HERITAGE FOOD 2017-18 Annual Report Analysis

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HERITAGE FOOD 2017-18 Annual Report Analysis
Thu, 20 Dec

HERITAGE FOOD 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.

HERITAGE FOOD Income Statement Analysis

  • Operating income during the year rose 27.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 60.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.8% in FY18 as against 19.1% in FY17.
  • Depreciation charges increased by 51.5% and finance costs increased by 88.0% YoY, respectively.
  • Other income grew by 84.4% YoY.
  • Net profit for the year declined by 78.5% YoY.
  • Net profit margins during the year declined from 15.6% in FY17 to 2.6% in FY18.

HERITAGE FOOD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 18,565 23,731 27.8%
Other income Rs m 42 77 84.4%
Total Revenues Rs m 18,607 23,808 28.0%
Gross profit Rs m 3,538 1,382 -60.9%
Depreciation Rs m 250 378 51.5%
Interest Rs m 97 182 88.0%
Profit before tax Rs m 3,233 898 -72.2%
Tax Rs m 324 271 -16.3%
Profit after tax Rs m 2,909 627 -78.5%
Gross profit margin % 19.1 5.8
Effective tax rate % 10.0 30.2
Net profit margin % 15.6 2.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HERITAGE FOOD Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 3 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 26.5%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 738 million during FY17, a growth of 92.9%.
  • Current assets rose 23% and stood at Rs 3 billion, while fixed assets rose 39% and stood at Rs 4 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 17 billion as against Rs 10 billion during FY17, thereby witnessing a growth of 71%.

HERITAGE FOOD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 5,908 7,777 31.6
 
Current Liabilities Rs m 2,576 3,259 26.5
Long-term Debt Rs m 738 1,423 92.9
Total Liabilities Rs m 9,958 17,066 71.4
 
Current assets Rs m 2,070 2,540 22.7
Fixed Assets Rs m 3,050 4,233 38.8
Total Assets Rs m 9,958 17,066 71.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HERITAGE FOOD Cash Flow Statement Analysis

  • HERITAGE FOOD's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion, an improvement of 5.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion, an improvement of 67.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 555 million, an improvement of 540% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -234 million from the Rs -238 million net cash flows seen during FY17.

HERITAGE FOOD 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 1,147 1,212 5.7%
Cash Flow from Investing Activities Rs m -1,198 -2,000 -
Cash Flow from Financing Activities Rs m -126 555 -
Net Cash Flow Rs m -238 -234 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HERITAGE FOOD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.0, an decline from the EPS of Rs 125.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 527.4, stands at 30.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 24.3 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 800.2 1,022.9
TTM Earnings per share Rs 125.4 27.0
Diluted earnings per share Rs 62.7 13.5
Price to Cash Flow x 3.9 24.3
TTM P/E ratio x 15.4 30.9
Price / Book Value ratio x 3.3 2.1
Market Cap Rs m 12,235 24,468
Dividends per share (Unadj.) Rs 4.0 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for HERITAGE FOOD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.8x during FY18, from 0.8x 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 5.9x during FY18, from 34.3x 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 8.1% during FY18, from 49.2% 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 declined and down at 11.7% during FY18, from 50.1% 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 4.7% during FY18, from 30.2% 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 0.8 0.8
Debtors’ Days Days 3 2
Interest coverage x 34.3 5.9
Debt to equity ratio x 0.1 0.2
Return on assets % 30.2 4.7
Return on equity % 49.2 8.1
Return on capital employed % 50.1 11.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how HERITAGE FOOD has performed over the last 5 years, please visit here.

HERITAGE FOOD Share Price Performance

Over the last one year, HERITAGE FOOD share price has moved up from Rs 828.2 to Rs 527.4, registering a loss of Rs 300.8 or around 36.3%.

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

(To know more, check out historical annual results for HERITAGE FOOD and quarterly results for HERITAGE FOOD)

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Related Views on News

HERITAGE FOOD Announces Quarterly Results (2QFY20); Net Profit Down 48.4% (Quarterly Result Update)

Nov 6, 2019 | Updated on Nov 6, 2019

For the quarter ended September 2019, HERITAGE FOOD has posted a net profit of Rs 109 m (down 48.4% YoY). Sales on the other hand came in at Rs 7 bn (up 9.7% YoY). Read on for a complete analysis of HERITAGE FOOD's quarterly results.

HERITAGE FOOD 2018-19 Annual Report Analysis (Annual Result Update)

Sep 16, 2019 | Updated on Sep 16, 2019

Here's an analysis of the annual report of HERITAGE FOOD for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of HERITAGE FOOD. Also includes updates on the valuation of HERITAGE FOOD.

HERITAGE FOOD Announces Quarterly Results (1QFY20); Net Profit Down 11.6% (Quarterly Result Update)

Aug 2, 2019 | Updated on Aug 2, 2019

For the quarter ended June 2019, HERITAGE FOOD has posted a net profit of Rs 190 m (down 11.6% YoY). Sales on the other hand came in at Rs 7 bn (up 7.6% YoY). Read on for a complete analysis of HERITAGE FOOD's quarterly results.

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