9.7% 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 0.9 0.8
Debtors’ Days Days 31 39
Interest coverage x 8.4 9.9
Debt to equity ratio x 0.2 0.0
Return on assets % 9.7 10.8
Return on equity % 13.8 13.9
Return on capital employed % 16.0 16.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how FIRSTSOURCE SOL. has performed over the last 5 years, please visit here.

FIRSTSOURCE SOL. Share Price Performance

Over the last one year, FIRSTSOURCE SOL. share price has moved up from Rs 49.7 to Rs 44.9, registering a loss of Rs 4.8 or around 9.6%.

Meanwhile, the S&P BSE IT Index is trading at Rs 15,173.7 (up 0.1%). Over the last one year it has moved up from 12,317.8 to 15,173.7, a gain of 2,856 points (up 23.2%).

Overall, the S&P BSE SENSEX is up 13.4% over the year.

(To know more, check out historical annual results for FIRSTSOURCE SOL. and quarterly results for FIRSTSOURCE SOL.)

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