GREENPLY INDUSTRIES 2017-18 Annual Report Analysis

Sat, 31 Mar

GREENPLY INDUSTRIES 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.

GREENPLY INDUSTRIES Income Statement Analysis

• Operating income during the year rose 8.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.7% in FY18 as against 15.8% in FY17.
• Depreciation charges decreased by 1.7% and finance costs decreased by 40.0% YoY, respectively.
• Other income declined by 42.7% YoY.
• Net profit for the year declined by 4.0% YoY.
• Net profit margins during the year declined from 7.9% in FY17 to 7.0% in FY18.

GREENPLY INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	15,540	16,894	8.7%
Other income	Rs m	38	22	-42.7%
Total Revenues	Rs m	15,578	16,916	8.6%
Gross profit	Rs m	2,449	2,307	-5.8%
Depreciation	Rs m	507	498	-1.7%
Interest	Rs m	189	114	-40.0%
Profit before tax	Rs m	1,791	1,717	-4.1%
Tax	Rs m	559	535	-4.2%
Profit after tax	Rs m	1,232	1,182	-4.0%
Gross profit margin	%	15.8	13.7
Effective tax rate	%	31.2	31.2
Net profit margin	%	7.9	7.0

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GREENPLY INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 6 billion as compared to Rs 5 billion in FY17, thereby witnessing an increase of 30.5%.
• Long-term debt stood at Rs 5 billion as compared to Rs 3 billion during FY17, a growth of 82.4%.
• Current assets rose 8% and stood at Rs 6 billion, while fixed assets rose 67% and stood at Rs 16 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 23 billion as against Rs 16 billion during FY17, thereby witnessing a growth of 45%.

GREENPLY INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	7,727	8,775	13.6
Current Liabilities	Rs m	4,718	6,157	30.5
Long-term Debt	Rs m	2,658	4,848	82.4
Total Liabilities	Rs m	15,745	22,825	45.0
Current assets	Rs m	5,976	6,482	8.5
Fixed Assets	Rs m	9,769	16,343	67.3
Total Assets	Rs m	15,745	22,825	45.0

GREENPLY INDUSTRIES Cash Flow Statement Analysis

• GREENPLY INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 2 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -502 million from the Rs 387 million net cash flows seen during FY17.

GREENPLY INDUSTRIES 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	2,120	1,134	-46.5%
Cash Flow from Investing Activities	Rs m	-3,628	-3,280	-
Cash Flow from Financing Activities	Rs m	1,896	1,644	-13.3%
Net Cash Flow	Rs m	387	-502	-

Current Valuations for GREENPLY INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.6, an decline from the EPS of Rs 10.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 305.2, stands at 27.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 23.9 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	126.7	137.8
TTM Earnings per share	Rs	10.0	9.6
Diluted earnings per share	Rs	10.0	9.6
Price to Cash Flow	x	20.0	23.9
TTM P/E ratio	x	25.7	27.6
Price / Book Value ratio	x	3.8	4.6
Market Cap	Rs m	29,553	40,225
Dividends per share (Unadj.)	Rs	0.6	0.6

Ratio Analysis for GREENPLY INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY18, from 1.3x 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 16.1x during FY18, from 10.5x 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 declined and down at 13.5% during FY18, from 15.9% 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 13.4% during FY18, from 19.1% 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 declined and down at 5.7% during FY18, from 9.0% 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	1.3	1.1
Debtors’ Days	Days	701	617
Interest coverage	x	10.5	16.1
Debt to equity ratio	x	0.3	0.6
Return on assets	%	9.0	5.7
Return on equity	%	15.9	13.5
Return on capital employed	%	19.1	13.4

To see how GREENPLY INDUSTRIES has performed over the last 5 years, please visit here.

GREENPLY INDUSTRIES Share Price Performance

Over the last one year, GREENPLY INDUSTRIES share price has moved up from Rs 282.6 to Rs 305.2, registering a gain of Rs 22.7 or around 8.0%.

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

(To know more, check out historical annual results for GREENPLY INDUSTRIES and quarterly results for GREENPLY INDUSTRIES)

Read: Latest Annual Report Analysis of GREENPLY INDUSTRIES