GUJARAT ALKALIES 2017-18 Annual Report Analysis

Sat, 31 Mar

GUJARAT ALKALIES 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.

GUJARAT ALKALIES Income Statement Analysis

• Operating income during the year rose 30.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 75.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 32.8% in FY18 as against 24.3% in FY17.
• Depreciation charges increased by 14.8% and finance costs increased by 16.1% YoY, respectively.
• Other income grew by 81.8% YoY.
• Net profit for the year grew by 73.5% YoY.
• Net profit margins during the year grew from 16.8% in FY17 to 22.3% in FY18.

GUJARAT ALKALIES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	18,379	23,951	30.3%
Other income	Rs m	582	1,057	81.8%
Total Revenues	Rs m	18,961	25,009	31.9%
Gross profit	Rs m	4,474	7,867	75.9%
Depreciation	Rs m	1,109	1,273	14.8%
Interest	Rs m	128	149	16.1%
Profit before tax	Rs m	3,818	7,502	96.5%
Tax	Rs m	733	2,149	193.3%
Profit after tax	Rs m	3,085	5,353	73.5%
Gross profit margin	%	24.3	32.8
Effective tax rate	%	19.2	28.6
Net profit margin	%	16.8	22.3

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GUJARAT ALKALIES Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 5 billion as compared to Rs 4 billion in FY17, thereby witnessing an increase of 17.0%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY17, a fall of 19.2%.
• Current assets rose 26% and stood at Rs 13 billion, while fixed assets rose 8% and stood at Rs 37 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 50 billion as against Rs 44 billion during FY17, thereby witnessing a growth of 12%.

GUJARAT ALKALIES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	33,557	38,210	13.9
Current Liabilities	Rs m	4,086	4,780	17.0
Long-term Debt	Rs m	2,843	2,298	-19.2
Total Liabilities	Rs m	44,354	49,703	12.1
Current assets	Rs m	10,128	12,750	25.9
Fixed Assets	Rs m	34,226	36,953	8.0
Total Assets	Rs m	44,354	49,703	12.1

GUJARAT ALKALIES Cash Flow Statement Analysis

• GUJARAT ALKALIES's cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion, an improvement of 2.3% 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 -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 28 million from the Rs 488 million net cash flows seen during FY17.

GUJARAT ALKALIES 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	5,021	5,139	2.3%
Cash Flow from Investing Activities	Rs m	-4,667	-3,947	-
Cash Flow from Financing Activities	Rs m	135	-1,163	-
Net Cash Flow	Rs m	488	28	-94.2%

Current Valuations for GUJARAT ALKALIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 72.9, an improvement from the EPS of Rs 42.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 699.5, stands at 9.6 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 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 7.3 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	250.3	326.1
TTM Earnings per share	Rs	42.0	72.9
Diluted earnings per share	Rs	42.0	72.9
Price to Cash Flow	x	7.1	7.3
TTM P/E ratio	x	9.7	9.6
Price / Book Value ratio	x	0.7	1.3
Market Cap	Rs m	21,914	48,187
Dividends per share (Unadj.)	Rs	5.0	6.5

Ratio Analysis for GUJARAT ALKALIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY18, from 2.5x 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 51.4x during FY18, from 30.8x 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 14.0% during FY18, from 9.2% 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 18.9% during FY18, from 10.8% 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 11.1% during FY18, from 7.2% 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	2.5	2.7
Debtors’ Days	Days	653	615
Interest coverage	x	30.8	51.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.2	11.1
Return on equity	%	9.2	14.0
Return on capital employed	%	10.8	18.9

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

GUJARAT ALKALIES Share Price Performance

Over the last one year, GUJARAT ALKALIES share price has moved up from Rs 406.9 to Rs 699.5, registering a gain of Rs 292.6 or around 71.9%.

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

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

Read: Latest Annual Report Analysis of GUJARAT ALKALIES