MMTC LTD 2017-18 Annual Report Analysis

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MMTC LTD 2017-18 Annual Report Analysis
Thu, 17 Jan

MMTC LTD 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.

MMTC LTD Income Statement Analysis

  • Operating income during the year rose 39.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 179.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 0.1% in FY18 as against 0.2% in FY17.
  • Depreciation charges decreased by 21.2% and finance costs decreased by 22.4% YoY, respectively.
  • Other income grew by 1.8% YoY.
  • Net profit for the year declined by 226.1% YoY.
  • Net profit margins during the year grew from 0.3% in FY17 to 0.2% in FY18.

MMTC LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 118,270 164,510 39.1%
Other income Rs m 449 457 1.8%
Total Revenues Rs m 118,718 164,967 39.0%
Gross profit Rs m -265 211 -179.6%
Depreciation Rs m 68 54 -21.2%
Interest Rs m 214 166 -22.4%
Profit before tax Rs m -99 448 -553.3%
Tax Rs m 242 102 -57.8%
Profit after tax Rs m -298 375 -226.1%
Gross profit margin % -0.2 0.1
Effective tax rate % -244.9 22.8
Net profit margin % -0.3 0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MMTC LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 38 billion as compared to Rs 45 billion in FY17, thereby witnessing an decrease of -15.1%.
  • Current assets fell 10% and stood at Rs 47 billion, while fixed assets rose 1% and stood at Rs 2 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 52 billion as against Rs 58 billion during FY17, thereby witnessing a fall of 12%.

MMTC LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 12,007 12,027 0.2
 
Current Liabilities Rs m 44,594 37,856 -15.1
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 58,478 51,725 -11.5
 
Current assets Rs m 51,888 46,616 -10.2
Fixed Assets Rs m 1,604 1,620 1.0
Total Assets Rs m 58,478 51,725 -11.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MMTC LTD Cash Flow Statement Analysis

  • MMTC LTD's cash flow from operating activities (CFO) during FY18 stood at Rs -5 billion 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 264 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -3 billion from the Rs 3 billion net cash flows seen during FY17.

MMTC LTD 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 2,729 -4,551 -
Cash Flow from Investing Activities Rs m -676 1,169 -
Cash Flow from Financing Activities Rs m 1,098 264 -76.0%
Net Cash Flow Rs m 3,151 -3,119 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for MMTC LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an improvement from the EPS of Rs -0.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 28.9, stands at 47.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.1 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 91.7 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 118.3 164.5
TTM Earnings per share Rs -0.3 0.4
Diluted earnings per share Rs -0.3 0.4
Price to Cash Flow x 45.2 91.7
TTM P/E ratio x 47.6 47.6
Price / Book Value ratio x 4.5 6.1
Market Cap Rs m 28,900 28,900
Dividends per share (Unadj.) Rs 0.3 0.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for MMTC LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during FY18, from 1.2x 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 3.7x during FY18, from 0.5x 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 3.1% during FY18, from -2.5% 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 5.4% during FY18, from 1.3% 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 1.0% during FY18, from -0.1% 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 1.2 1.2
Debtors’ Days Days 16 8
Interest coverage x 0.5 3.7
Debt to equity ratio x 0.0 0.0
Return on assets % -0.1 1.0
Return on equity % -2.5 3.1
Return on capital employed % 1.3 5.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

MMTC LTD Share Price Performance

Over the last one year, MMTC LTD share price has moved up from Rs 44.2 to Rs 28.9, registering a loss of Rs 15.3 or around 34.7%.

Overall, the S&P BSE SENSEX is up 4.7% over the year.

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

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Related Views on News

MMTC LTD Announces Quarterly Results (1QFY20); Net Profit Up 98.5% (Quarterly Result Update)

Aug 26, 2019 | Updated on Aug 26, 2019

For the quarter ended June 2019, MMTC LTD has posted a net profit of Rs 197 m (up 98.5% YoY). Sales on the other hand came in at Rs 69 bn (up 35.3% YoY). Read on for a complete analysis of MMTC LTD's quarterly results.

MMTC LTD Announces Quarterly Results (4QFY19); Net Profit Down 8.3% (Quarterly Result Update)

Jun 3, 2019 | Updated on Jun 3, 2019

For the quarter ended March 2019, MMTC LTD has posted a net profit of Rs 118 m (down 8.3% YoY). Sales on the other hand came in at Rs 71 bn (up 129.5% YoY). Read on for a complete analysis of MMTC LTD's quarterly results.

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