MRF 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.
No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | % Change | |
---|---|---|---|---|
Net Sales | Rs m | 118,953 | 145,438 | 22.3% |
Other income | Rs m | 3,310 | 3,307 | -0.1% |
Total Revenues | Rs m | 122,262 | 148,744 | 21.7% |
Gross profit | Rs m | 26,456 | 22,875 | -13.5% |
Depreciation | Rs m | 6,106 | 7,067 | 15.7% |
Interest | Rs m | 2,566 | 2,587 | 0.8% |
Profit before tax | Rs m | 21,094 | 16,527 | -21.7% |
Tax | Rs m | 6,232 | 5,210 | -16.4% |
Profit after tax | Rs m | 14,862 | 11,316 | -23.9% |
Gross profit margin | % | 22.2 | 15.7 | |
Effective tax rate | % | 29.5 | 31.5 | |
Net profit margin | % | 12.5 | 7.8 |
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No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | % Change | |
---|---|---|---|---|
Networth | Rs m | 86,408 | 97,382 | 12.7 |
Current Liabilities | Rs m | 45,020 | 45,899 | 2.0 |
Long-term Debt | Rs m | 12,383 | 13,193 | 6.5 |
Total Liabilities | Rs m | 150,482 | 164,782 | 9.5 |
Current assets | Rs m | 73,136 | 78,745 | 7.7 |
Fixed Assets | Rs m | 77,345 | 86,037 | 11.2 |
Total Assets | Rs m | 150,482 | 164,782 | 9.5 |
Particulars | No. of months | 12 | 12 | % Change |
---|---|---|---|---|
Year Ending | Mar-17 | Mar-18 | ||
Cash Flow from Operating Activities | Rs m | 19,557 | 24,130 | 23.4% |
Cash Flow from Investing Activities | Rs m | -13,927 | -20,139 | - |
Cash Flow from Financing Activities | Rs m | -4,376 | -4,526 | - |
Net Cash Flow | Rs m | 1,254 | -535 | - |
No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | |
---|---|---|---|
Sales per share (Unadj.) | Rs | 28,054.8 | 34,301.4 |
TTM Earnings per share | Rs | 3,505.2 | 2,668.9 |
Diluted earnings per share | Rs | 3,504.3 | 2,668.2 |
Price to Cash Flow | x | 12.3 | 15.5 |
TTM P/E ratio | x | 17.7 | 28.1 |
Price / Book Value ratio | x | 2.2 | 2.9 |
Market Cap | Rs m | 194,167 | 285,424 |
Dividends per share (Unadj.) | Rs | 60.0 | 60.0 |
Current Ratio: The company's current ratio improved and stood at 1.7x during FY18, from 1.6x 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 7.4x during FY18, from 9.2x 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.
Return on Equity (ROE): The ROE for the company declined and down at 11.6% during FY18, from 17.2% 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 17.3% during FY18, from 23.9% 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 8.4% during FY18, from 11.6% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.
No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | |
---|---|---|---|
Current ratio | x | 1.6 | 1.7 |
Debtors’ Days | Days | 6 | 5 |
Interest coverage | x | 9.2 | 7.4 |
Debt to equity ratio | x | 0.1 | 0.1 |
Return on assets | % | 11.6 | 8.4 |
Return on equity | % | 17.2 | 11.6 |
Return on capital employed | % | 23.9 | 17.3 |
To see how MRF has performed over the last 5 years, please visit here.
Over the last one year, MRF share price has moved up from Rs 60,723.9 to Rs 72,300.7, registering a gain of Rs 11,576.9 or around 19.1%.
Overall, the S&P BSE SENSEX is up 12.1% over the year.
(To know more, check out historical annual results for MRF and quarterly results for MRF)
MRF currently trades at Rs 129,700.0 per share. You can check out the latest share price performance of MRF here...
The revenues of MRF stood at Rs 148,744 m in FY18, which was up 21.7% compared to Rs 122,262 m reported in FY17.
MRF's revenue has grown from Rs 109,385 m in FY13 to Rs 148,744 m in FY18.
Over the past 6 years, the revenue of MRF has grown at a CAGR of 6.3%.
The net profit of MRF stood at Rs 11,316 m in FY18, which was down -23.9% compared to Rs 14,862 m reported in FY17.
This compares to a net profit of Rs 25,094 m in FY16 and a net profit of Rs 9,083 m in FY14.
Over the past 6 years, MRF net profit has grown at a CAGR of 7.0%.
The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.
This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.
The cash flow statement of MRF reveals:
Here's the cash flow statement of MRF for the past 6 years.
(Rs m) | FY13 | FY14 | FY16 | FY17 | FY18 |
---|---|---|---|---|---|
From Operations | 14,994 | 16,995 | 30,435 | 19,557 | 24,130 |
From Investments | -9,586 | -17,906 | -34,078 | -13,927 | -20,139 |
From Financial Activity | -3,130 | 672 | 2,123 | -4,376 | -4,526 |
Net Cashflow | 2,278 | -240 | -1,520 | 1,254 | -535 |
Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.
The ratio/financial analysis of MRF reveals:
Here's the ratio/financial analysis of MRF for the past 6 years.
FY13 | FY14 | FY16 | FY17 | FY18 | |
---|---|---|---|---|---|
Operating Profit Margin (%) | 16.3 | 16.4 | 24.8 | 22.2 | 15.7 |
Net Profit Margin (%) | 7.4 | 7.7 | 14.0 | 12.5 | 7.8 |
Debt to Equity Ratio (x) | 0.3 | 0.3 | 0.2 | 0.1 | 0.1 |
Read: Latest Annual Report Analysis of MRF
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