CERA SANITARY 2017-18 Annual Report Analysis

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CERA SANITARY 2017-18 Annual Report Analysis
Tue, 9 Apr

CERA SANITARY 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.

CERA SANITARY Income Statement Analysis

  • Operating income during the year rose 17.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 1.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.0% in FY18 as against 17.4% in FY17.
  • Depreciation charges increased by 22.5% and finance costs decreased by 0.9% YoY, respectively.
  • Other income declined by 0.8% YoY.
  • Net profit for the year grew by 6.0% YoY.
  • Net profit margins during the year declined from 9.8% in FY17 to 8.8% in FY18.

CERA SANITARY Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 10,085 11,853 17.5%
Other income Rs m 146 145 -0.8%
Total Revenues Rs m 10,231 11,998 17.3%
Gross profit Rs m 1,756 1,774 1.0%
Depreciation Rs m 222 271 22.5%
Interest Rs m 99 98 -0.9%
Profit before tax Rs m 1,582 1,549 -2.0%
Tax Rs m 580 488 -15.9%
Profit after tax Rs m 1,001 1,061 6.0%
Gross profit margin % 17.4 15.0
Effective tax rate % 36.7 31.5
Net profit margin % 9.8 8.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CERA SANITARY Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 3 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 4.3%.
  • Long-term debt down at Rs 459 million as compared to Rs 478 million during FY17, a fall of 3.9%.
  • Current assets rose 14% and stood at Rs 6 billion, while fixed assets rose 6% and stood at Rs 4 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 10 billion as against Rs 9 billion during FY17, thereby witnessing a growth of 11%.

CERA SANITARY Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 5,222 6,056 16.0
 
Current Liabilities Rs m 3,115 3,250 4.3
Long-term Debt Rs m 478 459 -3.9
Total Liabilities Rs m 9,446 10,461 10.7
 
Current assets Rs m 5,605 6,389 14.0
Fixed Assets Rs m 3,451 3,650 5.8
Total Assets Rs m 9,446 10,461 10.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CERA SANITARY Cash Flow Statement Analysis

  • CERA SANITARY's cash flow from operating activities (CFO) during FY18 stood at Rs 754 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -410 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -339 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 5 million from the Rs 2 million net cash flows seen during FY17.

CERA SANITARY 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 1,016 754 -25.8%
Cash Flow from Investing Activities Rs m -1,023 -410 -
Cash Flow from Financing Activities Rs m 8 -339 -
Net Cash Flow Rs m 2 5 231.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for CERA SANITARY

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 81.6, an improvement from the EPS of Rs 77.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,860.8, stands at 33.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.5 times, while the price to sales ratio stands at 3.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 27.2 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 775.2 911.1
TTM Earnings per share Rs 77.0 81.6
Diluted earnings per share Rs 79.1 83.8
Price to Cash Flow x 30.4 27.2
TTM P/E ratio x 34.6 33.7
Price / Book Value ratio x 6.1 7.5
Market Cap Rs m 37,219 36,218
Dividends per share (Unadj.) Rs 12.0 12.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for CERA SANITARY

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.0x during FY18, from 1.8x 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 16.9x during FY18, from 17.1x 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 17.5% during FY18, from 19.2% 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 25.3% during FY18, from 29.5% 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 11.1% during FY18, from 11.6% 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 1.8 2.0
Debtors’ Days Days 80 83
Interest coverage x 17.1 16.9
Debt to equity ratio x 0.1 0.1
Return on assets % 11.6 11.1
Return on equity % 19.2 17.5
Return on capital employed % 29.5 25.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

CERA SANITARY Share Price Performance

Over the last one year, CERA SANITARY share price has moved up from Rs 3,323.7 to Rs 2,860.8, registering a loss of Rs 462.9 or around 13.9%.

Overall, the S&P BSE SENSEX is up 14.9% over the year.

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

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