X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
HCL TECH. 2017-18 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

HCL TECH. 2017-18 Annual Report Analysis
Wed, 28 Nov

HCL TECH. 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.

HCL TECH. Income Statement Analysis

  • Operating income during the year rose 6.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 8.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.2% in FY18 as against 21.8% in FY17.
  • Depreciation charges increased by 67.0% and finance costs decreased by 22.6% YoY, respectively.
  • Other income grew by 13.4% YoY.
  • Net profit for the year grew by 1.3% YoY.
  • Net profit margins during the year declined from 17.7% in FY17 to 16.8% in FY18.

HCL TECH. Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 475,675 505,690 6.3%
Other income Rs m 10,733 12,170 13.4%
Total Revenues Rs m 486,409 517,860 6.5%
Gross profit Rs m 103,846 112,460 8.3%
Depreciation Rs m 8,281 13,830 67.0%
Interest Rs m 891 690 -22.6%
Profit before tax Rs m 105,407 110,110 4.5%
Tax Rs m 19,363 23,020 18.9%
Profit after tax Rs m 86,065 87,220 1.3%
Gross profit margin % 21.8 22.2
Effective tax rate % 18.4 20.9
Net profit margin % 17.7 16.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HCL TECH. Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 101 billion as compared to Rs 113 billion in FY17, thereby witnessing an decrease of -10.9%.
  • Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY17, a fall of 11.7%.
  • Current assets fell 8% and stood at Rs 244 billion, while fixed assets rose 21% and stood at Rs 191 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 480 billion as against Rs 458 billion during FY17, thereby witnessing a growth of 5%.

HCL TECH. Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 329,499 363,860 10.4
 
Current Liabilities Rs m 113,417 101,070 -10.9
Long-term Debt Rs m 3,826 3,380 -11.7
Total Liabilities Rs m 457,694 480,230 4.9
 
Current assets Rs m 264,698 243,860 -7.9
Fixed Assets Rs m 158,097 190,730 20.6
Total Assets Rs m 457,694 480,230 4.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HCL TECH. Cash Flow Statement Analysis

  • HCL TECH.'s cash flow from operating activities (CFO) during FY18 stood at Rs 83 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -23 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -57 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 4 billion from the Rs 6 billion net cash flows seen during FY17.

HCL TECH. 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 89,951 83,280 -7.4%
Cash Flow from Investing Activities Rs m -38,330 -22,830 -
Cash Flow from Financing Activities Rs m -45,170 -57,140 -
Net Cash Flow Rs m 5,881 3,780 -35.7%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HCL TECH.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 62.6, an improvement from the EPS of Rs 60.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,020.4, stands at 15.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 2.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.3 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 333.4 363.2
TTM Earnings per share Rs 60.3 62.6
Diluted earnings per share Rs 61.0 61.8
Price to Cash Flow x 15.4 14.3
TTM P/E ratio x 15.7 15.5
Price / Book Value ratio x 3.5 3.5
Market Cap Rs m 1,455,815 1,439,623
Dividends per share (Unadj.) Rs 24.0 12.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for HCL TECH.

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.4x during FY18, from 2.3x 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 160.6x during FY18, from 119.3x 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 24.0% during FY18, from 26.1% 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 30.2% during FY18, from 31.9% 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 18.3% during FY18, from 19.0% 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 2.3 2.4
Debtors’ Days Days 64 70
Interest coverage x 119.3 160.6
Debt to equity ratio x 0.0 0.0
Return on assets % 19.0 18.3
Return on equity % 26.1 24.0
Return on capital employed % 31.9 30.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how HCL TECH. has performed over the last 5 years, please visit here.

HCL TECH. Share Price Performance

Over the last one year, HCL TECH. share price has moved up from Rs 859.1 to Rs 1,020.4, registering a gain of Rs 161.3 or around 18.8%.

Meanwhile, the S&P BSE IT Index is trading at Rs 14,016.8 (up 1.6%). Over the last one year it has moved up from 10,851.5 to 14,016.8, a gain of 3,165 points (up 29.2%).

Overall, the S&P BSE SENSEX is up 5.9% over the year.

(To know more, check out historical annual results for HCL TECH. and quarterly results for HCL TECH.)

Equitymaster requests your view! Post a comment on "HCL TECH. 2017-18 Annual Report Analysis". Click here!

  

Related Views on News

HCL TECHNOLOGIES at All Time High; BSE IT Index Down 0.1% (Market Updates)

Apr 25, 2019 | Updated on Apr 25, 2019

HCL TECHNOLOGIES share price has hit an all time high at Rs 1,146 (up 0.4%). The BSE IT Index is down by 0.1%. Among the top gainers in the BSE IT Index today are HCL TECHNOLOGIES (up 0.4%) and ORACLE FINANCIAL (up 0.8%). The top losers include BIRLASOFT (down 0.2%) and MINDTREE (down 0.2%).

HCL TECH. Announces Quarterly Results (3QFY19); Net Profit Up 25.5% (Quarterly Result Update)

Jan 30, 2019 | Updated on Jan 30, 2019

For the quarter ended December 2018, HCL TECH. has posted a net profit of Rs 26 bn (up 25.5% YoY). Sales on the other hand came in at Rs 157 bn (up 22.6% YoY). Read on for a complete analysis of HCL TECH.'s quarterly results.

HCL TECH. 2017-18 Annual Report Analysis (Annual Result Update)

Dec 18, 2018 | Updated on Dec 18, 2018

Here's an analysis of the annual report of HCL TECH. for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of HCL TECH.. Also includes updates on the valuation of HCL TECH..

HCL TECH. Announces Quarterly Results (2QFY19); Net Profit Up 15.5% (Quarterly Result Update)

Nov 9, 2018 | Updated on Nov 9, 2018

For the quarter ended September 2018, HCL TECH. has posted a net profit of Rs 25 bn (up 15.5% YoY). Sales on the other hand came in at Rs 149 bn (up 19.5% YoY). Read on for a complete analysis of HCL TECH.'s quarterly results.

HCL Technologies: A Dull Performance (Quarterly Results Update - Detailed)

Dec 28, 2017

Improvement in profitability looks difficult for HCL tech.

More Views on News

Most Popular

This is Why the Stock of Jubilant FoodWorks Went Up 1,160%(The 5 Minute Wrapup)

Apr 12, 2019

This critical business strategy has enabled companies to scale their operations faster.

Pocketing Massive Gains with HDFC And HDFC Bank(Profit Hunter)

Apr 12, 2019

Here's how one could have generated gains of Rs 59,250 in 10 days by trading HDFC and HDFC Bank with a capital of Rs 4 lakh.

My Master Series on How to Trade Election 2019(Profit Hunter)

Apr 16, 2019

For 30 years he has watched how elections impact the markets, and practiced how to profit from it. Now he is here...telling you everything. Read on...

Election Series: Follow the World's Biggest Traders To See Where the Money Flows(The 5 Minute Wrapup)

Apr 17, 2019

20% of all the traders bring in 80% of the money. Watch these 20% and you get a working idea of which way the wind is blowing.

A Letter to You from India's No. 1 Trader(The 5 Minute Wrapup)

Apr 15, 2019

It's our great pleasure to introduce Vijay Bhambwani to our readers - we consider Vijay to be India's best trader. Read on to find out why...

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK HCL TECHNOLOGIES

  • Track your investment in HCL TECHNOLOGIES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON HCL TECHNOLOGIES

HCL TECHNOLOGIES - GTL LTD COMPARISON

COMPARE HCL TECHNOLOGIES WITH

MARKET STATS