KAVERI SEED 2017-18 Annual Report Analysis

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KAVERI SEED 2017-18 Annual Report Analysis
Wed, 19 Dec

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 16.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 176.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.1% in FY18 as against 11.4% in FY17.
  • Depreciation charges decreased by 17.1% and finance costs increased by 150.0% YoY, respectively.
  • Other income declined by 31.2% YoY.
  • Net profit for the year grew by 173.5% YoY.
  • Net profit margins during the year grew from 10.5% in FY17 to 25.1% in FY18.

KAVERI SEED Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 7,050 8,192 16.2%
Other income Rs m 344 237 -31.2%
Total Revenues Rs m 7,394 8,429 14.0%
Gross profit Rs m 803 2,218 176.2%
Depreciation Rs m 302 251 -17.1%
Interest Rs m 2 6 150.0%
Profit before tax Rs m 843 2,198 160.9%
Tax Rs m 70 84 20.7%
Profit after tax Rs m 773 2,114 173.5%
Gross profit margin % 11.4 27.1
Effective tax rate % 8.3 3.8
Net profit margin % 10.5 25.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 37.9%.
  • Current assets fell 8% and stood at Rs 12 billion, while fixed assets fell 4% and stood at Rs 2 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 14 billion as against Rs 15 billion during FY17, thereby witnessing a fall of 5%.

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 -37.9
Total Liabilities Rs m 15,278 14,487 -5.2
 
Current assets Rs m 12,837 11,824 -7.9
Fixed Assets Rs m 2,322 2,234 -3.8
Total Assets Rs m 15,278 14,487 -5.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



KAVERI SEED Cash Flow Statement Analysis

  • KAVERI SEED'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 683 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 2,182 1,508 -30.9%
Cash Flow from Investing Activities Rs m -1,503 683 -
Cash Flow from Financing Activities Rs m 28 -2,262 -
Net Cash Flow Rs m 115 -71 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 590.9, stands at 19.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 4.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 17.2 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 102.1 124.0
TTM Earnings per share Rs 11.2 32.0
Diluted earnings per share Rs 11.2 30.7
Price to Cash Flow x 37.9 17.2
TTM P/E ratio x 19.5 19.4
Price / Book Value ratio x 3.1 3.8
Market Cap Rs m 40,804 40,710
Dividends per share (Unadj.) Rs 0.0 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 deteriorated and stood at 367.4x during FY18, from 352.0x 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 14.6% 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 44 38
Interest coverage x 352.0 367.4
Debt to equity ratio x 0.0 0.0
Return on assets % 5.1 14.6
Return on equity % 7.6 20.9
Return on capital employed % 8.3 21.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 up from Rs 553.7 to Rs 590.9, registering a gain of Rs 37.2 or around 6.7%.

Overall, the S&P BSE SENSEX is up 8.7% over the year.

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

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Related Views on News

KAVERI SEED Announces Quarterly Results (1QFY20); Net Profit Up 9.3% (Quarterly Result Update)

Aug 14, 2019 | Updated on Aug 14, 2019

For the quarter ended June 2019, KAVERI SEED has posted a net profit of Rs 2 bn (up 9.3% YoY). Sales on the other hand came in at Rs 6 bn (up 7.9% YoY). Read on for a complete analysis of KAVERI SEED's quarterly results.

KAVERI SEED Announces Quarterly Results (4QFY19); Net Profit Up 37.7% (Quarterly Result Update)

May 28, 2019 | Updated on May 28, 2019

For the quarter ended March 2019, KAVERI SEED has posted a net profit of Rs 114 m (up 37.7% YoY). Sales on the other hand came in at Rs 447 m (up 7.5% YoY). Read on for a complete analysis of KAVERI SEED's quarterly results.

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