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MUNJAL SHOWA 2017-18 Annual Report Analysis
Sat, 31 Mar

MUNJAL SHOWA 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.

MUNJAL SHOWA Income Statement Analysis

  • Operating income during the year rose 16.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 13.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.3% in FY18 as against 7.5% in FY17.
  • Depreciation charges decreased by 2.8% and finance costs increased by 39.4% YoY, respectively.
  • Other income grew by 17.6% YoY.
  • Net profit for the year grew by 27.7% YoY.
  • Net profit margins during the year grew from 4.6% in FY17 to 5.0% in FY18.

MUNJAL SHOWA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 13,288 15,474 16.5%
Other income Rs m 176 207 17.6%
Total Revenues Rs m 13,464 15,681 16.5%
Gross profit Rs m 997 1,133 13.7%
Depreciation Rs m 291 282 -2.8%
Interest Rs m 2 3 39.4%
Profit before tax Rs m 880 1,054 19.8%
Tax Rs m 272 279 2.4%
Profit after tax Rs m 607 775 27.7%
Gross profit margin % 7.5 7.3
Effective tax rate % 31.0 26.5
Net profit margin % 4.6 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

MUNJAL SHOWA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 2 billion as compared to Rs 2 billion in FY17, thereby witnessing an increase of 41.7%.
  • Current assets rose 33% and stood at Rs 6 billion, while fixed assets fell 9% and stood at Rs 2 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 8 billion as against Rs 7 billion during FY17, thereby witnessing a growth of 17%.

MUNJAL SHOWA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 5,127 5,696 11.1
 
Current Liabilities Rs m 1,557 2,207 41.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 7,065 8,252 16.8
 
Current assets Rs m 4,335 5,778 33.3
Fixed Assets Rs m 2,730 2,474 -9.4
Total Assets Rs m 7,065 8,252 16.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MUNJAL SHOWA Cash Flow Statement Analysis

  • MUNJAL SHOWA's cash flow from operating activities (CFO) during FY18 stood at Rs 963 million, an improvement of 15.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -634 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -194 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 135 million from the Rs 41 million net cash flows seen during FY17.

MUNJAL SHOWA 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 835 963 15.3%
Cash Flow from Investing Activities Rs m -793 -634 -
Cash Flow from Financing Activities Rs m -1 -194 -
Net Cash Flow Rs m 41 135 228.0%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MUNJAL SHOWA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.4, an improvement from the EPS of Rs 15.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 204.5, stands at 10.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.4 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 332.2 386.8
TTM Earnings per share Rs 15.2 19.4
Diluted earnings per share Rs 15.2 19.4
Price to Cash Flow x 9.6 9.4
TTM P/E ratio x 15.2 10.5
Price / Book Value ratio x 1.6 1.7
Market Cap Rs m 8,277 9,921
Dividends per share (Unadj.) Rs 4.0 4.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MUNJAL SHOWA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY18, from 2.8x 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 335.6x during FY18, from 390.2x 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 13.6% during FY18, from 11.8% 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 improved and stood at 18.6% during FY18, from 17.2% 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 9.4% during FY18, from 8.6% 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 2.8 2.6
Debtors’ Days Days 533 578
Interest coverage x 390.2 335.6
Debt to equity ratio x 0.0 0.0
Return on assets % 8.6 9.4
Return on equity % 11.8 13.6
Return on capital employed % 17.2 18.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

MUNJAL SHOWA Share Price Performance

Over the last one year, MUNJAL SHOWA share price has moved down from Rs 214.7 to Rs 204.5, registering a loss of Rs 10.3 or around 4.8%.

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

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

Annual Report FAQs

What is the current share price of MUNJAL SHOWA?

MUNJAL SHOWA currently trades at Rs 163.2 per share. You can check out the latest share price performance of MUNJAL SHOWA here...

What was the revenue of MUNJAL SHOWA in FY18? How does it compare to earlier years?

The revenues of MUNJAL SHOWA stood at Rs 15,681 m in FY18, which was up 16.5% compared to Rs 13,464 m reported in FY17.

MUNJAL SHOWA's revenue has grown from Rs 14,674 m in FY14 to Rs 15,681 m in FY18.

Over the past 5 years, the revenue of MUNJAL SHOWA has grown at a CAGR of 1.7%.

What was the net profit of MUNJAL SHOWA in FY18? How does it compare to earlier years?

The net profit of MUNJAL SHOWA stood at Rs 775 m in FY18, which was up 27.7% compared to Rs 607 m reported in FY17.

This compares to a net profit of Rs 612 m in FY16 and a net profit of Rs 756 m in FY15.

Over the past 5 years, MUNJAL SHOWA net profit has grown at a CAGR of 2.7%.

What does the cash flow statement of MUNJAL SHOWA 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 MUNJAL SHOWA reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 963 m as compared to Rs 835 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -634 m as compared to Rs -793 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -194 m as compared to Rs -1 m in FY17.

Here's the cash flow statement of MUNJAL SHOWA for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations551555650835963
From Investments-177-475-263-793-634
From Financial Activity-398-219-379-1-194
Net Cashflow-24-140941135

What does the Key Ratio analysis of MUNJAL SHOWA 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 MUNJAL SHOWA reveals:

  • Operating profit margins witnessed a fall and stood at 7.3% in FY18 as against 7.5% in FY17.
  • Net profit margins grew from 4.6% in FY17 to 5.0% 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 MUNJAL SHOWA for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)7.28.58.27.57.3
Net Profit Margin (%)4.85.04.54.65.0
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of MUNJAL SHOWA

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