KSB PUMPS 2017-18 Annual Report Analysis

Mon, 22 Apr

KSB PUMPS has announced its results for the year ended December 2018. Let us have a look at the detailed performance review of the company during FY17-18.

KSB PUMPS Income Statement Analysis

• Operating income during the year rose 15.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.7% in CY18 as against 11.4% in CY17.
• Depreciation charges increased by 28.5% and finance costs increased by 5.6% YoY, respectively.
• Other income declined by 32.5% YoY.
• Net profit for the year grew by 1.0% YoY.
• Net profit margins during the year declined from 7.3% in CY17 to 6.4% in CY18.

KSB PUMPS Income Statement 2017-18

KSB PUMPS Balance Sheet Analysis

• The company's current liabilities during CY18 stood at Rs 5 billion as compared to Rs 3 billion in CY17, thereby witnessing an increase of 38.3%.
• Current assets rose 27% and stood at Rs 8 billion, while fixed assets rose 4% and stood at Rs 3 billion in CY18.
• Overall, the total assets and liabilities for CY18 stood at Rs 13 billion as against Rs 11 billion during CY17, thereby witnessing a growth of 16%.

KSB PUMPS Balance Sheet as on December 2018

KSB PUMPS Cash Flow Statement Analysis

• KSB PUMPS's cash flow from operating activities (CFO) during CY18 stood at Rs 775 million on a YoY basis.
• Cash flow from investing activities (CFI) during CY18 stood at Rs -855 million on a YoY basis.
• Cash flow from financial activities (CFF) during CY18 stood at Rs 17 million, an improvement of 108% on a YoY basis.
• Overall, net cash flows for the company during CY18 stood at Rs -63 million from the Rs -74 million net cash flows seen during CY17.

KSB PUMPS Cash Flow Statement 2017-18

Current Valuations for KSB PUMPS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.6, an improvement from the EPS of Rs 20.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 690.0, stands at 32.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 22.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

Ratio Analysis for KSB PUMPS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during CY18, from 1.9x during CY17. 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 29.0x during CY18, from 29.9x during CY17. 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 9.5% during CY18, from 10.0% during CY18. 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 14.9% during CY18, from 15.7% during CY17. 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 6.0% during CY18, from 6.9% during CY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

To see how KSB PUMPS has performed over the last 5 years, please visit here.

KSB PUMPS Share Price Performance

Over the last one year, KSB PUMPS share price has moved up from Rs 857.6 to Rs 690.0, registering a loss of Rs 167.6 or around 19.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,257.1 (down 0.5%). Over the last one year it has moved down from 19,191.1 to 18,257.1, a loss of 934 points (down 4.9%).

Overall, the S&P BSE SENSEX is up 13.0% over the year.

(To know more, check out historical annual results for KSB PUMPS and quarterly results for KSB PUMPS)