GREAVES COTTON 2017-18 Annual Report Analysis

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GREAVES COTTON 2017-18 Annual Report Analysis
Tue, 18 Dec

GREAVES COTTON 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.

GREAVES COTTON Income Statement Analysis

  • Operating income during the year rose 9.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 4.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.2% in FY18 as against 14.9% in FY17.
  • Depreciation charges increased by 11.8% increased by 0.0% YoY, respectively.
  • Other income declined by 9.7% YoY.
  • Net profit for the year grew by 9.8% YoY.
  • Net profit margins during the year grew from 10.9% in FY17 to 11.0% in FY18.

GREAVES COTTON Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 16,344 17,921 9.6%
Other income Rs m 505 456 -9.7%
Total Revenues Rs m 16,849 18,377 9.1%
Gross profit Rs m 2,434 2,553 4.9%
Depreciation Rs m 469 524 11.8%
Interest Rs m 8 8 0.0%
Profit before tax Rs m 2,462 2,477 0.6%
Tax Rs m 680 930 36.7%
Profit after tax Rs m 1,841 2,022 9.8%
Gross profit margin % 14.9 14.2
Effective tax rate % 27.6 37.5
Net profit margin % 10.9 11.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GREAVES COTTON Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 4 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 15.9%.
  • Current assets rose 12% and stood at Rs 7 billion, while fixed assets fell 0% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 13 billion as against Rs 12 billion during FY17, thereby witnessing a growth of 8%.

GREAVES COTTON Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 9,253 9,650 4.3
 
Current Liabilities Rs m 3,051 3,537 15.9
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 12,499 13,462 7.7
 
Current assets Rs m 6,330 7,076 11.8
Fixed Assets Rs m 3,068 3,054 -0.5
Total Assets Rs m 12,499 13,462 7.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GREAVES COTTON Cash Flow Statement Analysis

  • GREAVES COTTON's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion, an improvement of 144.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -972 million 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 199 million from the Rs 24 million net cash flows seen during FY17.

GREAVES COTTON 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 1,144 2,796 144.4%
Cash Flow from Investing Activities Rs m 359 -972 -
Cash Flow from Financing Activities Rs m -1,479 -1,625 -
Net Cash Flow Rs m 24 199 733.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for GREAVES COTTON

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.3, an improvement from the EPS of Rs 7.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 125.0, stands at 15.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.0 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 66.9 73.4
TTM Earnings per share Rs 7.5 8.3
Diluted earnings per share Rs 7.5 8.3
Price to Cash Flow x 13.2 12.0
TTM P/E ratio x 15.1 15.1
Price / Book Value ratio x 3.9 3.7
Market Cap Rs m 30,514 30,514
Dividends per share (Unadj.) Rs 5.5 5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for GREAVES COTTON

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.0x during FY18, from 2.1x 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 306.8x during FY18, from 304.9x 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 21.0% during FY18, from 19.9% 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 improved and stood at 30.7% during FY18, from 27.3% 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 15.1% during FY18, from 14.8% 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 2.1 2.0
Debtors’ Days Days 60 51
Interest coverage x 304.9 306.8
Debt to equity ratio x 0.0 0.0
Return on assets % 14.8 15.1
Return on equity % 19.9 21.0
Return on capital employed % 27.3 30.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how GREAVES COTTON has performed over the last 5 years, please visit here.

GREAVES COTTON Share Price Performance

Over the last one year, GREAVES COTTON share price has moved up from Rs 114.7 to Rs 125.0, registering a gain of Rs 10.3 or around 8.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,576.6 (up 0.6%). Over the last one year it has moved up from 18,447.1 to 18,576.6, a gain of 129 points (up 0.7%).

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

(To know more, check out historical annual results for GREAVES COTTON and quarterly results for GREAVES COTTON)

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