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MOTHERSON SUMI 2017-18 Annual Report Analysis

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MOTHERSON SUMI 2017-18 Annual Report Analysis
Fri, 24 Aug

MOTHERSON SUMI 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.

MOTHERSON SUMI Income Statement Analysis

  • Operating income during the year rose 32.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 22.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.1% in FY18 as against 9.8% in FY17.
  • Depreciation charges and finance costs increased by 48.7% YoY and 9.6% YoY, respectively.
  • Other income declined by 35.6% YoY.
  • Net profit for the year grew by 4.0% YoY.
  • Net profit margins during the year declined from 5.1% in FY17 to 4.0% in FY18.

MOTHERSON SUMI Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 423,755 562,933 32.8%
Other income Rs m 2,642 1,701 -35.6%
Total Revenues Rs m 426,397 564,634 32.4%
Gross profit Rs m 41,668 51,226 22.9%
Depreciation Rs m 10,591 15,752 48.7%
Interest Rs m 3,749 4,108 9.6%
Profit before tax Rs m 29,970 33,067 10.3%
Tax Rs m 9,103 10,072 10.6%
Profit after tax Rs m 21,724 22,599 4.0%
Gross profit margin % 9.8 9.1
Effective tax rate % 30.4 30.5
Net profit margin % 5.1 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MOTHERSON SUMI Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 153 billion as compared to Rs 114 billion in FY17, thereby witnessing an increase of 34.7%.
  • Long-term debt down at Rs 76 billion as compared to Rs 94 billion during FY17, a fall of 19.8%.
  • Current assets rose 7% and stood at Rs 171 billion, while fixed assets rose 27% and stood at Rs 129 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 375 billion as against Rs 324 billion during FY17, thereby witnessing a growth of 16%.

MOTHERSON SUMI Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 82,727 98,841 19.5
 
Current Liabilities Rs m 113,827 153,342 34.7
Long-term Debt Rs m 94,440 75,701 -19.8
Total Liabilities Rs m 323,697 374,977 15.8
 
Current assets Rs m 160,480 171,001 6.6
Fixed Assets Rs m 101,021 128,527 27.2
Total Assets Rs m 323,697 374,977 15.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MOTHERSON SUMI Cash Flow Statement Analysis

  • MOTHERSON SUMI's cash flow from operating activities (CFO) during FY18 stood at Rs 33 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -32 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -22 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -22 billion from the Rs 32 billion net cash flows seen during FY17.

MOTHERSON SUMI 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 37,997 32,640 -14.1%
Cash Flow from Investing Activities Rs m -67,261 -31,941 -
Cash Flow from Financing Activities Rs m 55,175 -22,214 -
Net Cash Flow Rs m 31,719 -21,515 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for MOTHERSON SUMI

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.7, an decline from the EPS of Rs 15.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 300.7, stands at 25.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 8.5 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 17.1 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 301.9 267.4
TTM Earnings per share Rs 15.5 10.7
Diluted earnings per share Rs 10.3 10.7
Price to Cash Flow x 13.8 17.1
TTM P/E ratio x 17.2 25.8
Price / Book Value ratio x 5.3 8.5
Market Cap Rs m 421,971 632,955
Dividends per share (Unadj.) Rs 2.0 2.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for MOTHERSON SUMI

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 1.4x 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 9.0x during FY18, from 9.0x 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 22.9% during FY18, from 26.3% 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 21.1% during FY18, from 19.5% 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 7.1% during FY18, from 7.9% 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 1.4 1.1
Debtors’ Days Days 40 36
Interest coverage x 9.0 9.0
Debt to equity ratio x 1.1 0.8
Return on assets % 7.9 7.1
Return on equity % 26.3 22.9
Return on capital employed % 19.5 21.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how MOTHERSON SUMI has performed over the last 5 years, please visit here.

MOTHERSON SUMI Share Price Performance

Over the last one year, MOTHERSON SUMI share price has moved up from Rs 310.2 to Rs 300.7, registering a loss of Rs 9.6 or around 3.1%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for MOTHERSON SUMI and quarterly results for MOTHERSON SUMI)

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Here's an analysis of the annual report of MOTHERSON SUMI for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of MOTHERSON SUMI. Also includes updates on the valuation of MOTHERSON SUMI.

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