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LOVABLE LINGERIE 2017-18 Annual Report Analysis

Sat, 31 Mar

LOVABLE LINGERIE 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.

LOVABLE LINGERIE Income Statement Analysis

• Operating income during the year fell 10.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 132.0% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 2.8% in FY18 as against 7.7% in FY17.
• Depreciation charges increased by 0.9% and finance costs increased by 8.7% YoY, respectively.
• Other income declined by 37.2% YoY.
• Net profit for the year declined by 118.5% YoY.
• Net profit margins during the year declined from 6.5% in FY17 to 1.4% in FY18.

LOVABLE LINGERIE Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	1,974	1,759	-10.9%
Other income	Rs m	69	43	-37.2%
Total Revenues	Rs m	2,043	1,802	-11.8%
Gross profit	Rs m	152	-49	-132.0%
Depreciation	Rs m	34	34	0.9%
Interest	Rs m	9	10	8.7%
Profit before tax	Rs m	178	-50	-127.9%
Tax	Rs m	50	-26	-152.0%
Profit after tax	Rs m	129	-24	-118.5%
Gross profit margin	%	7.7	-2.8
Effective tax rate	%	27.9	52.0
Net profit margin	%	6.5	-1.4

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LOVABLE LINGERIE Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 168 million as compared to Rs 323 million in FY17, thereby witnessing an decrease of -47.9%.
• Current assets fell 13% and stood at Rs 1 billion, while fixed assets fell 40% and stood at Rs 870 million in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 2 billion as against Rs 3 billion during FY17, thereby witnessing a fall of 28%.

LOVABLE LINGERIE Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	2,222	1,653	-25.6
Current Liabilities	Rs m	323	168	-47.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,631	1,906	-27.5
Current assets	Rs m	1,188	1,036	-12.8
Fixed Assets	Rs m	1,443	870	-39.7
Total Assets	Rs m	2,631	1,906	-27.5

LOVABLE LINGERIE Cash Flow Statement Analysis

• LOVABLE LINGERIE's cash flow from operating activities (CFO) during FY18 stood at Rs -15 million, an improvement of 51.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 715 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -662 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 39 million from the Rs -26 million net cash flows seen during FY17.

LOVABLE LINGERIE 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	-10	-15	-
Cash Flow from Investing Activities	Rs m	-107	715	-
Cash Flow from Financing Activities	Rs m	91	-662	-
Net Cash Flow	Rs m	-26	39	-

Current Valuations for LOVABLE LINGERIE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.6, an decline from the EPS of Rs 7.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 175.4, stands at -99.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 324.3 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	117.5	118.9
TTM Earnings per share	Rs	7.6	-1.6
Diluted earnings per share	Rs	8.7	-1.6
Price to Cash Flow	x	22.4	324.3
TTM P/E ratio	x	24.3	-99.9
Price / Book Value ratio	x	2.0	2.0
Market Cap	Rs m	4,388	3,387
Dividends per share (Unadj.)	Rs	1.0	0.0

Ratio Analysis for LOVABLE LINGERIE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.2x during FY18, from 3.7x 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 -4.0x during FY18, from 20.3x 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 -1.4% during FY18, from 5.8% 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 -2.4% during FY18, from 8.4% 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 -0.7% during FY18, from 5.2% 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	3.7	6.2
Debtors’ Days	Days	72,620,640	97,503,650
Interest coverage	x	20.3	-4.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.2	-0.7
Return on equity	%	5.8	-1.4
Return on capital employed	%	8.4	-2.4

To see how LOVABLE LINGERIE has performed over the last 5 years, please visit here.

LOVABLE LINGERIE Share Price Performance

Over the last one year, LOVABLE LINGERIE share price has moved down from Rs 245.5 to Rs 175.4, registering a loss of Rs 70.1 or around 28.6%.

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

(To know more, check out historical annual results for LOVABLE LINGERIE and quarterly results for LOVABLE LINGERIE)

Read: Latest Annual Report Analysis of LOVABLE LINGERIE