VODAFONE IDEA 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?  

VODAFONE IDEA 2017-18 Annual Report Analysis
Fri, 28 Dec

VODAFONE IDEA 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.

VODAFONE IDEA Income Statement Analysis

  • Operating income during the year fell 20.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 40.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.4% in FY18 as against 28.7% in FY17.
  • Depreciation charges increased by 7.4% and finance costs increased by 20.9% YoY, respectively.
  • Other income grew by 15.0% YoY.
  • Net profit for the year grew by 942.8% YoY.
  • Net profit margins during the year declined from 1.1% in FY17 to 14.6% in FY18.

VODAFONE IDEA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 355,757 282,789 -20.5%
Other income Rs m 3,069 3,529 15.0%
Total Revenues Rs m 358,827 286,319 -20.2%
Gross profit Rs m 102,146 60,476 -40.8%
Depreciation Rs m 78,272 84,091 7.4%
Interest Rs m 39,794 48,130 20.9%
Profit before tax Rs m -12,851 -68,216 430.8%
Tax Rs m -4,635 -23,311 402.9%
Profit after tax Rs m -3,997 -41,682 942.8%
Gross profit margin % 28.7 21.4
Effective tax rate % 36.1 34.2
Net profit margin % -1.1 -14.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VODAFONE IDEA Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 106 billion as compared to Rs 171 billion in FY17, thereby witnessing an decrease of -37.7%.
  • Long-term debt stood at Rs 569 billion as compared to Rs 516 billion during FY17, a growth of 10.3%.
  • Current assets rose 20% and stood at Rs 92 billion, while fixed assets rose 4% and stood at Rs 251 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 986 billion as against Rs 967 billion during FY17, thereby witnessing a growth of 2%.

VODAFONE IDEA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 247,322 272,625 10.2
 
Current Liabilities Rs m 170,615 106,337 -37.7
Long-term Debt Rs m 516,378 569,408 10.3
Total Liabilities Rs m 967,047 985,772 1.9
 
Current assets Rs m 76,309 91,837 20.3
Fixed Assets Rs m 241,746 251,062 3.9
Total Assets Rs m 967,047 985,772 1.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VODAFONE IDEA Cash Flow Statement Analysis

  • VODAFONE IDEA's cash flow from operating activities (CFO) during FY18 stood at Rs 53 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -93 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 39 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -144 million from the Rs -6 billion net cash flows seen during FY17.

VODAFONE IDEA 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 104,757 53,324 -49.1%
Cash Flow from Investing Activities Rs m -155,557 -92,717 -
Cash Flow from Financing Activities Rs m 45,061 39,249 -12.9%
Net Cash Flow Rs m -5,739 -144 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for VODAFONE IDEA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -9.6, an decline from the EPS of Rs -1.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 37.6, stands at -5.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.5 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 98.7 64.9
TTM Earnings per share Rs -1.1 -9.6
Diluted earnings per share Rs -1.1 -11.6
Price to Cash Flow x 1.9 3.5
TTM P/E ratio x -5.4 -5.4
Price / Book Value ratio x 1.4 1.5
Market Cap Rs m 135,560 135,399
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for VODAFONE IDEA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.9x during FY18, from 0.4x 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 deteriorated and stood at -0.4x during FY18, from 0.7x 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 -15.3% during FY18, from -1.6% 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 -2.0% during FY18, from 4.1% 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 0.7% during FY18, from 3.7% 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 0.4 0.9
Debtors’ Days Days 13 11
Interest coverage x 0.7 -0.4
Debt to equity ratio x 2.1 2.1
Return on assets % 3.7 0.7
Return on equity % -1.6 -15.3
Return on capital employed % 4.1 -2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how VODAFONE IDEA has performed over the last 5 years, please visit here.

VODAFONE IDEA Share Price Performance

Over the last one year, VODAFONE IDEA share price has moved up from Rs 102.2 to Rs 37.6, registering a loss of Rs 64.6 or around 63.2%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,086.6 (up 0.6%). Over the last one year it has moved up from 6,329.5 to 7,086.6, a gain of 757 points (up 12.0%).

Overall, the S&P BSE SENSEX is up 6.5% over the year.

(To know more, check out historical annual results for VODAFONE IDEA and quarterly results for VODAFONE IDEA)

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

  

Related Views on News

VODAFONE IDEA Announces Quarterly Results (1QFY20); Net Profit Down 2607.4% (Quarterly Result Update)

Jul 29, 2019 | Updated on Jul 29, 2019

For the quarter ended June 2019, VODAFONE IDEA has posted a net profit of Rs 49 bn (down 2607.4% YoY). Sales on the other hand came in at Rs 113 bn (up 91.4% YoY). Read on for a complete analysis of VODAFONE IDEA's quarterly results.

VODAFONE IDEA Announces Quarterly Results (4QFY19); Net Profit Down 576.2% (Quarterly Result Update)

May 14, 2019 | Updated on May 14, 2019

For the quarter ended March 2019, VODAFONE IDEA has posted a net profit of Rs 49 bn (down 576.2% YoY). Sales on the other hand came in at Rs 118 bn (up 91.9% YoY). Read on for a complete analysis of VODAFONE IDEA's quarterly results.

More Views on News

Most Popular

My View on ITC(Fast Profits Daily)

Oct 23, 2020

What do the charts say about ITC?

Why ITC and not HUL is my Idea of a Good Investment Right Now(Views On News)

Oct 15, 2020

Rahul Shah discusses HUL's lost decade and its implications for ITC.

Why India's Drone Revolution is a 4x Profit Opportunity(Profit Hunter)

Oct 16, 2020

My research on India's leading defence companies brought me to one major player in drone manufacturing.

The Biggest Wealth Creating Opportunity that No One is Talking About(Profit Hunter)

Oct 14, 2020

The defence sector has gone under the radar despite positive developments. Here's why this sector can't be ignored for long...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

TRACK VODAFONE IDEA

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

VODAFONE IDEA - CHINA MOBILE COMPARISON

COMPARE VODAFONE IDEA WITH

MARKET STATS