INDO TECH TRANS. 2017-18 Annual Report Analysis

Sat, 31 Mar

INDO TECH TRANS. 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 TECH TRANS. Income Statement Analysis

• Operating income during the year rose 60.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 59.3% YoY during the fiscal. Operating profit margins witnessed a growth and down at 0.6% in FY18 as against 2.2% in FY17.
• Depreciation charges decreased by 1.6% and finance costs decreased by 25.9% YoY, respectively.
• Other income grew by 151.4% YoY.
• Net profit for the year declined by 67.2% YoY.
• Net profit margins during the year grew from 8.4% in FY17 to 1.7% in FY18.

INDO TECH TRANS. Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	1,335	2,147	60.9%
Other income	Rs m	18	46	151.4%
Total Revenues	Rs m	1,353	2,193	62.1%
Gross profit	Rs m	-30	-12	-59.3%
Depreciation	Rs m	48	47	-1.6%
Interest	Rs m	31	23	-25.9%
Profit before tax	Rs m	-91	-37	-59.3%
Tax	Rs m	22	0	-100.0%
Profit after tax	Rs m	-113	-37	-67.2%
Gross profit margin	%	-2.2	-0.6
Effective tax rate	%	-24.3	0.0
Net profit margin	%	-8.4	-1.7

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INDO TECH TRANS. Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 732 million as compared to Rs 614 million in FY17, thereby witnessing an increase of 19.4%.
• Current assets rose 10% and stood at Rs 2 billion, while fixed assets fell 8% and stood at Rs 571 million in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 2 billion as against Rs 2 billion during FY17, thereby witnessing a growth of 4%.

INDO TECH TRANS. Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	1,382	1,341	-3.0
Current Liabilities	Rs m	614	732	19.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,005	2,087	4.1
Current assets	Rs m	1,382	1,515	9.7
Fixed Assets	Rs m	623	571	-8.3
Total Assets	Rs m	2,005	2,087	4.1

INDO TECH TRANS. Cash Flow Statement Analysis

• INDO TECH TRANS.'s cash flow from operating activities (CFO) during FY18 stood at Rs 36 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -8 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -5 million, an improvement of 60% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 24 million from the Rs -141 million net cash flows seen during FY17.

INDO TECH TRANS. 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	-118	36	-
Cash Flow from Investing Activities	Rs m	-11	-8	-
Cash Flow from Financing Activities	Rs m	-12	-5	-
Net Cash Flow	Rs m	-141	24	-

Current Valuations for INDO TECH TRANS.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.5, an improvement from the EPS of Rs -10.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 171.5, stands at -49.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 214.9 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	125.7	202.2
TTM Earnings per share	Rs	-10.6	-3.5
Diluted earnings per share	Rs	-10.6	-3.5
Price to Cash Flow	x	-34.1	214.9
TTM P/E ratio	x	-13.6	-49.1
Price / Book Value ratio	x	1.8	1.7
Market Cap	Rs m	2,527	2,246
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INDO TECH TRANS.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY18, from 2.3x 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 -0.6x during FY18, from -1.9x 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 improved and stood at -2.8% during FY18, from -8.2% 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 -1.0% during FY18, from -4.3% 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 -0.7% during FY18, from -4.1% 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	2.3	2.1
Debtors’ Days	Days	1,624	1,351
Interest coverage	x	-1.9	-0.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-4.1	-0.7
Return on equity	%	-8.2	-2.8
Return on capital employed	%	-4.3	-1.0

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

INDO TECH TRANS. Share Price Performance

Over the last one year, INDO TECH TRANS. share price has moved down from Rs 207.6 to Rs 171.5, registering a loss of Rs 36.1 or around 17.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

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

(To know more, check out historical annual results for INDO TECH TRANS. and quarterly results for INDO TECH TRANS.)