INDOCO REMEDIES 2017-18 Annual Report Analysis

Thu, 28 Mar

INDOCO REMEDIES 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.

INDOCO REMEDIES Income Statement Analysis

• Operating income during the year fell 3.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.9% in FY18 as against 14.6% in FY17.
• Depreciation charges increased by 7.0% and finance costs increased by 278.6% YoY, respectively.
• Other income grew by 18.1% YoY.
• Net profit for the year declined by 46.6% YoY.
• Net profit margins during the year declined from 7.1% in FY17 to 3.9% in FY18.

INDOCO REMEDIES Income Statement 2017-18

INDOCO REMEDIES Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 4 billion as compared to Rs 4 billion in FY17, thereby witnessing an increase of 6.5%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY17, a fall of 6.8%.
• Current assets fell 6% and stood at Rs 5 billion, while fixed assets rose 18% and stood at Rs 6 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 12 billion as against Rs 12 billion during FY17, thereby witnessing a growth of 3%.

INDOCO REMEDIES Balance Sheet as on March 2018

INDOCO REMEDIES Cash Flow Statement Analysis

• INDOCO REMEDIES's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion, an improvement of 38.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -388 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -521 million from the Rs 497 million net cash flows seen during FY17.

INDOCO REMEDIES Cash Flow Statement 2017-18

Current Valuations for INDOCO REMEDIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.5, an decline from the EPS of Rs 8.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 187.6, stands at 286.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 15.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

Ratio Analysis for INDOCO REMEDIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY18, from 1.5x 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 3.1x during FY18, from 15.6x 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 6.1% during FY18, from 11.8% 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 9.0% during FY18, from 12.4% 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 5.2% during FY18, from 7.0% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

To see how INDOCO REMEDIES has performed over the last 5 years, please visit here.

INDOCO REMEDIES Share Price Performance

Over the last one year, INDOCO REMEDIES share price has moved up from Rs 210.8 to Rs 187.6, registering a loss of Rs 23.2 or around 11.0%.

(To know more, check out historical annual results for INDOCO REMEDIES and quarterly results for INDOCO REMEDIES)