GATEWAY DISTRIPARKS 2017-18 Annual Report Analysis

Sat, 31 Mar

GATEWAY DISTRIPARKS 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.

GATEWAY DISTRIPARKS Income Statement Analysis

• Operating income during the year rose 0.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.3% in FY18 as against 23.3% in FY17.
• Depreciation charges increased by 13.2% and finance costs increased by 90.8% YoY, respectively.
• Other income grew by 12.0% YoY.
• Net profit for the year declined by 23.9% YoY.
• Net profit margins during the year declined from 14.4% in FY17 to 10.9% in FY18.

GATEWAY DISTRIPARKS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	3,934	3,955	0.5%
Other income	Rs m	123	138	12.0%
Total Revenues	Rs m	4,057	4,093	0.9%
Gross profit	Rs m	916	842	-8.0%
Depreciation	Rs m	265	300	13.2%
Interest	Rs m	58	110	90.8%
Profit before tax	Rs m	715	569	-20.4%
Tax	Rs m	150	139	-7.3%
Profit after tax	Rs m	565	430	-23.9%
Gross profit margin	%	23.3	21.3
Effective tax rate	%	21.0	24.5
Net profit margin	%	14.4	10.9

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GATEWAY DISTRIPARKS Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 885 million as compared to Rs 554 million in FY17, thereby witnessing an increase of 59.6%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY17, a fall of 0.4%.
• Current assets rose 157% and stood at Rs 2 billion, while fixed assets fell 13% and stood at Rs 10 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 12 billion as against Rs 12 billion during FY17, thereby witnessing a growth of 0%.

GATEWAY DISTRIPARKS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	10,179	10,092	-0.8
Current Liabilities	Rs m	554	885	59.6
Long-term Debt	Rs m	1,043	1,039	-0.4
Total Liabilities	Rs m	11,936	11,983	0.4
Current assets	Rs m	927	2,380	156.7
Fixed Assets	Rs m	11,009	9,602	-12.8
Total Assets	Rs m	11,936	11,983	0.4

GATEWAY DISTRIPARKS Cash Flow Statement Analysis

• GATEWAY DISTRIPARKS's cash flow from operating activities (CFO) during FY18 stood at Rs 847 million, an improvement of 38.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 7 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -892 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -38 million from the Rs -67 million net cash flows seen during FY17.

GATEWAY DISTRIPARKS 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	613	847	38.2%
Cash Flow from Investing Activities	Rs m	-559	7	-
Cash Flow from Financing Activities	Rs m	-121	-892	-
Net Cash Flow	Rs m	-67	-38	-

Current Valuations for GATEWAY DISTRIPARKS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.0, an decline from the EPS of Rs 5.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 174.6, stands at 57.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 34.4 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	36.2	36.4
TTM Earnings per share	Rs	5.2	4.0
Diluted earnings per share	Rs	4.5	3.4
Price to Cash Flow	x	38.1	34.4
TTM P/E ratio	x	46.4	57.3
Price / Book Value ratio	x	2.9	2.5
Market Cap	Rs m	29,022	25,127
Dividends per share (Unadj.)	Rs	7.0	7.0

Ratio Analysis for GATEWAY DISTRIPARKS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY18, from 1.7x 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 6.2x during FY18, from 13.4x 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 declined and down at 4.3% during FY18, from 5.6% 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 6.1% during FY18, from 6.9% 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 4.5% during FY18, from 5.2% 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	1.7	2.7
Debtors’ Days	Days	422	495
Interest coverage	x	13.4	6.2
Debt to equity ratio	x	0.1	0.1
Return on assets	%	5.2	4.5
Return on equity	%	5.6	4.3
Return on capital employed	%	6.9	6.1

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

GATEWAY DISTRIPARKS Share Price Performance

Over the last one year, GATEWAY DISTRIPARKS share price has moved down from Rs 253.3 to Rs 174.6, registering a loss of Rs 78.7 or around 31.1%.

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

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

Read: Latest Annual Report Analysis of GATEWAY DISTRIPARKS