Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

Are you sitting on the sidelines
while this small cap trend unfolds?

(Minor market corrections will not stop this)




**Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
**By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.


AD

MAX FINANCIAL SERVICES 2017-18 Annual Report Analysis
Sat, 31 Mar

MAX FINANCIAL SERVICES 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.

MAX FINANCIAL SERVICES Income Statement Analysis

  • Operating income during the year rose 7.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 22.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.6% in FY18 as against 4.9% in FY17.
  • Depreciation charges increased by 1.0% and finance costs increased by 23.4% YoY, respectively.
  • Other income declined by 15.1% YoY.
  • Net profit for the year declined by 25.5% YoY.
  • Net profit margins during the year declined from 3.9% in FY17 to 2.7% in FY18.

MAX FINANCIAL SERVICES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 152,279 163,210 7.2%
Other income Rs m 208 177 -15.1%
Total Revenues Rs m 152,487 163,387 7.1%
Gross profit Rs m 7,522 5,865 -22.0%
Depreciation Rs m 625 632 1.0%
Interest Rs m 89 110 23.4%
Profit before tax Rs m 7,016 5,300 -24.5%
Tax Rs m 1,083 882 -18.6%
Profit after tax Rs m 5,933 4,418 -25.5%
Gross profit margin % 4.9 3.6
Effective tax rate % 15.4 16.6
Net profit margin % 3.9 2.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Coming Soon: Equitymaster Small Cap Meeting. Register now

MAX FINANCIAL SERVICES Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 529 billion as compared to Rs 52 billion in FY17, thereby witnessing an increase of 918.0%.
  • Current assets rose 755% and stood at Rs 545 billion, while fixed assets fell 97% and stood at Rs 14 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 558 billion as against Rs 470 billion during FY17, thereby witnessing a growth of 19%.

MAX FINANCIAL SERVICES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 23,266 18,020 -22.5
 
Current Liabilities Rs m 51,959 528,962 918.0
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 469,676 558,417 18.9
 
Current assets Rs m 63,684 544,676 755.3
Fixed Assets Rs m 405,992 13,741 -96.6
Total Assets Rs m 469,676 558,417 18.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MAX FINANCIAL SERVICES Cash Flow Statement Analysis

  • MAX FINANCIAL SERVICES's cash flow from operating activities (CFO) during FY18 stood at Rs 49 billion, an improvement of 13.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -43 billion, an improvement of 6.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion, an improvement of 46% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 5 billion from the Rs 204 million net cash flows seen during FY17.

MAX FINANCIAL SERVICES 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 42,663 48,531 13.8%
Cash Flow from Investing Activities Rs m -40,305 -42,709 -
Cash Flow from Financing Activities Rs m -2,153 -1,163 -
Net Cash Flow Rs m 204 4,659 2,180.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MAX FINANCIAL SERVICES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.5, an decline from the EPS of Rs 22.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 453.7, stands at -979.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 8.7 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 29.3 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 569.8 608.1
TTM Earnings per share Rs 22.2 16.5
Diluted earnings per share Rs 17.2 12.8
Price to Cash Flow x 30.3 29.3
TTM P/E ratio x 129.2 -979.7
Price / Book Value ratio x 5.6 8.2
Market Cap Rs m 129,947 147,772
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MAX FINANCIAL SERVICES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY18, from 1.2x 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 deteriorated and stood at 49.1x during FY18, from 79.5x 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 24.5% during FY18, from 25.5% 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 30.0% during FY18, from 30.5% 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 0.8% during FY18, from 1.3% 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 1.2 1.0
Debtors’ Days Days 127 132
Interest coverage x 79.5 49.1
Debt to equity ratio x 0.0 0.0
Return on assets % 1.3 0.8
Return on equity % 25.5 24.5
Return on capital employed % 30.5 30.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how MAX FINANCIAL SERVICES has performed over the last 5 years, please visit here.

MAX FINANCIAL SERVICES Share Price Performance

Over the last one year, MAX FINANCIAL SERVICES share price has moved down from Rs 576.6 to Rs 453.7, registering a loss of Rs 123.0 or around 21.3%.

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

(To know more, check out historical annual results for MAX FINANCIAL SERVICES and quarterly results for MAX FINANCIAL SERVICES)

Annual Report FAQs

What is the current share price of MAX FINANCIAL SERVICES?

MAX FINANCIAL SERVICES currently trades at Rs 955.7 per share. You can check out the latest share price performance of MAX FINANCIAL SERVICES here...

What was the revenue of MAX FINANCIAL SERVICES in FY18? How does it compare to earlier years?

The revenues of MAX FINANCIAL SERVICES stood at Rs 163,387 m in FY18, which was up 7.1% compared to Rs 152,487 m reported in FY17.

MAX FINANCIAL SERVICES' revenue has grown from Rs 117,119 m in FY16 to Rs 163,387 m in FY18.

Over the past 3 years, the revenue of MAX FINANCIAL SERVICES has grown at a CAGR of 18.1%.

What was the net profit of MAX FINANCIAL SERVICES in FY18? How does it compare to earlier years?

The net profit of MAX FINANCIAL SERVICES stood at Rs 4,418 m in FY18, which was down -25.5% compared to Rs 5,933 m reported in FY17.

This compares to a net profit of Rs 3,932 m in FY16.

Over the past 3 years, MAX FINANCIAL SERVICES net profit has grown at a CAGR of 6.0%.

What does the cash flow statement of MAX FINANCIAL SERVICES reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of MAX FINANCIAL SERVICES reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 48,531 m as compared to Rs 42,663 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -42,709 m as compared to Rs -40,305 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -1,163 m as compared to Rs -2,153 m in FY17.

Here's the cash flow statement of MAX FINANCIAL SERVICES for the past 3 years.

(Rs m)FY16FY17FY18
From Operations38,02142,66348,531
From Investments-35,030-40,305-42,709
From Financial Activity-1,869-2,153-1,163
Net Cashflow7372044,659

What does the Key Ratio analysis of MAX FINANCIAL SERVICES reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of MAX FINANCIAL SERVICES reveals:

  • Operating profit margins witnessed a fall and stood at 3.6% in FY18 as against 4.9% in FY17.
  • Net profit margins declined from 3.9% in FY17 to 2.7% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.0 in FY17.

Here's the ratio/financial analysis of MAX FINANCIAL SERVICES for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)4.44.93.6
Net Profit Margin (%)3.43.92.7
Debt to Equity Ratio (x)0.00.00.0

Read: Latest Annual Report Analysis of MAX FINANCIAL SERVICES

Equitymaster requests your view! Post a comment on "MAX FINANCIAL SERVICES 2017-18 Annual Report Analysis". Click here!