KESORAM IND 2017-18 Annual Report Analysis

Sat, 31 Mar

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 11.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 240.0% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 4.0% in FY18 as against 3.2% 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 7.2% in FY17 to 15.4% in FY18.

KESORAM IND Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	33,575	37,505	11.7%
Other income	Rs m	627	1,595	154.5%
Total Revenues	Rs m	34,201	39,100	14.3%
Gross profit	Rs m	1,071	-1,499	-240.0%
Depreciation	Rs m	1,362	1,461	7.3%
Interest	Rs m	2,835	4,431	56.3%
Profit before tax	Rs m	-2,500	-5,796	131.9%
Tax	Rs m	-79	-20	-74.6%
Profit after tax	Rs m	-2,421	-5,776	138.6%
Gross profit margin	%	3.2	-4.0
Effective tax rate	%	3.1	0.3
Net profit margin	%	-7.2	-15.4

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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 20.0%.
• Long-term debt stood at Rs 27 billion as compared to Rs 21 billion during FY17, a growth of 28.2%.
• Current assets rose 1% and stood at Rs 15 billion, while fixed assets rose 20% and stood at Rs 46 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 61 billion as against Rs 53 billion during FY17, thereby witnessing a growth of 15%.

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	4,448	-44.2
Current Liabilities	Rs m	21,381	25,648	20.0
Long-term Debt	Rs m	21,372	27,389	28.2
Total Liabilities	Rs m	53,331	61,170	14.7
Current assets	Rs m	15,264	15,440	1.2
Fixed Assets	Rs m	38,067	45,730	20.1
Total Assets	Rs m	53,331	61,170	14.7

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 -3 billion from the Rs -3 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	-3,435	-2,979	-

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 108.9, stands at -5.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at -4.4 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	286.3	273.1
TTM Earnings per share	Rs	-20.6	-42.1
Diluted earnings per share	Rs	-9.9	-23.6
Price to Cash Flow	x	-33.1	-4.4
TTM P/E ratio	x	-28.3	-5.7
Price / Book Value ratio	x	2.2	4.3
Market Cap	Rs m	17,807	19,114
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KESORAM IND

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated 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 -0.3x during FY18, from 0.1x 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 -129.9% 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 -4.3% 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	6	6
Interest coverage	x	0.1	-0.3
Debt to equity ratio	x	2.7	6.2
Return on assets	%	0.8	-2.2
Return on equity	%	-30.4	-129.9
Return on capital employed	%	1.1	-4.3

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 down from Rs 143.3 to Rs 108.9, registering a loss of Rs 34.5 or around 24.0%.

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

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

Read: Latest Annual Report Analysis of KESORAM IND