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ISMT LTD 2017-18 Annual Report Analysis

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ISMT LTD 2017-18 Annual Report Analysis
Thu, 14 Mar

ISMT LTD 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.

ISMT LTD Income Statement Analysis

  • Operating income during the year rose 30.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 82.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.4% in FY18 as against 3.9% in FY17.
  • Depreciation charges decreased by 7.3% and finance costs increased by 2.1% YoY, respectively.
  • Other income grew by 13.1% YoY.
  • Net profit for the year declined by 13.8% YoY.
  • Net profit margins during the year grew from 23.7% in FY17 to 15.7% in FY18.

ISMT LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 11,781 15,322 30.1%
Other income Rs m 93 105 13.1%
Total Revenues Rs m 11,874 15,428 29.9%
Gross profit Rs m 456 831 82.1%
Depreciation Rs m 663 614 -7.3%
Interest Rs m 2,704 2,760 2.1%
Profit before tax Rs m -2,817 -2,438 -13.5%
Tax Rs m 0 -10 -10,000.0%
Profit after tax Rs m -2,818 -2,428 -13.8%
Gross profit margin % 3.9 5.4
Effective tax rate % 0.0 0.4
Net profit margin % -23.7 -15.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ISMT LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 27 billion as compared to Rs 22 billion in FY17, thereby witnessing an increase of 20.8%.
  • Long-term debt down at Rs 4 billion as compared to Rs 6 billion during FY17, a fall of 35.9%.
  • Current assets rose 5% and stood at Rs 7 billion, while fixed assets fell 5% and stood at Rs 12 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 24 billion as against Rs 24 billion during FY17, thereby witnessing a fall of 0%.

ISMT LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m -4,047 -6,460 59.6
 
Current Liabilities Rs m 22,009 26,593 20.8
Long-term Debt Rs m 6,282 4,029 -35.9
Total Liabilities Rs m 24,431 24,309 -0.5
 
Current assets Rs m 7,057 7,442 5.5
Fixed Assets Rs m 12,864 12,265 -4.7
Total Assets Rs m 24,431 24,309 -0.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ISMT LTD Cash Flow Statement Analysis

  • ISMT LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 201 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -11 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -240 million, an improvement of 47% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -50 million from the Rs -1 billion net cash flows seen during FY17.

ISMT LTD 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 -712 201 -
Cash Flow from Investing Activities Rs m -73 -11 -
Cash Flow from Financing Activities Rs m -456 -240 -
Net Cash Flow Rs m -1,242 -50 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ISMT LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -16.6, an improvement from the EPS of Rs -19.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 7.1, stands at -0.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -0.3 times, while the price to sales ratio stands at 0.1 times.
  • The company's price to cash flow (P/CF) ratio stood at -0.6 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 80.4 104.6
TTM Earnings per share Rs -19.2 -16.6
Diluted earnings per share Rs -19.2 -16.6
Price to Cash Flow x -0.5 -0.6
TTM P/E ratio x -0.5 -0.5
Price / Book Value ratio x -0.4 -0.3
Market Cap Rs m 1,033 1,033
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 ISMT LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY18, from 0.3x 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 improved and stood at 0.1x during FY18, from 0.0x 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 37.6% during FY18, from 69.6% 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 -13.2% during FY18, from -5.1% 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 improved and stood at 1.4% during FY18, from -0.5% 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 0.3 0.3
Debtors’ Days Days 61 54
Interest coverage x 0.0 0.1
Debt to equity ratio x -1.6 -0.6
Return on assets % -0.5 1.4
Return on equity % 69.6 37.6
Return on capital employed % -5.1 -13.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how ISMT LTD has performed over the last 5 years, please visit here.

ISMT LTD Share Price Performance

Over the last one year, ISMT LTD share price has moved up from Rs 11.4 to Rs 7.1, registering a loss of Rs 4.3 or around 38.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 11,223.7 (up 0.7%). Over the last one year it has moved down from 14,323.3 to 11,223.7, a loss of 3,100 points (down 21.6%).

Overall, the S&P BSE SENSEX is up 11.6% over the year.

(To know more, check out historical annual results for ISMT LTD and quarterly results for ISMT LTD)

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Related Views on News

ISMT LTD Announces Quarterly Results (4QFY18); Net Profit Down 16.4% (Quarterly Result Update)

Jun 13, 2018 | Updated on Jun 13, 2018

For the quarter ended March 2018, ISMT LTD has posted a net profit of Rs 550 m (down 16.4% YoY). Sales on the other hand came in at Rs 5 bn (up 81.5% YoY). Read on for a complete analysis of ISMT LTD's quarterly results.

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