SUNTECK REALTY 2017-18 Annual Report Analysis

Sat, 31 Mar

SUNTECK REALTY 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.

SUNTECK REALTY Income Statement Analysis

• Operating income during the year fell 6.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 48.1% in FY18 as against 42.2% in FY17.
• Depreciation charges decreased by 25.8% and finance costs decreased by 2.2% YoY, respectively.
• Other income grew by 11.3% YoY.
• Net profit for the year grew by 3.8% YoY.
• Net profit margins during the year grew from 23.2% in FY17 to 25.9% in FY18.

SUNTECK REALTY Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	9,522	8,883	-6.7%
Other income	Rs m	82	91	11.3%
Total Revenues	Rs m	9,604	8,974	-6.6%
Gross profit	Rs m	4,022	4,276	6.3%
Depreciation	Rs m	23	17	-25.8%
Interest	Rs m	997	975	-2.2%
Profit before tax	Rs m	3,084	3,375	9.4%
Tax	Rs m	872	1,078	23.7%
Profit after tax	Rs m	2,212	2,297	3.8%
Gross profit margin	%	42.2	48.1
Effective tax rate	%	28.3	32.0
Net profit margin	%	23.2	25.9

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SUNTECK REALTY Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 12 billion as compared to Rs 18 billion in FY17, thereby witnessing an decrease of -30.4%.
• Long-term debt stood at Rs 513 million as compared to Rs 296 million during FY17, a growth of 73.4%.
• Current assets rose 13% and stood at Rs 37 billion, while fixed assets fell 8% and stood at Rs 4 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 40 billion as against Rs 37 billion during FY17, thereby witnessing a growth of 11%.

SUNTECK REALTY Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	17,930	26,290	46.6
Current Liabilities	Rs m	17,807	12,391	-30.4
Long-term Debt	Rs m	296	513	73.4
Total Liabilities	Rs m	36,553	40,409	10.5
Current assets	Rs m	32,695	36,862	12.7
Fixed Assets	Rs m	3,858	3,546	-8.1
Total Assets	Rs m	36,553	40,409	10.5

SUNTECK REALTY Cash Flow Statement Analysis

• SUNTECK REALTY's cash flow from operating activities (CFO) during FY18 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 180 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 1 billion, an improvement of 142% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -105 million from the Rs -61 million net cash flows seen during FY17.

SUNTECK REALTY 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	2,427	-1,685	-
Cash Flow from Investing Activities	Rs m	882	180	-79.7%
Cash Flow from Financing Activities	Rs m	-3,371	1,401	-
Net Cash Flow	Rs m	-61	-105	-

Current Valuations for SUNTECK REALTY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.4, an decline from the EPS of Rs 36.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 423.5, stands at 27.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 6.7 times.
• The company's price to cash flow (P/CF) ratio stood at 22.7 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	158.8	63.3
TTM Earnings per share	Rs	36.9	16.4
Diluted earnings per share	Rs	15.1	15.7
Price to Cash Flow	x	25.0	22.7
TTM P/E ratio	x	27.7	27.1
Price / Book Value ratio	x	0.9	2.0
Market Cap	Rs m	16,966	52,408
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for SUNTECK REALTY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY18, from 1.8x 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 improved and stood at 4.5x during FY18, from 4.1x 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 8.7% during FY18, from 12.3% 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 16.2% during FY18, from 22.4% 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 8.1% during FY18, from 8.8% 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	1.8	3.0
Debtors’ Days	Days	621	1,194
Interest coverage	x	4.1	4.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.8	8.1
Return on equity	%	12.3	8.7
Return on capital employed	%	22.4	16.2

To see how SUNTECK REALTY has performed over the last 5 years, please visit here.

SUNTECK REALTY Share Price Performance

Over the last one year, SUNTECK REALTY share price has moved up from Rs 380.8 to Rs 423.5, registering a gain of Rs 42.7 or around 11.2%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,229.9 (down 1.1%). Over the last one year it has moved up from 1,600.0 to 2,229.9, a gain of 630 points (up 39.4%).

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

(To know more, check out historical annual results for SUNTECK REALTY and quarterly results for SUNTECK REALTY)

Read: Latest Annual Report Analysis of SUNTECK REALTY