GUJARAT NARMADA 2017-18 Annual Report Analysis

Sat, 31 Mar

GUJARAT NARMADA 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 NARMADA Income Statement Analysis

• Operating income during the year rose 36.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 47.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.2% in FY18 as against 22.3% in FY17.
• Depreciation charges increased by 7.6% and finance costs decreased by 51.0% YoY, respectively.
• Other income declined by 37.1% YoY.
• Net profit for the year grew by 51.4% YoY.
• Net profit margins during the year grew from 12.3% in FY17 to 13.7% in FY18.

GUJARAT NARMADA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	42,327	57,580	36.0%
Other income	Rs m	2,249	1,415	-37.1%
Total Revenues	Rs m	44,576	58,996	32.3%
Gross profit	Rs m	9,451	13,906	47.1%
Depreciation	Rs m	2,514	2,705	7.6%
Interest	Rs m	2,034	997	-51.0%
Profit before tax	Rs m	7,151	11,619	62.5%
Tax	Rs m	1,938	3,725	92.2%
Profit after tax	Rs m	5,213	7,895	51.4%
Gross profit margin	%	22.3	24.2
Effective tax rate	%	27.1	32.1
Net profit margin	%	12.3	13.7

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GUJARAT NARMADA Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 12 billion as compared to Rs 21 billion in FY17, thereby witnessing an decrease of -43.9%.
• Current assets fell 14% and stood at Rs 21 billion, while fixed assets fell 7% and stood at Rs 51 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 72 billion as against Rs 80 billion during FY17, thereby witnessing a fall of 9%.

GUJARAT NARMADA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	38,552	45,170	17.2
Current Liabilities	Rs m	21,068	11,815	-43.9
Long-term Debt	Rs m	5,334	0	-100.0
Total Liabilities	Rs m	79,562	72,311	-9.1
Current assets	Rs m	24,570	21,074	-14.2
Fixed Assets	Rs m	54,992	51,237	-6.8
Total Assets	Rs m	79,562	72,311	-9.1

GUJARAT NARMADA Cash Flow Statement Analysis

• GUJARAT NARMADA's cash flow from operating activities (CFO) during FY18 stood at Rs 18 billion, an improvement of 25.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 495 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -14 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 5 billion from the Rs 3 billion net cash flows seen during FY17.

GUJARAT NARMADA 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	14,452	18,186	25.8%
Cash Flow from Investing Activities	Rs m	-528	495	-
Cash Flow from Financing Activities	Rs m	-10,727	-14,000	-
Net Cash Flow	Rs m	3,197	4,680	46.4%

Current Valuations for GUJARAT NARMADA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 50.8, an improvement from the EPS of Rs 33.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 364.0, stands at 7.2 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 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 5.9 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	272.3	370.5
TTM Earnings per share	Rs	33.5	50.8
Diluted earnings per share	Rs	33.5	50.8
Price to Cash Flow	x	5.8	5.9
TTM P/E ratio	x	8.6	7.2
Price / Book Value ratio	x	0.8	1.4
Market Cap	Rs m	29,075	62,214
Dividends per share (Unadj.)	Rs	5.0	7.5

Ratio Analysis for GUJARAT NARMADA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY18, from 1.2x 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 12.7x during FY18, from 4.5x 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 17.5% during FY18, from 13.5% 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 27.9% during FY18, from 20.9% 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 improved and stood at 12.3% during FY18, from 9.1% 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	1.2	1.8
Debtors’ Days	Days	10	7
Interest coverage	x	4.5	12.7
Debt to equity ratio	x	0.1	0.0
Return on assets	%	9.1	12.3
Return on equity	%	13.5	17.5
Return on capital employed	%	20.9	27.9

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

GUJARAT NARMADA Share Price Performance

Over the last one year, GUJARAT NARMADA share price has moved up from Rs 287.5 to Rs 364.0, registering a gain of Rs 76.5 or around 26.6%.

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

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

Read: Latest Annual Report Analysis of GUJARAT NARMADA