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UNITED SPIRITS 2017-18 Annual Report Analysis

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

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UNITED SPIRITS Announces Quarterly Results (3QFY19); Net Profit Up 42.8% (Quarterly Result Update)

Jan 24, 2019 | Updated on Jan 24, 2019

For the quarter ended December 2018, UNITED SPIRITS has posted a net profit of Rs 2 bn (up 42.8% YoY). Sales on the other hand came in at Rs 78 bn (up 8.8% YoY). Read on for a complete analysis of UNITED SPIRITS's quarterly results.

UNITED SPIRITS Announces Quarterly Results (2QFY19); Net Profit Up 69.0% (Quarterly Result Update)

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