PENINSULA LAND 2017-18 Annual Report Analysis

Sat, 31 Mar

PENINSULA LAND 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.

PENINSULA LAND Income Statement Analysis

• Operating income during the year rose 84.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 210.3% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 22.6% in FY18 as against 37.8% in FY17.
• Depreciation charges decreased by 6.0% and finance costs decreased by 1.4% YoY, respectively.
• Other income declined by 52.8% YoY.
• Net profit for the year grew by 106.4% YoY.
• Net profit margins during the year declined from 81.4% in FY17 to 91.1% in FY18.

PENINSULA LAND Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	2,697	4,976	84.5%
Other income	Rs m	1,206	569	-52.8%
Total Revenues	Rs m	3,904	5,545	42.0%
Gross profit	Rs m	1,019	-1,123	-210.3%
Depreciation	Rs m	50	47	-6.0%
Interest	Rs m	3,947	3,893	-1.4%
Profit before tax	Rs m	-1,771	-4,494	153.7%
Tax	Rs m	425	38	-91.0%
Profit after tax	Rs m	-2,197	-4,533	106.4%
Gross profit margin	%	37.8	-22.6
Effective tax rate	%	-24.0	-0.8
Net profit margin	%	-81.4	-91.1

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PENINSULA LAND Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 19 billion as compared to Rs 14 billion in FY17, thereby witnessing an increase of 40.2%.
• Long-term debt stood at Rs 18 billion as compared to Rs 14 billion during FY17, a growth of 24.8%.
• Current assets rose 21% and stood at Rs 40 billion, while fixed assets fell 18% and stood at Rs 10 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 49 billion as against Rs 45 billion during FY17, thereby witnessing a growth of 11%.

PENINSULA LAND Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	15,098	10,492	-30.5
Current Liabilities	Rs m	13,602	19,065	40.2
Long-term Debt	Rs m	14,296	17,838	24.8
Total Liabilities	Rs m	44,579	49,391	10.8
Current assets	Rs m	32,729	39,648	21.1
Fixed Assets	Rs m	11,850	9,743	-17.8
Total Assets	Rs m	44,579	49,391	10.8

PENINSULA LAND Cash Flow Statement Analysis

• PENINSULA LAND's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 35 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -292 million from the Rs 444 million net cash flows seen during FY17.

PENINSULA LAND 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	-1,777	3,429	-
Cash Flow from Investing Activities	Rs m	1,842	35	-98.1%
Cash Flow from Financing Activities	Rs m	378	-3,896	-
Net Cash Flow	Rs m	444	-292	-

Current Valuations for PENINSULA LAND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -16.2, an decline from the EPS of Rs -7.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 20.3, stands at -1.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at -1.9 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	9.7	17.8
TTM Earnings per share	Rs	-7.9	-16.2
Diluted earnings per share	Rs	-7.9	-16.2
Price to Cash Flow	x	-2.4	-1.9
TTM P/E ratio	x	-3.7	-1.7
Price / Book Value ratio	x	0.3	0.8
Market Cap	Rs m	5,221	8,544
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PENINSULA LAND

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY18, from 2.4x 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 -0.2x during FY18, from 0.6x 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 -43.2% during FY18, from -14.5% 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 -2.1% 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 -1.3% during FY18, from 3.9% 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	2.4	2.1
Debtors’ Days	Days	7	8
Interest coverage	x	0.6	-0.2
Debt to equity ratio	x	0.9	1.7
Return on assets	%	3.9	-1.3
Return on equity	%	-14.5	-43.2
Return on capital employed	%	7.4	-2.1

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

PENINSULA LAND Share Price Performance

Over the last one year, PENINSULA LAND share price has moved up from Rs 18.8 to Rs 20.3, registering a gain of Rs 1.6 or around 8.3%.

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 1,600.0 to 2,229.9, a gain of 630 points (up 39.4%).

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

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

Read: Latest Annual Report Analysis of PENINSULA LAND