UNITED SPIRITS 2017-18 Annual Report Analysis

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

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

UNITED SPIRITS 2017-18 Annual Report Analysis
Wed, 19 Dec

UNITED SPIRITS 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.

UNITED SPIRITS Income Statement Analysis

  • Operating income during the year fell 2.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 21.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.0% in FY18 as against 11.2% in FY17.
  • Depreciation charges increased by 2.0% and finance costs decreased by 27.8% YoY, respectively.
  • Other income grew by 107.9% YoY.
  • Net profit for the year grew by 601.0% YoY.
  • Net profit margins during the year grew from 1.0% in FY17 to 7.4% in FY18.

UNITED SPIRITS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 88,175 85,906 -2.6%
Other income Rs m 1,053 2,189 107.9%
Total Revenues Rs m 89,228 88,095 -1.3%
Gross profit Rs m 9,892 12,007 21.4%
Depreciation Rs m 1,886 1,923 2.0%
Interest Rs m 3,751 2,710 -27.8%
Profit before tax Rs m 5,308 9,563 80.2%
Tax Rs m 697 2,599 272.9%
Profit after tax Rs m 930 6,519 601.0%
Gross profit margin % 11.2 14.0
Effective tax rate % 13.1 27.2
Net profit margin % 1.0 7.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



UNITED SPIRITS Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 57 billion as compared to Rs 62 billion in FY17, thereby witnessing an decrease of -7.9%.
  • Long-term debt down at Rs 8 billion as compared to Rs 9 billion during FY17, a fall of 12.3%.
  • Current assets fell 0% and stood at Rs 57 billion, while fixed assets fell 11% and stood at Rs 19 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 90 billion as against Rs 89 billion during FY17, thereby witnessing a growth of 1%.

UNITED SPIRITS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 17,856 24,191 35.5
 
Current Liabilities Rs m 61,989 57,082 -7.9
Long-term Debt Rs m 8,697 7,628 -12.3
Total Liabilities Rs m 88,959 89,563 0.7
 
Current assets Rs m 57,491 57,362 -0.2
Fixed Assets Rs m 21,159 18,931 -10.5
Total Assets Rs m 88,959 89,563 0.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



UNITED SPIRITS Cash Flow Statement Analysis

  • UNITED SPIRITS's cash flow from operating activities (CFO) during FY18 stood at Rs 9 billion, an improvement of 43.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -10 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 634 million from the Rs -502 million net cash flows seen during FY17.

UNITED SPIRITS 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 6,468 9,251 43.0%
Cash Flow from Investing Activities Rs m -2,273 1,044 -
Cash Flow from Financing Activities Rs m -4,749 -9,661 -
Net Cash Flow Rs m -502 634 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for UNITED SPIRITS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 44.9, an improvement from the EPS of Rs 6.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 647.4, stands at 13.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 17.5 times, while the price to sales ratio stands at 4.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.1 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 606.8 591.2
TTM Earnings per share Rs 6.4 44.9
Diluted earnings per share Rs 6.4 44.9
Price to Cash Flow x 33.4 11.1
TTM P/E ratio x 13.7 13.7
Price / Book Value ratio x 18.3 17.5
Market Cap Rs m 94,080 94,087
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for UNITED SPIRITS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY18, from 0.9x 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 4.5x during FY18, from 2.4x 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 26.9% during FY18, from 5.2% 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 37.2% during FY18, from 20.3% 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 10.3% during FY18, from 5.3% 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 0.9 1.0
Debtors’ Days Days 122 115
Interest coverage x 2.4 4.5
Debt to equity ratio x 0.5 0.3
Return on assets % 5.3 10.3
Return on equity % 5.2 26.9
Return on capital employed % 20.3 37.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how UNITED SPIRITS has performed over the last 5 years, please visit here.

UNITED SPIRITS Share Price Performance

Over the last one year, UNITED SPIRITS share price has moved up from Rs 695.2 to Rs 647.4, registering a loss of Rs 47.8 or around 6.9%.

Overall, the S&P BSE SENSEX is up 8.6% over the year.

(To know more, check out historical annual results for UNITED SPIRITS and quarterly results for UNITED SPIRITS)

Equitymaster requests your view! Post a comment on "UNITED SPIRITS 2017-18 Annual Report Analysis". Click here!

1 Responses to "UNITED SPIRITS 2017-18 Annual Report Analysis"

Parasuram

Jul 22, 2018

Dear Team

I bought this script based on my watch list, now it is come down to 50% from its buy value. please advise to proceed further

Like (1)
  
Equitymaster requests your view! Post a comment on "UNITED SPIRITS 2017-18 Annual Report Analysis". Click here!

Related Views on News

UNITED SPIRITS Announces Quarterly Results (2QFY20); Net Profit Down 38.7% (Quarterly Result Update)

Nov 6, 2019 | Updated on Nov 6, 2019

For the quarter ended September 2019, UNITED SPIRITS has posted a net profit of Rs 2 bn (down 38.7% YoY). Sales on the other hand came in at Rs 73 bn (up 2.4% YoY). Read on for a complete analysis of UNITED SPIRITS's quarterly results.

UNITED SPIRITS 2018-19 Annual Report Analysis (Annual Result Update)

Sep 16, 2019 | Updated on Sep 16, 2019

Here's an analysis of the annual report of UNITED SPIRITS for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of UNITED SPIRITS. Also includes updates on the valuation of UNITED SPIRITS.

UNITED SPIRITS Announces Quarterly Results (1QFY20); Net Profit Up 142.8% (Quarterly Result Update)

Jul 24, 2019 | Updated on Jul 24, 2019

For the quarter ended June 2019, UNITED SPIRITS has posted a net profit of Rs 2 bn (up 142.8% YoY). Sales on the other hand came in at Rs 71 bn (up 10.3% YoY). Read on for a complete analysis of UNITED SPIRITS's quarterly results.

More Views on News

Most Popular

My Latest Stock Recommendation(Fast Profits Daily)

Jan 10, 2020

The story behind my latest stock recommendation and an important announcement.

Saffron Curtain = Hindutva Rate of Growth?(The Honest Truth)

Jan 8, 2020

Will the Indian economy revert to a sub-3% growth rate?

Multibaggers of the Next Decade(The 5 Minute Wrapup)

Jan 6, 2020

The one key ingredient to be seen amongst top multibaggers of the next decade

Your Safe Income Options for 2020(Fast Profits Daily)

Jan 9, 2020

What are you safest investing options in 2020 when interest rates fall.

I Made a Killing in the Markets this Week... Here's How(Profit Hunter)

Jan 10, 2020

How we made a killing in the markets amidst geopolitical tension and war mongering.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get our special report, Secret to Increasing Your Trading Profits Today Now!
We will never sell or rent your email id.
Please read our Terms

TRACK UNITED SPIRITS

  • Track your investment in UNITED SPIRITS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON UNITED SPIRITS

UNITED SPIRITS - LAKSHMI OVERSEAS IND. COMPARISON

COMPARE UNITED SPIRITS WITH

MARKET STATS