KAJARIA CERAMICS 2017-18 Annual Report Analysis

Sat, 31 Mar

KAJARIA CERAMICS 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.

KAJARIA CERAMICS Income Statement Analysis

• Operating income during the year rose 17.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.3% in FY18 as against 22.1% in FY17.
• Depreciation charges increased by 8.8% and finance costs decreased by 29.1% YoY, respectively.
• Other income declined by 29.4% YoY.
• Net profit for the year declined by 9.9% YoY.
• Net profit margins during the year declined from 11.3% in FY17 to 8.7% in FY18.

KAJARIA CERAMICS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	22,448	26,387	17.5%
Other income	Rs m	154	108	-29.4%
Total Revenues	Rs m	22,601	26,495	17.2%
Gross profit	Rs m	4,963	4,571	-7.9%
Depreciation	Rs m	814	885	8.8%
Interest	Rs m	340	241	-29.1%
Profit before tax	Rs m	3,963	3,553	-10.3%
Tax	Rs m	1,425	1,267	-11.1%
Profit after tax	Rs m	2,538	2,286	-9.9%
Gross profit margin	%	22.1	17.3
Effective tax rate	%	36.0	35.7
Net profit margin	%	11.3	8.7

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

KAJARIA CERAMICS Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 5 billion as compared to Rs 6 billion in FY17, thereby witnessing an decrease of -1.4%.
• Long-term debt down at Rs 594 million as compared to Rs 1 billion during FY17, a fall of 48.6%.
• Current assets rose 16% and stood at Rs 10 billion, while fixed assets fell 3% and stood at Rs 12 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 21 billion as against Rs 20 billion during FY17, thereby witnessing a growth of 5%.

KAJARIA CERAMICS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	11,724	13,461	14.8
Current Liabilities	Rs m	5,540	5,461	-1.4
Long-term Debt	Rs m	1,155	594	-48.6
Total Liabilities	Rs m	20,401	21,403	4.9
Current assets	Rs m	8,221	9,514	15.7
Fixed Assets	Rs m	12,181	11,858	-2.6
Total Assets	Rs m	20,401	21,403	4.9

KAJARIA CERAMICS Cash Flow Statement Analysis

• KAJARIA CERAMICS's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -718 million, an improvement of 57% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 298 million from the Rs 301 million net cash flows seen during FY17.

KAJARIA CERAMICS 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	3,377	2,382	-29.5%
Cash Flow from Investing Activities	Rs m	-1,397	-1,368	-
Cash Flow from Financing Activities	Rs m	-1,679	-718	-
Net Cash Flow	Rs m	301	298	-0.8%

Current Valuations for KAJARIA CERAMICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.4, an decline from the EPS of Rs 16.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 567.1, stands at 37.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 3.4 times.
• The company's price to cash flow (P/CF) ratio stood at 33.1 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	141.2	166.0
TTM Earnings per share	Rs	16.0	14.4
Diluted earnings per share	Rs	15.9	14.4
Price to Cash Flow	x	27.8	33.1
TTM P/E ratio	x	36.8	37.8
Price / Book Value ratio	x	12.6	7.8
Market Cap	Rs m	147,987	105,114
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for KAJARIA CERAMICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY18, from 1.5x 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 15.7x during FY18, from 12.7x 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 17.0% during FY18, from 21.6% 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 27.0% during FY18, from 33.4% 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 11.8% during FY18, from 14.1% 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	1.5	1.7
Debtors’ Days	Days	6	6
Interest coverage	x	12.7	15.7
Debt to equity ratio	x	0.1	0.0
Return on assets	%	14.1	11.8
Return on equity	%	21.6	17.0
Return on capital employed	%	33.4	27.0

To see how KAJARIA CERAMICS has performed over the last 5 years, please visit here.

KAJARIA CERAMICS Share Price Performance

Over the last one year, KAJARIA CERAMICS share price has moved down from Rs 584.8 to Rs 567.1, registering a loss of Rs 17.8 or around 3.0%.

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

(To know more, check out historical annual results for KAJARIA CERAMICS and quarterly results for KAJARIA CERAMICS)

Read: Latest Annual Report Analysis of KAJARIA CERAMICS