MRPL 2017-18 Annual Report Analysis

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MRPL 2017-18 Annual Report Analysis
Tue, 14 Aug

MRPL 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.

MRPL Income Statement Analysis

  • Operating income during the year rose 12.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 9.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.2% in FY18 as against 11.4% in FY17.
  • Depreciation charges and finance costs decreased by 1.8% YoY and 5.5% YoY, respectively.
  • Other income declined by 34.6% YoY.
  • Net profit for the year declined by 46.1% YoY.
  • Net profit margins during the year declined from 7.5% in FY17 to 3.6% in FY18.

MRPL Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 437,665 490,550 12.1%
Other income Rs m 4,189 2,739 -34.6%
Total Revenues Rs m 441,854 493,289 11.6%
Gross profit Rs m 49,831 45,020 -9.7%
Depreciation Rs m 9,841 9,661 -1.8%
Interest Rs m 9,659 9,127 -5.5%
Profit before tax Rs m 34,519 28,972 -16.1%
Tax Rs m 17,606 10,978 -37.6%
Profit after tax Rs m 32,932 17,736 -46.1%
Gross profit margin % 11.4 9.2
Effective tax rate % 51.0 37.9
Net profit margin % 7.5 3.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MRPL Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 166 billion as compared to Rs 143 billion in FY17, thereby witnessing an increase of 15.9%.
  • Long-term debt down at Rs 45 billion as compared to Rs 86 billion during FY17, a fall of 47.9%.
  • Current assets fell 10% and stood at Rs 90 billion, while fixed assets rose 0% and stood at Rs 209 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 320 billion as against Rs 328 billion during FY17, thereby witnessing a fall of 3%.

MRPL Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 95,022 102,334 7.7
 
Current Liabilities Rs m 143,075 165,854 15.9
Long-term Debt Rs m 85,910 44,787 -47.9
Total Liabilities Rs m 328,397 319,506 -2.7
 
Current assets Rs m 100,432 89,954 -10.4
Fixed Assets Rs m 208,383 208,988 0.3
Total Assets Rs m 328,397 319,506 -2.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MRPL Cash Flow Statement Analysis

  • MRPL's cash flow from operating activities (CFO) during FY18 stood at Rs 40 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion, an improvement of 269.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -28 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 2 billion from the Rs -11 billion net cash flows seen during FY17.

MRPL 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 -11,083 39,719 -
Cash Flow from Investing Activities Rs m -2,654 -9,814 -
Cash Flow from Financing Activities Rs m 2,645 -27,963 -
Net Cash Flow Rs m -11,092 1,942 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for MRPL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.1, an decline from the EPS of Rs 18.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 81.0, stands at 6.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.2 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 249.7 279.9
TTM Earnings per share Rs 18.8 10.1
Diluted earnings per share Rs 18.8 10.1
Price to Cash Flow x 3.3 5.2
TTM P/E ratio x 6.0 6.0
Price / Book Value ratio x 1.7 2.2
Market Cap Rs m 141,961 141,961
Dividends per share (Unadj.) Rs 6.0 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for MRPL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.5x during FY18, from 0.7x 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 4.2x during FY18, from 4.6x 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 17.3% during FY18, from 34.7% 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 25.7% during FY18, from 33.3% 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 13.0% 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 0.7 0.5
Debtors’ Days Days 22 19
Interest coverage x 4.6 4.2
Debt to equity ratio x 0.9 0.4
Return on assets % 13.0 8.4
Return on equity % 34.7 17.3
Return on capital employed % 33.3 25.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

MRPL Share Price Performance

Over the last one year, MRPL share price has moved up from Rs 121.3 to Rs 81.0, registering a loss of Rs 40.3 or around 33.2%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,861.3 (up 0.4%). Over the last one year it has moved up from 14,564.2 to 14,861.3, a gain of 297 points (up 2.0%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

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

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