X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
MOTILAL OSWAL 2017-18 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

MOTILAL OSWAL 2017-18 Annual Report Analysis
Fri, 21 Dec

MOTILAL OSWAL 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.

MOTILAL OSWAL Income Statement Analysis

  • Operating income during the year rose 49.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 38.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 46.5% in FY18 as against 50.3% in FY17.
  • Depreciation charges increased by 14.2% and finance costs increased by 12.1% YoY, respectively.
  • Other income declined by 73.7% YoY.
  • Net profit for the year grew by 56.0% YoY.
  • Net profit margins during the year grew from 18.7% in FY17 to 20.3% in FY18.

MOTILAL OSWAL Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 18,409 27,480 49.3%
Other income Rs m 828 217 -73.7%
Total Revenues Rs m 19,236 27,697 44.0%
Gross profit Rs m 9,259 12,779 38.0%
Depreciation Rs m 328 375 14.2%
Interest Rs m 4,423 4,956 12.1%
Profit before tax Rs m 5,335 7,666 43.7%
Tax Rs m 1,411 2,043 44.8%
Profit after tax Rs m 3,600 5,615 56.0%
Gross profit margin % 50.3 46.5
Effective tax rate % 26.4 26.7
Net profit margin % 18.7 20.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MOTILAL OSWAL Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 42 billion as compared to Rs 28 billion in FY17, thereby witnessing an increase of 46.8%.
  • Long-term debt down at Rs 32 billion as compared to Rs 37 billion during FY17, a fall of 12.7%.
  • Current assets rose 9% and stood at Rs 29 billion, while fixed assets rose 20% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 99 billion as against Rs 84 billion during FY17, thereby witnessing a growth of 17%.

MOTILAL OSWAL Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 17,860 22,685 27.0
 
Current Liabilities Rs m 28,499 41,835 46.8
Long-term Debt Rs m 37,034 32,329 -12.7
Total Liabilities Rs m 84,414 98,645 16.9
 
Current assets Rs m 26,579 29,019 9.2
Fixed Assets Rs m 2,594 3,113 20.0
Total Assets Rs m 84,414 98,645 16.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MOTILAL OSWAL Cash Flow Statement Analysis

  • MOTILAL OSWAL's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 715 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -91 million from the Rs 1 billion net cash flows seen during FY17.

MOTILAL OSWAL 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 -19,805 1,118 -
Cash Flow from Investing Activities Rs m -3,142 -1,907 -
Cash Flow from Financing Activities Rs m 24,200 715 -97.0%
Net Cash Flow Rs m 1,253 -91 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for MOTILAL OSWAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.7, an improvement from the EPS of Rs 24.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 636.0, stands at 22.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.4 times, while the price to sales ratio stands at 6.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.4 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 127.4 189.4
TTM Earnings per share Rs 24.9 38.7
Diluted earnings per share Rs 24.8 38.7
Price to Cash Flow x 23.1 15.4
TTM P/E ratio x 22.8 22.9
Price / Book Value ratio x 4.1 7.4
Market Cap Rs m 91,870 92,373
Dividends per share (Unadj.) Rs 0.0 4.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for MOTILAL OSWAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.7x during FY18, from 0.9x 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 2.5x during FY18, from 2.2x 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 24.8% during FY18, from 20.2% 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 improved and stood at 22.9% 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 10.7% during FY18, from 9.5% 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 0.9 0.7
Debtors’ Days Days 250 139
Interest coverage x 2.2 2.5
Debt to equity ratio x 2.1 1.4
Return on assets % 9.5 10.7
Return on equity % 20.2 24.8
Return on capital employed % 17.2 22.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

MOTILAL OSWAL Share Price Performance

Over the last one year, MOTILAL OSWAL share price has moved up from Rs 1,560.5 to Rs 636.0, registering a loss of Rs 924.5 or around 59.2%.

Overall, the S&P BSE SENSEX is up 7.9% over the year.

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

Equitymaster requests your view! Post a comment on "MOTILAL OSWAL 2017-18 Annual Report Analysis". Click here!

  

Related Views on News

MOTILAL OSWAL Announces Quarterly Results (3QFY19); Net Profit Down 76.1% (Quarterly Result Update)

Jan 18, 2019 | Updated on Jan 18, 2019

For the quarter ended December 2018, MOTILAL OSWAL has posted a net profit of Rs 354 m (down 76.1% YoY). Sales on the other hand came in at Rs 6 bn (down 11.1% YoY). Read on for a complete analysis of MOTILAL OSWAL's quarterly results.

MOTILAL OSWAL Announces Quarterly Results (2QFY19); Net Profit Down 97.9% (Quarterly Result Update)

Nov 6, 2018 | Updated on Nov 6, 2018

For the quarter ended September 2018, MOTILAL OSWAL has posted a net profit of Rs 31 m (down 97.9% YoY). Sales on the other hand came in at Rs 7 bn (down 3.2% YoY). Read on for a complete analysis of MOTILAL OSWAL's quarterly results.

CreditAccess Grameen IPO: Should You Apply to this Interesting Microfinance Play? (IPO)

Aug 7, 2018

Should you apply to the IPO of CreditAccess Grameen Ltd?

HDFC AMC IPO: Do Valuations Leave Enough on Table for Investors? (IPO)

Jul 20, 2018

Should you subscribe to the IPO of HDFC AMC Ltd?

IndoStar Capital Finance IPO: Is This NBFC Worth Betting On? (IPO)

May 8, 2018

Should you apply for the IPO of IndoStar Capital Finance?

More Views on News

Most Popular

This is Why the Stock of Jubilant FoodWorks Went Up 1,160%(The 5 Minute Wrapup)

Apr 12, 2019

This critical business strategy has enabled companies to scale their operations faster.

Pocketing Massive Gains with HDFC And HDFC Bank(Profit Hunter)

Apr 12, 2019

Here's how one could have generated gains of Rs 59,250 in 10 days by trading HDFC and HDFC Bank with a capital of Rs 4 lakh.

My Master Series on How to Trade Election 2019(Profit Hunter)

Apr 16, 2019

For 30 years he has watched how elections impact the markets, and practiced how to profit from it. Now he is here...telling you everything. Read on...

Election Series: Follow the World's Biggest Traders To See Where the Money Flows(The 5 Minute Wrapup)

Apr 17, 2019

20% of all the traders bring in 80% of the money. Watch these 20% and you get a working idea of which way the wind is blowing.

A Letter to You from India's No. 1 Trader(The 5 Minute Wrapup)

Apr 15, 2019

It's our great pleasure to introduce Vijay Bhambwani to our readers - we consider Vijay to be India's best trader. Read on to find out why...

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK MOTILAL OSWAL

  • Track your investment in MOTILAL OSWAL with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MOTILAL OSWAL - JSW HOLDINGS COMPARISON

COMPARE MOTILAL OSWAL WITH

MARKET STATS