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

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

New Guide Available for Download
Small Cap Multibaggers
in the Making

mailtimers.com


**Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
**By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.


AD

MARG 2017-18 Annual Report Analysis
Sat, 31 Mar

MARG 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.

MARG Income Statement Analysis

  • Operating income during the year fell 80.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 118.6% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 18.4% in FY18 as against 19.4% in FY17.
  • Depreciation charges decreased by 70.1% and finance costs decreased by 90.4% YoY, respectively.
  • Other income declined by 85.9% YoY.
  • Net profit for the year declined by 75.3% YoY.
  • Net profit margins during the year declined from 57.8% in FY17 to 72.9% in FY18.

MARG Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 4,549 891 -80.4%
Other income Rs m 343 49 -85.9%
Total Revenues Rs m 4,892 939 -80.8%
Gross profit Rs m 881 -164 -118.6%
Depreciation Rs m 783 234 -70.1%
Interest Rs m 3,009 289 -90.4%
Profit before tax Rs m -2,568 -639 -75.1%
Tax Rs m 62 10 -83.4%
Profit after tax Rs m -2,630 -649 -75.3%
Gross profit margin % 19.4 -18.4
Effective tax rate % -2.4 -1.6
Net profit margin % -57.8 -72.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Claim your guide now: Small Cap Multibaggers in the Making

MARG Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 37 billion as compared to Rs 45 billion in FY17, thereby witnessing an decrease of -18.8%.
  • Current assets fell 3% and stood at Rs 19 billion, while fixed assets fell 44% and stood at Rs 17 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 36 billion as against Rs 50 billion during FY17, thereby witnessing a fall of 28%.

MARG Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m -9,727 -5,550 -42.9
 
Current Liabilities Rs m 45,057 36,568 -18.8
Long-term Debt Rs m 15,695 0 -100.0
Total Liabilities Rs m 50,443 36,118 -28.4
 
Current assets Rs m 19,308 18,742 -2.9
Fixed Assets Rs m 31,135 17,376 -44.2
Total Assets Rs m 50,443 36,118 -28.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MARG Cash Flow Statement Analysis

  • MARG'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 -4 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -19 million, an improvement of 98% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -1 billion from the Rs 528 million net cash flows seen during FY17.

MARG 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 1,244 -1,071 -
Cash Flow from Investing Activities Rs m 300 -4 -
Cash Flow from Financing Activities Rs m -1,016 -19 -
Net Cash Flow Rs m 528 -1,093 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MARG

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -17.0, an improvement from the EPS of Rs -69.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 19.8, stands at -7.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -0.2 times, while the price to sales ratio stands at 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at -1.8 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 119.3 23.4
TTM Earnings per share Rs -69.0 -17.0
Diluted earnings per share Rs -51.7 -12.8
Price to Cash Flow x -0.3 -1.8
TTM P/E ratio x -1.9 -7.6
Price / Book Value ratio x 0.0 -0.1
Market Cap Rs m 422 765
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MARG

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.5x during FY18, from 0.4x 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 -1.2x during FY18, from 0.1x 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 11.7% during FY18, from 27.0% 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 6.3% during FY18, from 7.4% 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 -1.0% during FY18, from 0.8% 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 0.4 0.5
Debtors’ Days Days 26 144
Interest coverage x 0.1 -1.2
Debt to equity ratio x -1.6 0.0
Return on assets % 0.8 -1.0
Return on equity % 27.0 11.7
Return on capital employed % 7.4 6.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

MARG Share Price Performance

Over the last one year, MARG share price has moved up from Rs 9.9 to Rs 19.8, registering a gain of Rs 9.9 or around 100.5%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,229.9 (down 1.1%). Over the last one year it has moved up from 0.0 to 2,229.9, a gain of 2,230 points (up 0.0%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Annual Report FAQs

What is the current share price of MARG?

MARG currently trades at Rs 3.6 per share. You can check out the latest share price performance of MARG here...

What was the revenue of MARG in FY18? How does it compare to earlier years?

The revenues of MARG stood at Rs 939 m in FY18, which was down -80.8% compared to Rs 4,892 m reported in FY17.

MARG's revenue has fallen from Rs 5,859 m in FY14 to Rs 939 m in FY18.

Over the past 5 years, the revenue of MARG has grown at a CAGR of -36.7%.

What was the net profit of MARG in FY18? How does it compare to earlier years?

The net loss of MARG stood at Rs -649 m in FY18, which was down -75.3% compared to Rs -2,630 m reported in FY17.

This compares to a net loss of Rs -3,925 m in FY16 and a net loss of Rs -4,798 m in FY15.

Over the past 5 years, MARG net profit has grown at a CAGR of -42.0%.

What does the cash flow statement of MARG reveal?

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 MARG reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs -1,071 m as compared to Rs 1,244 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -4 m as compared to Rs 300 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -19 m as compared to Rs -1,016 m in FY17.

Here's the cash flow statement of MARG for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations1,4292,0788511,244-1,071
From Investments-1,717-1,461687300-4
From Financial Activity-488-355-1,272-1,016-19
Net Cashflow-775262267528-1,093

What does the Key Ratio analysis of MARG reveal?

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 MARG reveals:

  • Operating profit margins witnessed a growth and stood at 18.4% in FY18 as against 19.4% in FY17.
  • Net profit margins declined from 57.8% in FY17 to 72.9% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to -1.6 in FY17.

Here's the ratio/financial analysis of MARG for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)-17.112.827.519.4-18.4
Net Profit Margin (%)-100.3-122.4-103.1-57.8-72.9
Debt to Equity Ratio (x)-8.2-2.5-1.8-1.60.0

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