UFLEX 2017-18 Annual Report Analysis

Sat, 31 Mar

UFLEX 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.

UFLEX Income Statement Analysis

• Operating income during the year rose 13.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.2% in FY18 as against 14.8% in FY17.
• Depreciation charges increased by 10.7% and finance costs increased by 5.5% YoY, respectively.
• Other income declined by 28.0% YoY.
• Net profit for the year declined by 11.0% YoY.
• Net profit margins during the year declined from 6.0% in FY17 to 4.7% in FY18.

UFLEX Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	58,085	66,173	13.9%
Other income	Rs m	370	266	-28.0%
Total Revenues	Rs m	58,455	66,440	13.7%
Gross profit	Rs m	8,619	8,760	1.6%
Depreciation	Rs m	3,175	3,516	10.7%
Interest	Rs m	1,868	1,971	5.5%
Profit before tax	Rs m	3,945	3,539	-10.3%
Tax	Rs m	438	417	-4.7%
Profit after tax	Rs m	3,508	3,122	-11.0%
Gross profit margin	%	14.8	13.2
Effective tax rate	%	11.1	11.8
Net profit margin	%	6.0	4.7

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

UFLEX Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 25 billion as compared to Rs 23 billion in FY17, thereby witnessing an increase of 7.5%.
• Long-term debt stood at Rs 11 billion as compared to Rs 10 billion during FY17, a growth of 2.4%.
• Current assets rose 16% and stood at Rs 35 billion, while fixed assets rose 1% and stood at Rs 42 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 77 billion as against Rs 71 billion during FY17, thereby witnessing a growth of 8%.

UFLEX Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	36,288	39,747	9.5
Current Liabilities	Rs m	23,208	24,957	7.5
Long-term Debt	Rs m	10,298	10,549	2.4
Total Liabilities	Rs m	71,484	76,882	7.6
Current assets	Rs m	30,027	34,868	16.1
Fixed Assets	Rs m	41,458	42,014	1.3
Total Assets	Rs m	71,484	76,882	7.6

UFLEX Cash Flow Statement Analysis

• UFLEX's cash flow from operating activities (CFO) during FY18 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 192 million from the Rs -916 million net cash flows seen during FY17.

UFLEX 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	7,792	6,510	-16.4%
Cash Flow from Investing Activities	Rs m	-6,691	-4,267	-
Cash Flow from Financing Activities	Rs m	-2,017	-2,051	-
Net Cash Flow	Rs m	-916	192	-

Current Valuations for UFLEX

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 43.2, an decline from the EPS of Rs 48.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 339.8, stands at 8.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 4.3 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	804.4	916.4
TTM Earnings per share	Rs	48.6	43.2
Diluted earnings per share	Rs	48.6	43.2
Price to Cash Flow	x	3.0	4.3
TTM P/E ratio	x	8.1	8.9
Price / Book Value ratio	x	0.5	0.7
Market Cap	Rs m	18,257	28,442
Dividends per share (Unadj.)	Rs	3.5	2.0

Ratio Analysis for UFLEX

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 1.3x 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 2.8x during FY18, from 3.1x 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 7.9% during FY18, from 9.7% 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 11.0% during FY18, from 12.5% 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 6.6% during FY18, from 7.5% 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	1.3	1.4
Debtors’ Days	Days	1,043	1,066
Interest coverage	x	3.1	2.8
Debt to equity ratio	x	0.3	0.3
Return on assets	%	7.5	6.6
Return on equity	%	9.7	7.9
Return on capital employed	%	12.5	11.0

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

UFLEX Share Price Performance

Over the last one year, UFLEX share price has moved up from Rs 277.9 to Rs 339.8, registering a gain of Rs 61.9 or around 22.3%.

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

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

Read: Latest Annual Report Analysis of UFLEX