INDO RAMA SYN 2017-18 Annual Report Analysis

Sat, 31 Mar

INDO RAMA SYN 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.

INDO RAMA SYN Income Statement Analysis

• Operating income during the year fell 1.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 121.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 0.8% in FY18 as against 3.7% in FY17.
• Depreciation charges increased by 2.2% and finance costs increased by 1.2% YoY, respectively.
• Other income declined by 71.3% YoY.
• Net profit for the year grew by 1.5% YoY.
• Net profit margins during the year declined from 3.6% in FY17 to 3.8% in FY18.

INDO RAMA SYN Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	22,378	21,976	-1.8%
Other income	Rs m	1,215	349	-71.3%
Total Revenues	Rs m	23,593	22,325	-5.4%
Gross profit	Rs m	-830	178	-121.5%
Depreciation	Rs m	814	832	2.2%
Interest	Rs m	932	944	1.2%
Profit before tax	Rs m	-1,360	-1,249	-8.2%
Tax	Rs m	-546	-422	-22.8%
Profit after tax	Rs m	-814	-827	1.5%
Gross profit margin	%	-3.7	0.8
Effective tax rate	%	40.1	33.8
Net profit margin	%	-3.6	-3.8

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INDO RAMA SYN Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 10 billion as compared to Rs 10 billion in FY17, thereby witnessing an increase of 1.5%.
• Long-term debt down at Rs 368 million as compared to Rs 809 million during FY17, a fall of 54.6%.
• Current assets fell 15% and stood at Rs 5 billion, while fixed assets fell 6% and stood at Rs 10 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 15 billion as against Rs 17 billion during FY17, thereby witnessing a fall of 9%.

INDO RAMA SYN Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	5,017	4,197	-16.3
Current Liabilities	Rs m	10,043	10,197	1.5
Long-term Debt	Rs m	809	368	-54.6
Total Liabilities	Rs m	16,601	15,078	-9.2
Current assets	Rs m	6,113	5,211	-14.8
Fixed Assets	Rs m	10,488	9,867	-5.9
Total Assets	Rs m	16,601	15,078	-9.2

INDO RAMA SYN Cash Flow Statement Analysis

• INDO RAMA SYN's cash flow from operating activities (CFO) during FY18 stood at Rs 281 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -58 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -145 million, an improvement of 84% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 77 million from the Rs -8 million net cash flows seen during FY17.

INDO RAMA SYN 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	392	281	-28.4%
Cash Flow from Investing Activities	Rs m	526	-58	-
Cash Flow from Financing Activities	Rs m	-926	-145	-
Net Cash Flow	Rs m	-8	77	-

Current Valuations for INDO RAMA SYN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.4, an decline from the EPS of Rs -5.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 29.3, stands at -9.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 1,245.8 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	147.4	144.7
TTM Earnings per share	Rs	-5.4	-5.4
Diluted earnings per share	Rs	-3.1	-3.2
Price to Cash Flow	x	-21,286.0	1,245.8
TTM P/E ratio	x	-10.1	-9.2
Price / Book Value ratio	x	1.1	1.5
Market Cap	Rs m	5,268	6,354
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INDO RAMA SYN

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY18, from 0.6x 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 -0.3x during FY18, from -0.5x 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 -19.7% during FY18, from -16.2% 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 improved and stood at -6.7% during FY18, from -7.3% 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 improved and stood at 0.8% during FY18, from 0.7% 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	0.6	0.5
Debtors’ Days	Days	2	2
Interest coverage	x	-0.5	-0.3
Debt to equity ratio	x	0.2	0.1
Return on assets	%	0.7	0.8
Return on equity	%	-16.2	-19.7
Return on capital employed	%	-7.3	-6.7

To see how INDO RAMA SYN has performed over the last 5 years, please visit here.

INDO RAMA SYN Share Price Performance

Over the last one year, INDO RAMA SYN share price has moved down from Rs 32.6 to Rs 29.3, registering a loss of Rs 3.4 or around 10.3%.

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

(To know more, check out historical annual results for INDO RAMA SYN and quarterly results for INDO RAMA SYN)

Read: Latest Annual Report Analysis of INDO RAMA SYN