KESORAM IND 2017-18 Annual Report Analysis

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KESORAM IND 2017-18 Annual Report Analysis
Tue, 1 Jan

KESORAM IND 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.

KESORAM IND Income Statement Analysis

  • Operating income during the year rose 0.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 1508.7% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1.9% in FY18 as against 0.1% in FY17.
  • Depreciation charges increased by 7.3% and finance costs increased by 56.3% YoY, respectively.
  • Other income grew by 154.5% YoY.
  • Net profit for the year grew by 138.6% YoY.
  • Net profit margins during the year declined from 6.2% in FY17 to 14.3% in FY18.

KESORAM IND Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 38,416 38,732 0.8%
Other income Rs m 627 1,595 154.5%
Total Revenues Rs m 39,043 40,327 3.3%
Gross profit Rs m -46 -740 1,508.7%
Depreciation Rs m 1,362 1,461 7.3%
Interest Rs m 2,835 4,430 56.3%
Profit before tax Rs m -3,616 -5,036 39.3%
Tax Rs m -79 -20 -74.6%
Profit after tax Rs m -2,421 -5,776 138.6%
Gross profit margin % -0.1 -1.9
Effective tax rate % 2.2 0.4
Net profit margin % -6.2 -14.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



KESORAM IND Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 26 billion as compared to Rs 21 billion in FY17, thereby witnessing an increase of 23.2%.
  • Long-term debt stood at Rs 27 billion as compared to Rs 21 billion during FY17, a growth of 28.2%.
  • Current assets rose 4% and stood at Rs 16 billion, while fixed assets rose 12% and stood at Rs 37 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 62 billion as against Rs 53 billion during FY17, thereby witnessing a growth of 16%.

KESORAM IND Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 7,977 5,274 -33.9
 
Current Liabilities Rs m 21,381 26,334 23.2
Long-term Debt Rs m 21,372 27,389 28.2
Total Liabilities Rs m 53,331 61,683 15.7
 
Current assets Rs m 15,264 15,916 4.3
Fixed Assets Rs m 32,729 36,794 12.4
Total Assets Rs m 53,331 61,683 15.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



KESORAM IND Cash Flow Statement Analysis

  • KESORAM IND's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 123.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 7 billion, an improvement of 131% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -2 billion from the Rs -2 billion net cash flows seen during FY17.

KESORAM IND 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 791 1,769 123.7%
Cash Flow from Investing Activities Rs m 17,921 -9,919 -
Cash Flow from Financing Activities Rs m -21,170 6,621 -
Net Cash Flow Rs m -2,458 -1,787 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for KESORAM IND

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -42.1, an decline from the EPS of Rs -20.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 86.9, stands at -2.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at -2.2 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 327.6 282.0
TTM Earnings per share Rs -20.6 -42.1
Diluted earnings per share Rs -22.1 -52.6
Price to Cash Flow x -9.6 -2.2
TTM P/E ratio x -2.8 -2.6
Price / Book Value ratio x 2.2 3.6
Market Cap Rs m 10,185 9,534
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 KESORAM IND

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.6x during FY18, from 0.7x 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 -0.1x during FY18, from -0.3x 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 -109.5% during FY18, from -30.4% 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 -4.2% during FY18, from 1.1% 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 declined and down at -2.2% during FY18, from 0.8% 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 0.7 0.6
Debtors’ Days Days 50 54
Interest coverage x -0.3 -0.1
Debt to equity ratio x 2.7 5.2
Return on assets % 0.8 -2.2
Return on equity % -30.4 -109.5
Return on capital employed % 1.1 -4.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how KESORAM IND has performed over the last 5 years, please visit here.

KESORAM IND Share Price Performance

Over the last one year, KESORAM IND share price has moved up from Rs 138.1 to Rs 86.9, registering a loss of Rs 51.2 or around 37.1%.

Overall, the S&P BSE SENSEX is up 6.4% over the year.

(To know more, check out historical annual results for KESORAM IND and quarterly results for KESORAM IND)

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Related Views on News

KESORAM IND Announces Quarterly Results (1QFY20); Net Profit Up 111.3% (Quarterly Result Update)

Aug 13, 2019 | Updated on Aug 13, 2019

For the quarter ended June 2019, KESORAM IND has posted a net profit of Rs 72 m (up 111.3% YoY). Sales on the other hand came in at Rs 9 bn (down 0.4% YoY). Read on for a complete analysis of KESORAM IND's quarterly results.

KESORAM IND Announces Quarterly Results (4QFY19); Net Profit Up 113.1% (Quarterly Result Update)

May 17, 2019 | Updated on May 17, 2019

For the quarter ended March 2019, KESORAM IND has posted a net profit of Rs 208 m (up 113.1% YoY). Sales on the other hand came in at Rs 10 bn (up 5.2% YoY). Read on for a complete analysis of KESORAM IND's quarterly results.

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