MAHARASHTRA SEAMLESS 2017-18 Annual Report Analysis

Sat, 31 Mar

MAHARASHTRA SEAMLESS 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.

MAHARASHTRA SEAMLESS Income Statement Analysis

• Operating income during the year rose 63.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 38.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.7% in FY18 as against 17.4% in FY17.
• Depreciation charges increased by 7.4% and finance costs increased by 23.0% YoY, respectively.
• Other income declined by 14.8% YoY.
• Net profit for the year grew by 43.5% YoY.
• Net profit margins during the year declined from 9.0% in FY17 to 7.8% in FY18.

MAHARASHTRA SEAMLESS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	12,925	21,184	63.9%
Other income	Rs m	763	650	-14.8%
Total Revenues	Rs m	13,689	21,835	59.5%
Gross profit	Rs m	2,249	3,110	38.3%
Depreciation	Rs m	710	762	7.4%
Interest	Rs m	339	417	23.0%
Profit before tax	Rs m	1,963	2,581	31.5%
Tax	Rs m	805	919	14.2%
Profit after tax	Rs m	1,158	1,662	43.5%
Gross profit margin	%	17.4	14.7
Effective tax rate	%	41.0	35.6
Net profit margin	%	9.0	7.8

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MAHARASHTRA SEAMLESS Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 4 billion as compared to Rs 7 billion in FY17, thereby witnessing an decrease of -47.3%.
• Long-term debt stood at Rs 5 billion as compared to Rs 2 billion during FY17, a growth of 162.7%.
• Current assets rose 2% and stood at Rs 15 billion, while fixed assets rose 6% and stood at Rs 26 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 40 billion as against Rs 39 billion during FY17, thereby witnessing a growth of 5%.

MAHARASHTRA SEAMLESS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	27,464	29,300	6.7
Current Liabilities	Rs m	6,678	3,519	-47.3
Long-term Debt	Rs m	1,798	4,723	162.7
Total Liabilities	Rs m	38,562	40,456	4.9
Current assets	Rs m	14,372	14,719	2.4
Fixed Assets	Rs m	24,190	25,737	6.4
Total Assets	Rs m	38,562	40,456	4.9

MAHARASHTRA SEAMLESS Cash Flow Statement Analysis

• MAHARASHTRA SEAMLESS's cash flow from operating activities (CFO) during FY18 stood at Rs 927 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 122 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -954 million, an improvement of 28% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 104 million from the Rs 17 million net cash flows seen during FY17.

MAHARASHTRA SEAMLESS 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	2,414	927	-61.6%
Cash Flow from Investing Activities	Rs m	-1,011	122	-
Cash Flow from Financing Activities	Rs m	-1,329	-954	-
Net Cash Flow	Rs m	17	104	516.5%

Current Valuations for MAHARASHTRA SEAMLESS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.8, an improvement from the EPS of Rs 17.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 425.4, stands at 14.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 12.0 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	192.9	316.2
TTM Earnings per share	Rs	17.3	24.8
Diluted earnings per share	Rs	17.3	24.8
Price to Cash Flow	x	12.6	12.0
TTM P/E ratio	x	16.2	14.4
Price / Book Value ratio	x	0.6	1.0
Market Cap	Rs m	17,018	29,178
Dividends per share (Unadj.)	Rs	5.0	6.0

Ratio Analysis for MAHARASHTRA SEAMLESS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.2x during FY18, from 2.2x 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 7.2x during FY18, from 6.8x 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 5.7% during FY18, from 4.2% 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 8.8% during FY18, from 7.9% 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 5.1% during FY18, from 3.9% 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	2.2	4.2
Debtors’ Days	Days	872	685
Interest coverage	x	6.8	7.2
Debt to equity ratio	x	0.1	0.2
Return on assets	%	3.9	5.1
Return on equity	%	4.2	5.7
Return on capital employed	%	7.9	8.8

To see how MAHARASHTRA SEAMLESS has performed over the last 5 years, please visit here.

MAHARASHTRA SEAMLESS Share Price Performance

Over the last one year, MAHARASHTRA SEAMLESS share price has moved up from Rs 352.0 to Rs 425.4, registering a gain of Rs 73.4 or around 20.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 13,322.0 (down 2.0%). Over the last one year it has moved up from 11,804.5 to 13,322.0, a gain of 1,518 points (up 12.9%).

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

(To know more, check out historical annual results for MAHARASHTRA SEAMLESS and quarterly results for MAHARASHTRA SEAMLESS)

Read: Latest Annual Report Analysis of MAHARASHTRA SEAMLESS