FEDERAL - MOGUL G 2017-18 Annual Report Analysis

Sat, 31 Mar

FEDERAL - MOGUL G 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.

FEDERAL - MOGUL G Income Statement Analysis

• Operating income during the year rose 13.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.6% in FY18 as against 18.8% in FY17.
• Depreciation charges decreased by 2.9% and finance costs decreased by 56.6% YoY, respectively.
• Other income declined by 3.6% YoY.
• Net profit for the year grew by 14.9% YoY.
• Net profit margins during the year grew from 7.3% in FY17 to 7.5% in FY18.

FEDERAL - MOGUL G Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	11,418	12,909	13.1%
Other income	Rs m	120	116	-3.6%
Total Revenues	Rs m	11,538	13,024	12.9%
Gross profit	Rs m	2,146	2,276	6.1%
Depreciation	Rs m	793	770	-2.9%
Interest	Rs m	172	75	-56.6%
Profit before tax	Rs m	1,300	1,547	18.9%
Tax	Rs m	463	585	26.3%
Profit after tax	Rs m	837	962	14.9%
Gross profit margin	%	18.8	17.6
Effective tax rate	%	35.6	37.8
Net profit margin	%	7.3	7.5

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FEDERAL - MOGUL G Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 3 billion as compared to Rs 3 billion in FY17, thereby witnessing an decrease of -18.8%.
• Current assets rose 1% and stood at Rs 5 billion, while fixed assets rose 1% and stood at Rs 6 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 11 billion as against Rs 11 billion during FY17, thereby witnessing a growth of 1%.

FEDERAL - MOGUL G Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	6,131	7,039	14.8
Current Liabilities	Rs m	3,182	2,583	-18.8
Long-term Debt	Rs m	233	0	-100.0
Total Liabilities	Rs m	10,801	10,891	0.8
Current assets	Rs m	4,560	4,595	0.8
Fixed Assets	Rs m	6,240	6,295	0.9
Total Assets	Rs m	10,801	10,891	0.8

FEDERAL - MOGUL G Cash Flow Statement Analysis

• FEDERAL - MOGUL G'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 -721 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -691 million, an improvement of 31% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -33 million from the Rs -273 million net cash flows seen during FY17.

FEDERAL - MOGUL G 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	1,593	1,379	-13.5%
Cash Flow from Investing Activities	Rs m	-863	-721	-
Cash Flow from Financing Activities	Rs m	-1,002	-691	-
Net Cash Flow	Rs m	-273	-33	-

Current Valuations for FEDERAL - MOGUL G

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.3, an improvement from the EPS of Rs 15.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 420.4, stands at 28.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 17.0 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	205.2	232.0
TTM Earnings per share	Rs	15.1	17.3
Diluted earnings per share	Rs	15.1	17.3
Price to Cash Flow	x	18.8	17.0
TTM P/E ratio	x	42.5	28.2
Price / Book Value ratio	x	4.1	4.2
Market Cap	Rs m	24,961	29,507
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for FEDERAL - MOGUL G

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY18, from 1.4x 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 21.7x during FY18, from 8.6x 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 13.7% during FY18, from 13.7% 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 23.0% during FY18, from 23.1% 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 9.5% during FY18, from 9.3% 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	1.4	1.8
Debtors’ Days	Days	614	620
Interest coverage	x	8.6	21.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.3	9.5
Return on equity	%	13.7	13.7
Return on capital employed	%	23.1	23.0

To see how FEDERAL - MOGUL G has performed over the last 5 years, please visit here.

FEDERAL - MOGUL G Share Price Performance

Over the last one year, FEDERAL - MOGUL G share price has moved down from Rs 549.6 to Rs 420.4, registering a loss of Rs 129.3 or around 23.5%.

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

(To know more, check out historical annual results for FEDERAL - MOGUL G and quarterly results for FEDERAL - MOGUL G)

Read: Latest Annual Report Analysis of FEDERAL - MOGUL G