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HERITAGE FOOD 2017-18 Annual Report Analysis
Sat, 31 Mar

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 34.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 371.3% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 10.8% in FY18 as against 5.3% in FY17.
  • Depreciation charges increased by 51.5% and finance costs increased by 81.8% YoY, respectively.
  • Other income grew by 60.6% YoY.
  • Net profit for the year declined by 77.4% YoY.
  • Net profit margins during the year declined from 15.7% 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 17,693 23,728 34.1%
Other income Rs m 2,510 4,030 60.6%
Total Revenues Rs m 20,203 27,758 37.4%
Gross profit Rs m 942 -2,555 -371.3%
Depreciation Rs m 250 378 51.5%
Interest Rs m 109 198 81.8%
Profit before tax Rs m 3,093 899 -70.9%
Tax Rs m 315 271 -13.9%
Profit after tax Rs m 2,778 628 -77.4%
Gross profit margin % 5.3 -10.8
Effective tax rate % 10.2 30.2
Net profit margin % 15.7 2.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

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 84% and stood at Rs 15 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 5,876 7,745 31.8
 
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 7,888 14,526 84.2
Total Assets Rs m 9,958 17,066 71.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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: Accord Fintech, Equitymaster



Current Valuations for HERITAGE FOOD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.5, an decline from the EPS of Rs 119.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 689.5, stands at 58.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 51.1 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 762.6 511.4
TTM Earnings per share Rs 119.7 13.5
Diluted earnings per share Rs 59.9 13.5
Price to Cash Flow x 16.5 51.1
TTM P/E ratio x 74.7 58.7
Price / Book Value ratio x 3.3 6.6
Market Cap Rs m 19,332 51,417
Dividends per share (Unadj.) Rs 2.0 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HERITAGE FOOD

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated 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 5.5x during FY18, from 29.4x 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 47.3% 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 12.0% during FY18, from 48.4% 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 4.8% during FY18, from 29.0% 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 32 20
Interest coverage x 29.4 5.5
Debt to equity ratio x 0.1 0.2
Return on assets % 29.0 4.8
Return on equity % 47.3 8.1
Return on capital employed % 48.4 12.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 down from Rs 1,076.4 to Rs 689.5, registering a loss of Rs 386.9 or around 35.9%.

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

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

Annual Report FAQs

What is the current share price of HERITAGE FOOD?

HERITAGE FOOD currently trades at Rs 337.0 per share. You can check out the latest share price performance of HERITAGE FOOD here...

What was the revenue of HERITAGE FOOD in FY18? How does it compare to earlier years?

The revenues of HERITAGE FOOD stood at Rs 27,758 m in FY18, which was up 37.4% compared to Rs 20,203 m reported in FY17.

HERITAGE FOOD's revenue has grown from Rs 17,263 m in FY14 to Rs 27,758 m in FY18.

Over the past 5 years, the revenue of HERITAGE FOOD has grown at a CAGR of 12.6%.

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

The net profit of HERITAGE FOOD stood at Rs 628 m in FY18, which was down -77.4% compared to Rs 2,778 m reported in FY17.

This compares to a net profit of Rs 554 m in FY16 and a net profit of Rs 284 m in FY15.

Over the past 5 years, HERITAGE FOOD net profit has grown at a CAGR of 8.5%.

What does the cash flow statement of HERITAGE FOOD 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 HERITAGE FOOD reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 1,212 m as compared to Rs 1,147 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -2,000 m as compared to Rs -1,198 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs 555 m as compared to Rs -126 m in FY17.

Here's the cash flow statement of HERITAGE FOOD for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations7475161,2491,1471,212
From Investments-617-475-659-1,198-2,000
From Financial Activity-10-79-546-126555
Net Cashflow121-3845-238-234

What does the Key Ratio analysis of HERITAGE FOOD 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 HERITAGE FOOD reveals:

  • Operating profit margins witnessed a growth and stood at 10.8% in FY18 as against 5.3% in FY17.
  • Net profit margins declined from 15.7% in FY17 to 2.6% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.2 as compared to 0.1 in FY17.

Here's the ratio/financial analysis of HERITAGE FOOD for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)5.64.05.55.3-10.8
Net Profit Margin (%)2.61.42.315.72.6
Debt to Equity Ratio (x)0.20.30.30.10.2

Read: Latest Annual Report Analysis of HERITAGE FOOD

 

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