GUJARAT STATE FERTILIZERS 2017-18 Annual Report Analysis

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GUJARAT STATE FERTILIZERS 2017-18 Annual Report Analysis
Thu, 3 Jan

GUJARAT STATE FERTILIZERS 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 STATE FERTILIZERS Income Statement Analysis

  • Operating income during the year rose 19.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 15.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.0% in FY18 as against 9.3% in FY17.
  • Depreciation charges increased by 15.3% and finance costs decreased by 20.9% YoY, respectively.
  • Other income grew by 75.8% YoY.
  • Net profit for the year grew by 11.6% YoY.
  • Net profit margins during the year declined from 8.0% in FY17 to 7.4% in FY18.

GUJARAT STATE FERTILIZERS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 52,645 62,659 19.0%
Other income Rs m 563 990 75.8%
Total Revenues Rs m 53,208 63,648 19.6%
Gross profit Rs m 4,891 5,649 15.5%
Depreciation Rs m 1,036 1,195 15.3%
Interest Rs m 649 514 -20.9%
Profit before tax Rs m 3,768 4,930 30.8%
Tax Rs m -425 192 -145.2%
Profit after tax Rs m 4,245 4,737 11.6%
Gross profit margin % 9.3 9.0
Effective tax rate % -11.3 3.9
Net profit margin % 8.0 7.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GUJARAT STATE FERTILIZERS Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 23 billion as compared to Rs 18 billion in FY17, thereby witnessing an increase of 24.0%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 519 million during FY17, a growth of 285.6%.
  • Current assets rose 10% and stood at Rs 41 billion, while fixed assets rose 25% and stood at Rs 29 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 103 billion as against Rs 91 billion during FY17, thereby witnessing a growth of 13%.

GUJARAT STATE FERTILIZERS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 66,190 73,034 10.3
 
Current Liabilities Rs m 18,366 22,777 24.0
Long-term Debt Rs m 519 2,000 285.6
Total Liabilities Rs m 90,905 103,146 13.5
 
Current assets Rs m 37,493 41,408 10.4
Fixed Assets Rs m 22,950 28,710 25.1
Total Assets Rs m 90,905 103,146 13.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GUJARAT STATE FERTILIZERS Cash Flow Statement Analysis

  • GUJARAT STATE FERTILIZERS's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -5 billion, an improvement of 103.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 1 billion, an improvement of 120% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 71 million from the Rs 169 million net cash flows seen during FY17.

GUJARAT STATE FERTILIZERS 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 9,113 3,575 -60.8%
Cash Flow from Investing Activities Rs m -2,382 -4,845 -
Cash Flow from Financing Activities Rs m -6,562 1,341 -
Net Cash Flow Rs m 169 71 -57.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for GUJARAT STATE FERTILIZERS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.9, an improvement from the EPS of Rs 10.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 111.2, stands at 6.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.5 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 132.1 157.2
TTM Earnings per share Rs 10.7 11.9
Diluted earnings per share Rs 10.7 11.9
Price to Cash Flow x 8.5 7.5
TTM P/E ratio x 6.5 6.5
Price / Book Value ratio x 0.6 0.8
Market Cap Rs m 44,311 44,313
Dividends per share (Unadj.) Rs 2.2 2.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for GUJARAT STATE FERTILIZERS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.8x during FY18, from 2.0x 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 10.6x during FY18, from 6.8x 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 6.5% during FY18, from 6.4% 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 7.3% during FY18, from 6.7% 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 5.1% during FY18, from 5.4% 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 2.0 1.8
Debtors’ Days Days 189 155
Interest coverage x 6.8 10.6
Debt to equity ratio x 0.0 0.0
Return on assets % 5.4 5.1
Return on equity % 6.4 6.5
Return on capital employed % 6.7 7.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

GUJARAT STATE FERTILIZERS Share Price Performance

Over the last one year, GUJARAT STATE FERTILIZERS share price has moved up from Rs 150.5 to Rs 111.2, registering a loss of Rs 39.3 or around 26.1%.

Overall, the S&P BSE SENSEX is up 5.2% over the year.

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

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