MOTILAL OSWAL 2017-18 Annual Report Analysis

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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)

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