MUNJAL SHOWA 2017-18 Annual Report Analysis

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MUNJAL SHOWA 2017-18 Annual Report Analysis
Tue, 18 Dec

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 8.3% 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 down at 7.2% in FY18 as against 6.8% in FY17.
  • Depreciation charges decreased by 2.8% and finance costs increased by 200.0% 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 4.1% in FY17 to 4.8% in FY18.

MUNJAL SHOWA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 14,597 15,814 8.3%
Other income Rs m 176 207 17.6%
Total Revenues Rs m 14,772 16,021 8.5%
Gross profit Rs m 995 1,131 13.7%
Depreciation Rs m 291 282 -2.8%
Interest Rs m 1 2 200.0%
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 % 6.8 7.2
Effective tax rate % 31.0 26.5
Net profit margin % 4.1 4.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 13% 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 6,758 7,933 17.4
 
Current assets Rs m 4,335 5,778 33.3
Fixed Assets Rs m 1,808 1,580 -12.6
Total Assets Rs m 6,758 7,933 17.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MUNJAL SHOWA Cash Flow Statement Analysis

  • MUNJAL SHOWA's cash flow from operating activities (CFO) during FY18 stood at Rs 962 million, an improvement of 15.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -633 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 835 962 15.2%
Cash Flow from Investing Activities Rs m -793 -633 -
Cash Flow from Financing Activities Rs m -1 -194 -
Net Cash Flow Rs m 41 135 227.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 177.1, stands at 9.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.7 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 364.9 395.4
TTM Earnings per share Rs 15.2 19.4
Diluted earnings per share Rs 15.2 19.4
Price to Cash Flow x 7.9 6.7
TTM P/E ratio x 9.3 9.3
Price / Book Value ratio x 1.6 1.7
Market Cap Rs m 7,084 7,084
Dividends per share (Unadj.) Rs 4.0 4.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for MUNJAL SHOWA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved 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 703.7x during FY18, from 1,760.2x 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 18.5% 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 9.8% during FY18, from 9.0% 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 49 57
Interest coverage x 1,760.2 703.7
Debt to equity ratio x 0.0 0.0
Return on assets % 9.0 9.8
Return on equity % 11.8 13.6
Return on capital employed % 17.2 18.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 up from Rs 267.0 to Rs 177.1, registering a loss of Rs 89.9 or around 33.7%.

Overall, the S&P BSE SENSEX is up 7.4% over the year.

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

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