MAHINDRA LIFESPACE 2017-18 Annual Report Analysis

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MAHINDRA LIFESPACE 2017-18 Annual Report Analysis
Tue, 18 Dec

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 7.8% and finance costs increased by 104.3% YoY, respectively.
  • Other income grew by 13.2% YoY.
  • Net profit for the year declined by 2.4% YoY.
  • Net profit margins during the year grew from 12.7% in FY17 to 16.0% in FY18.

MAHINDRA LIFESPACE Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 7,622 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 -7.8%
Interest Rs m 202 413 104.3%
Profit before tax Rs m 944 898 -4.8%
Tax Rs m 330 312 -5.5%
Profit after tax Rs m 1,059 1,034 -2.4%
Gross profit margin % 6.6 10.1
Effective tax rate % 35.0 34.7
Net profit margin % 12.7 16.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 fell 3% and stood at Rs 1 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 16,996 20,589 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 1,080 1,045 -3.3
Total Assets Rs m 28,863 29,980 3.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for MAHINDRA LIFESPACE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.1, an decline from the EPS of Rs 25.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 386.4, stands at 25.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 4.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 25.2 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 25.8 20.1
Diluted earnings per share Rs 25.8 25.2
Price to Cash Flow x 24.0 25.2
TTM P/E ratio x 25.5 25.5
Price / Book Value ratio x 1.0 1.2
Market Cap Rs m 15,862 15,846
Dividends per share (Unadj.) Rs 6.0 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for MAHINDRA LIFESPACE

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved 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 5.0% during FY18, from 6.2% 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 8.3% during FY18, from 8.1% 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 4.8% during FY18, from 4.4% 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 36 94
Interest coverage x 5.7 3.2
Debt to equity ratio x 0.2 0.0
Return on assets % 4.4 4.8
Return on equity % 6.2 5.0
Return on capital employed % 8.1 8.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 465.9 to Rs 386.4, registering a loss of Rs 79.5 or around 17.1%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 1,836.8 (up 0.3%). Over the last one year it has moved down from 2,378.1 to 1,836.8, a loss of 541 points (down 22.8%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

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

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