BOSCH 2017-18 Annual Report Analysis

Sat, 31 Mar

BOSCH 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.

BOSCH Income Statement Analysis

• Operating income during the year rose 10.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 14.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.4% in FY18 as against 22.4% in FY17.
• Depreciation charges increased by 2.4% and finance costs decreased by 87.9% YoY, respectively.
• Other income declined by 4.2% YoY.
• Net profit for the year declined by 21.3% YoY.
• Net profit margins during the year declined from 16.8% in FY17 to 11.9% in FY18.

BOSCH Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	103,938	115,080	10.7%
Other income	Rs m	5,343	5,118	-4.2%
Total Revenues	Rs m	109,281	120,198	10.0%
Gross profit	Rs m	23,315	19,993	-14.2%
Depreciation	Rs m	4,562	4,672	2.4%
Interest	Rs m	272	33	-87.9%
Profit before tax	Rs m	23,824	20,406	-14.3%
Tax	Rs m	6,413	6,698	4.4%
Profit after tax	Rs m	17,411	13,708	-21.3%
Gross profit margin	%	22.4	17.4
Effective tax rate	%	26.9	32.8
Net profit margin	%	16.8	11.9

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

BOSCH Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 42 billion as compared to Rs 34 billion in FY17, thereby witnessing an increase of 25.1%.
• Current assets rose 21% and stood at Rs 80 billion, while fixed assets rose 12% and stood at Rs 61 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 141 billion as against Rs 120 billion during FY17, thereby witnessing a growth of 17%.

BOSCH Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	87,906	99,726	13.4
Current Liabilities	Rs m	33,546	41,952	25.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	120,478	141,043	17.1
Current assets	Rs m	66,241	80,108	20.9
Fixed Assets	Rs m	54,237	60,935	12.3
Total Assets	Rs m	120,478	141,043	17.1

BOSCH Cash Flow Statement Analysis

• BOSCH's cash flow from operating activities (CFO) during FY18 stood at Rs 17 billion, an improvement of 18.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -12 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -3 billion, an improvement of 88% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 2 billion from the Rs 330 million net cash flows seen during FY17.

BOSCH 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	14,567	17,287	18.7%
Cash Flow from Investing Activities	Rs m	12,460	-11,703	-
Cash Flow from Financing Activities	Rs m	-26,697	-3,246	-
Net Cash Flow	Rs m	330	2,338	608.5%

Current Valuations for BOSCH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 449.1, an decline from the EPS of Rs 570.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 18,136.7, stands at 39.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.4 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 35.1 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	3,405.6	3,770.6
TTM Earnings per share	Rs	570.5	449.1
Diluted earnings per share	Rs	590.3	464.8
Price to Cash Flow	x	30.6	35.1
TTM P/E ratio	x	46.2	39.0
Price / Book Value ratio	x	7.6	6.5
Market Cap	Rs m	666,191	644,521
Dividends per share (Unadj.)	Rs	165.0	100.0

Ratio Analysis for BOSCH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY18, from 2.0x 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 619.4x during FY18, from 88.6x 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 13.7% during FY18, from 19.8% 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 20.5% during FY18, from 27.4% 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 9.7% during FY18, from 14.7% 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	2.0	1.9
Debtors’ Days	Days	42	51
Interest coverage	x	88.6	619.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.7	9.7
Return on equity	%	19.8	13.7
Return on capital employed	%	27.4	20.5

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

BOSCH Share Price Performance

Over the last one year, BOSCH share price has moved down from Rs 22,778.6 to Rs 18,136.7, registering a loss of Rs 4,642.0 or around 20.4%.

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

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

Read: Latest Annual Report Analysis of BOSCH