KAVERI SEED 2017-18 Annual Report Analysis

Sat, 31 Mar

KAVERI SEED 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.

KAVERI SEED Income Statement Analysis

• Operating income during the year rose 16.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 175.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.0% in FY18 as against 11.4% in FY17.
• Depreciation charges decreased by 17.1% and finance costs increased by 150.6% YoY, respectively.
• Other income declined by 30.0% YoY.
• Net profit for the year grew by 173.5% YoY.
• Net profit margins during the year grew from 11.0% in FY17 to 25.8% in FY18.

KAVERI SEED Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	7,036	8,191	16.4%
Other income	Rs m	344	241	-30.0%
Total Revenues	Rs m	7,380	8,432	14.2%
Gross profit	Rs m	803	2,214	175.7%
Depreciation	Rs m	302	251	-17.1%
Interest	Rs m	2	6	150.6%
Profit before tax	Rs m	843	2,198	160.9%
Tax	Rs m	70	84	20.5%
Profit after tax	Rs m	773	2,114	173.5%
Gross profit margin	%	11.4	27.0
Effective tax rate	%	8.3	3.8
Net profit margin	%	11.0	25.8

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KAVERI SEED Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 4 billion as compared to Rs 5 billion in FY17, thereby witnessing an decrease of -16.2%.
• Long-term debt down at Rs 29 million as compared to Rs 46 million during FY17, a fall of 38.0%.
• Current assets fell 7% and stood at Rs 12 billion, while fixed assets rose 11% and stood at Rs 3 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 15 billion as against Rs 15 billion during FY17, thereby witnessing a fall of 4%.

KAVERI SEED Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	10,143	10,124	-0.2
Current Liabilities	Rs m	5,009	4,199	-16.2
Long-term Debt	Rs m	46	29	-38.0
Total Liabilities	Rs m	15,269	14,648	-4.1
Current assets	Rs m	12,837	11,956	-6.9
Fixed Assets	Rs m	2,433	2,691	10.6
Total Assets	Rs m	15,269	14,648	-4.1

KAVERI SEED Cash Flow Statement Analysis

• KAVERI SEED's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 708 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -71 million from the Rs 115 million net cash flows seen during FY17.

KAVERI SEED 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	1,590	1,483	-6.7%
Cash Flow from Investing Activities	Rs m	-1,503	708	-
Cash Flow from Financing Activities	Rs m	28	-2,262	-
Net Cash Flow	Rs m	115	-71	-

Current Valuations for KAVERI SEED

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.0, an improvement from the EPS of Rs 11.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 484.9, stands at 13.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 15.9 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	101.9	123.9
TTM Earnings per share	Rs	11.2	32.0
Diluted earnings per share	Rs	13.3	36.2
Price to Cash Flow	x	30.0	15.9
TTM P/E ratio	x	23.4	13.4
Price / Book Value ratio	x	3.0	3.7
Market Cap	Rs m	30,842	37,709
Dividends per share (Unadj.)	Rs	0.0	3.0

Ratio Analysis for KAVERI SEED

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY18, from 2.6x 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 364.9x during FY18, from 350.6x 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 20.9% during FY18, from 7.6% 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 improved and stood at 21.7% during FY18, from 8.3% 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 14.5% during FY18, from 5.1% 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	2.6	2.8
Debtors’ Days	Days	443	383
Interest coverage	x	350.6	364.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.1	14.5
Return on equity	%	7.6	20.9
Return on capital employed	%	8.3	21.7

To see how KAVERI SEED has performed over the last 5 years, please visit here.

KAVERI SEED Share Price Performance

Over the last one year, KAVERI SEED share price has moved down from Rs 552.4 to Rs 484.9, registering a loss of Rs 67.5 or around 12.2%.

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

(To know more, check out historical annual results for KAVERI SEED and quarterly results for KAVERI SEED)

Read: Latest Annual Report Analysis of KAVERI SEED