MAHINDRA LIFESPACE 2017-18 Annual Report Analysis

Sat, 31 Mar

MAHINDRA LIFESPACE 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.

MAHINDRA LIFESPACE Income Statement Analysis

• Operating income during the year fell 25.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.1% in FY18 as against 6.6% in FY17.
• Depreciation charges decreased by 7.9% and finance costs increased by 104.3% YoY, respectively.
• Other income grew by 13.2% YoY.
• Net profit for the year declined by 4.4% YoY.
• Net profit margins during the year grew from 8.1% in FY17 to 10.4% in FY18.

MAHINDRA LIFESPACE Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	7,621	5,662	-25.7%
Other income	Rs m	689	779	13.2%
Total Revenues	Rs m	8,310	6,441	-22.5%
Gross profit	Rs m	503	574	14.1%
Depreciation	Rs m	46	43	-7.9%
Interest	Rs m	202	413	104.3%
Profit before tax	Rs m	944	898	-4.8%
Tax	Rs m	330	312	-5.6%
Profit after tax	Rs m	614	586	-4.4%
Gross profit margin	%	6.6	10.1
Effective tax rate	%	35.0	34.7
Net profit margin	%	8.1	10.4

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MAHINDRA LIFESPACE Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 8 billion as compared to Rs 8 billion in FY17, thereby witnessing an increase of 2.0%.
• Long-term debt down at Rs 576 million as compared to Rs 3 billion during FY17, a fall of 79.0%.
• Current assets rose 2% and stood at Rs 21 billion, while fixed assets rose 9% and stood at Rs 9 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 30 billion as against Rs 29 billion during FY17, thereby witnessing a growth of 4%.

MAHINDRA LIFESPACE Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	16,952	20,536	21.1
Current Liabilities	Rs m	7,734	7,891	2.0
Long-term Debt	Rs m	2,748	576	-79.0
Total Liabilities	Rs m	28,863	29,980	3.9
Current assets	Rs m	20,752	21,133	1.8
Fixed Assets	Rs m	8,110	8,847	9.1
Total Assets	Rs m	28,863	29,980	3.9

MAHINDRA LIFESPACE Cash Flow Statement Analysis

• MAHINDRA LIFESPACE 's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 179.4% 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 -400 million, an improvement of 84% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -253 million from the Rs -444 million net cash flows seen during FY17.

MAHINDRA LIFESPACE 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	696	1,944	179.4%
Cash Flow from Investing Activities	Rs m	1,409	-1,797	-
Cash Flow from Financing Activities	Rs m	-2,548	-400	-
Net Cash Flow	Rs m	-444	-253	-

Current Valuations for MAHINDRA LIFESPACE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.4, an decline from the EPS of Rs 14.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 442.4, stands at 116.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at 38.6 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	185.7	110.3
TTM Earnings per share	Rs	14.9	11.4
Diluted earnings per share	Rs	4.0	3.8
Price to Cash Flow	x	90.7	38.6
TTM P/E ratio	x	66.0	116.6
Price / Book Value ratio	x	1.0	1.2
Market Cap	Rs m	17,198	24,260
Dividends per share (Unadj.)	Rs	6.0	6.0

Ratio Analysis for MAHINDRA LIFESPACE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.7x during FY18, from 2.7x 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 3.2x during FY18, from 5.7x 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 2.9% during FY18, from 3.6% 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 improved and stood at 6.2% during FY18, from 5.8% 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 3.3% during FY18, from 2.8% 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	2.7	2.7
Debtors’ Days	Days	364	936
Interest coverage	x	5.7	3.2
Debt to equity ratio	x	0.2	0.0
Return on assets	%	2.8	3.3
Return on equity	%	3.6	2.9
Return on capital employed	%	5.8	6.2

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

MAHINDRA LIFESPACE Share Price Performance

Over the last one year, MAHINDRA LIFESPACE share price has moved up from Rs 387.1 to Rs 442.4, registering a gain of Rs 55.3 or around 14.3%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,229.9 (down 1.1%). Over the last one year it has moved up from 1,600.0 to 2,229.9, a gain of 630 points (up 39.4%).

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

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

Read: Latest Annual Report Analysis of MAHINDRA LIFESPACE