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HAVELLS INDIA 2017-18 Annual Report Analysis
Sat, 31 Mar

HAVELLS INDIA 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.

HAVELLS INDIA Income Statement Analysis

  • Operating income during the year rose 40.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 46.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.0% in FY18 as against 12.5% in FY17.
  • Depreciation charges increased by 16.6% and finance costs increased by 302.8% YoY, respectively.
  • Other income declined by 21.5% YoY.
  • Net profit for the year grew by 32.5% YoY.
  • Net profit margins during the year declined from 8.8% in FY17 to 8.2% in FY18.

HAVELLS INDIA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 56,986 80,238 40.8%
Other income Rs m 1,501 1,179 -21.5%
Total Revenues Rs m 58,487 81,417 39.2%
Gross profit Rs m 7,114 10,411 46.4%
Depreciation Rs m 1,205 1,405 16.6%
Interest Rs m 133 537 302.8%
Profit before tax Rs m 7,276 9,648 32.6%
Tax Rs m 2,288 3,038 32.8%
Profit after tax Rs m 4,989 6,610 32.5%
Gross profit margin % 12.5 13.0
Effective tax rate % 31.4 31.5
Net profit margin % 8.8 8.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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HAVELLS INDIA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 25 billion as compared to Rs 18 billion in FY17, thereby witnessing an increase of 44.5%.
  • Long-term debt stood at Rs 810 million as compared to Rs 0 million during FY17, a fall of 0.0%.
  • Current assets rose 6% and stood at Rs 37 billion, while fixed assets rose 73% and stood at Rs 29 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 66 billion as against Rs 52 billion during FY17, thereby witnessing a growth of 28%.

HAVELLS INDIA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 32,768 37,292 13.8
 
Current Liabilities Rs m 17,505 25,301 44.5
Long-term Debt Rs m 0 810 0.0
Total Liabilities Rs m 51,677 66,075 27.9
 
Current assets Rs m 34,895 37,065 6.2
Fixed Assets Rs m 16,782 29,010 72.9
Total Assets Rs m 51,677 66,075 27.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HAVELLS INDIA Cash Flow Statement Analysis

  • HAVELLS INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 11 billion, an improvement of 43.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -9 billion, an improvement of 337.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -3 billion from the Rs 4 billion net cash flows seen during FY17.

HAVELLS INDIA 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 7,671 10,999 43.4%
Cash Flow from Investing Activities Rs m -2,160 -9,441 -
Cash Flow from Financing Activities Rs m -975 -4,091 -
Net Cash Flow Rs m 4,499 -2,554 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HAVELLS INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.6, an improvement from the EPS of Rs 8.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 487.8, stands at 42.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 8.2 times, while the price to sales ratio stands at 3.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 40.0 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 91.2 128.4
TTM Earnings per share Rs 8.0 10.6
Diluted earnings per share Rs 8.0 10.6
Price to Cash Flow x 47.3 40.0
TTM P/E ratio x 54.4 42.9
Price / Book Value ratio x 7.4 8.6
Market Cap Rs m 243,256 320,920
Dividends per share (Unadj.) Rs 3.5 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HAVELLS INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.5x 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 19.0x during FY18, from 55.5x 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 17.7% during FY18, from 15.2% 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 26.7% during FY18, from 22.6% 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 10.8% during FY18, from 9.9% 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 1.5
Debtors’ Days Days 1 1
Interest coverage x 55.5 19.0
Debt to equity ratio x 0.0 0.0
Return on assets % 9.9 10.8
Return on equity % 15.2 17.7
Return on capital employed % 22.6 26.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how HAVELLS INDIA has performed over the last 5 years, please visit here.

HAVELLS INDIA Share Price Performance

Over the last one year, HAVELLS INDIA share price has moved up from Rs 468.2 to Rs 487.8, registering a gain of Rs 19.6 or around 4.2%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 22,261.9 (up 0.2%). Over the last one year it has moved up from 15,257.3 to 22,261.9, a gain of 7,005 points (up 45.9%).

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

(To know more, check out historical annual results for HAVELLS INDIA and quarterly results for HAVELLS INDIA)

Annual Report FAQs

What is the current share price of HAVELLS INDIA?

HAVELLS INDIA currently trades at Rs 1,501.6 per share. You can check out the latest share price performance of HAVELLS INDIA here...

What was the revenue of HAVELLS INDIA in FY18? How does it compare to earlier years?

The revenues of HAVELLS INDIA stood at Rs 81,417 m in FY18, which was up 39.2% compared to Rs 58,487 m reported in FY17.

HAVELLS INDIA's revenue has grown from Rs 72,974 m in FY16 to Rs 81,417 m in FY18.

Over the past 3 years, the revenue of HAVELLS INDIA has grown at a CAGR of 5.6%.

What was the net profit of HAVELLS INDIA in FY18? How does it compare to earlier years?

The net profit of HAVELLS INDIA stood at Rs 6,610 m in FY18, which was up 32.5% compared to Rs 4,989 m reported in FY17.

This compares to a net profit of Rs 12,987 m in FY16.

Over the past 3 years, HAVELLS INDIA net profit has grown at a CAGR of -28.7%.

What does the cash flow statement of HAVELLS INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of HAVELLS INDIA reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 10,999 m as compared to Rs 7,671 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -9,441 m as compared to Rs -2,160 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -4,091 m as compared to Rs -975 m in FY17.

Here's the cash flow statement of HAVELLS INDIA for the past 3 years.

(Rs m)FY16FY17FY18
From Operations5,1347,67110,999
From Investments353-2,160-9,441
From Financial Activity-6,213-975-4,091
Net Cashflow-2,2874,499-2,554

What does the Key Ratio analysis of HAVELLS INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of HAVELLS INDIA reveals:

  • Operating profit margins witnessed a fall and down at 13.0% in FY18 as against 12.5% in FY17.
  • Net profit margins declined from 8.8% in FY17 to 8.2% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.0 in FY17.

Here's the ratio/financial analysis of HAVELLS INDIA for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)22.512.513.0
Net Profit Margin (%)18.08.88.2
Debt to Equity Ratio (x)0.00.00.0

Read: Latest Annual Report Analysis of HAVELLS INDIA

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