MARG LTD 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?  

MARG LTD 2017-18 Annual Report Analysis
Tue, 18 Dec

MARG LTD 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 LTD 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 115.7% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 18.9% in FY18 as against 23.6% in FY17.
  • Depreciation charges decreased by 70.1% and finance costs decreased by 90.3% YoY, respectively.
  • Other income declined by 48.3% YoY.
  • Net profit for the year declined by 75.3% YoY.
  • Net profit margins during the year declined from 56.5% in FY17 to 69.2% in FY18.

MARG LTD 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 94 49 -48.3%
Total Revenues Rs m 4,642 939 -79.8%
Gross profit Rs m 1,075 -169 -115.7%
Depreciation Rs m 783 234 -70.1%
Interest Rs m 2,949 285 -90.3%
Profit before tax Rs m -2,563 -639 -75.1%
Tax Rs m 62 10 -83.3%
Profit after tax Rs m -2,625 -649 -75.3%
Gross profit margin % 23.6 -18.9
Effective tax rate % -2.4 -1.6
Net profit margin % -56.5 -69.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MARG LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 36 billion as compared to Rs 45 billion in FY17, thereby witnessing an decrease of -19.4%.
  • Current assets fell 4% and stood at Rs 18 billion, while fixed assets fell 57% and stood at Rs 13 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 29%.

MARG LTD 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 36,314 -19.4
Long-term Debt Rs m 15,695 0 -100.0
Total Liabilities Rs m 50,443 35,865 -28.9
 
Current assets Rs m 19,308 18,489 -4.2
Fixed Assets Rs m 30,674 13,052 -57.4
Total Assets Rs m 50,443 35,865 -28.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MARG LTD Cash Flow Statement Analysis

  • MARG LTD'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 LTD 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 2,174 -1,071 -
Cash Flow from Investing Activities Rs m -552 -4 -
Cash Flow from Financing Activities Rs m -1,094 -19 -
Net Cash Flow Rs m 528 -1,093 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for MARG LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -17.0, an improvement from the EPS of Rs -68.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 12.5, stands at -1.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -0.1 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at -1.1 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 -68.9 -17.0
Diluted earnings per share Rs -68.9 -17.0
Price to Cash Flow x -0.3 -1.1
TTM P/E ratio x -1.9 -1.9
Price / Book Value ratio x 0.0 -0.1
Market Cap Rs m 477 477
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for MARG LTD

  • 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 6.4% during FY18, from 6.5% 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 -1.0% during FY18, from 0.6% 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 0.4 0.5
Debtors’ Days Days 261 1,444
Interest coverage x 0.1 -1.2
Debt to equity ratio x -1.6 0.0
Return on assets % 0.6 -1.0
Return on equity % 27.0 11.7
Return on capital employed % 6.5 6.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

MARG LTD Share Price Performance

Over the last one year, MARG LTD share price has moved up from Rs 12.5 to Rs 12.5, registering a gain of Rs 0.1 or around 0.4%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 1,837.0 (up 0.3%). Over the last one year it has moved down from 2,378.1 to 1,837.0, a loss of 541 points (down 22.8%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

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

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

  

Related Views on News

MARG LTD Announces Quarterly Results (3QFY19); Net Profit Down 493.5% (Quarterly Result Update)

Mar 5, 2019 | Updated on Mar 5, 2019

For the quarter ended December 2018, MARG LTD has posted a net profit of Rs 24 m (down 493.5% YoY). Sales on the other hand came in at Rs 32 m (down 72.1% YoY). Read on for a complete analysis of MARG LTD's quarterly results.

MARG LTD Announces Quarterly Results (2QFY19); Net Profit Down 2033.3% (Quarterly Result Update)

Nov 30, 2018 | Updated on Nov 30, 2018

For the quarter ended September 2018, MARG LTD has posted a net profit of Rs 70 m (down 2033.3% YoY). Sales on the other hand came in at Rs 57 m (down 59.3% YoY). Read on for a complete analysis of MARG LTD's quarterly results.

IRCON International IPO: Is This PSU Worth Betting On? (IPO)

Sep 17, 2018

Should you subscribe to the IPO of IRCON International Ltd?

More Views on News

Most Popular

Use My Secret to Increase Your Trading Profits Today

Dec 10, 2019

What to do after every trade.

A Simple, 7-Step Checklist for Your Trading Success

Dec 4, 2019

What we can learn from one of the greatest traders to have ever lived.

Blue Chips Are Passe. Get into these Stocks for Outstanding Gains in 2020(Profit Hunter)

Dec 5, 2019

This corner of the market could provide more returns than blue chips in 2020.

What Is the IPO Euphoria Signaling Us About the Markets?(The 5 Minute Wrapup)

Dec 2, 2019

2019 will be remembered as the year of great money-making IPOs...

Make the Most of the Smallcap Rebound with These Stocks(Profit Hunter)

Dec 3, 2019

Even amid a gloomy economic scenario, there are smallcaps that have grown earnings over last one and a half year and I believe these could be the strongest candidates for a smallcap rebound.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2020
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 MARG LTD

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

MARG LTD - ANSAL PROPERTIES COMPARISON

COMPARE MARG LTD WITH

MARKET STATS