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MT EDUCARE 2017-18 Annual Report Analysis

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MT EDUCARE 2017-18 Annual Report Analysis
Thu, 17 Jan

MT EDUCARE 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.

MT EDUCARE Income Statement Analysis

  • Operating income during the year fell 26.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 663.1% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 77.2% in FY18 as against 10.0% in FY17.
  • Depreciation charges increased by 13.4% and finance costs increased by 60.1% YoY, respectively.
  • Other income grew by 8.0% YoY.
  • Net profit for the year declined by 2357.2% YoY.
  • Net profit margins during the year declined from 1.8% in FY17 to 55.6% in FY18.

MT EDUCARE Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 3,046 2,226 -26.9%
Other income Rs m 134 145 8.0%
Total Revenues Rs m 3,180 2,371 -25.4%
Gross profit Rs m 305 -1,719 -663.1%
Depreciation Rs m 188 214 13.4%
Interest Rs m 144 230 60.1%
Profit before tax Rs m 108 -2,017 -1,976.3%
Tax Rs m 49 -699 -1,523.2%
Profit after tax Rs m 58 -1,318 -2,357.2%
Gross profit margin % 10.0 -77.2
Effective tax rate % 45.7 34.6
Net profit margin % 1.8 -55.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MT EDUCARE Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 1 billion as compared to Rs 2 billion in FY17, thereby witnessing an decrease of -37.6%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 201 million during FY17, a growth of 545.7%.
  • Current assets rose 54% and stood at Rs 3 billion, while fixed assets fell 26% and stood at Rs 330 million in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 5 billion as against Rs 4 billion during FY17, thereby witnessing a growth of 26%.

MT EDUCARE Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 1,418 2,049 44.5
 
Current Liabilities Rs m 2,085 1,301 -37.6
Long-term Debt Rs m 201 1,300 545.7
Total Liabilities Rs m 3,752 4,740 26.3
 
Current assets Rs m 1,708 2,632 54.1
Fixed Assets Rs m 445 330 -25.8
Total Assets Rs m 3,752 4,740 26.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



MT EDUCARE Cash Flow Statement Analysis

  • MT EDUCARE's cash flow from operating activities (CFO) during FY18 stood at Rs -3 billion, an improvement of 238.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 536 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 2 billion, an improvement of 120% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -140 million from the Rs 52 million net cash flows seen during FY17.

MT EDUCARE 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 -793 -2,687 -
Cash Flow from Investing Activities Rs m -70 536 -
Cash Flow from Financing Activities Rs m 915 2,012 119.8%
Net Cash Flow Rs m 52 -140 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for MT EDUCARE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -18.4, an decline from the EPS of Rs 1.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 63.2, stands at 5.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 2.4 times.
  • The company's price to cash flow (P/CF) ratio stood at -2.3 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 76.5 31.0
TTM Earnings per share Rs 1.5 -18.4
Diluted earnings per share Rs 1.5 -33.1
Price to Cash Flow x 10.2 -2.3
TTM P/E ratio x 5.3 5.3
Price / Book Value ratio x 3.9 2.6
Market Cap Rs m 2,517 2,515
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 MT EDUCARE

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.0x during FY18, from 0.8x 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 -7.8x during FY18, from 1.7x 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 -64.3% during FY18, from 4.1% 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 -53.4% during FY18, from 15.5% 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 -23.0% during FY18, from 5.4% 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 0.8 2.0
Debtors’ Days Days 138 23
Interest coverage x 1.7 -7.8
Debt to equity ratio x 0.1 0.6
Return on assets % 5.4 -23.0
Return on equity % 4.1 -64.3
Return on capital employed % 15.5 -53.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

MT EDUCARE Share Price Performance

Over the last one year, MT EDUCARE share price has moved up from Rs 57.1 to Rs 63.2, registering a gain of Rs 6.1 or around 10.7%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,320.9 (up 0.2%). Over the last one year it has moved up from 6,780.3 to 7,320.9, a gain of 541 points (up 8.0%).

Overall, the S&P BSE SENSEX is up 4.7% over the year.

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

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Related Views on News

MT EDUCARE Announces Quarterly Results (4QFY19); Net Profit Up 110.6% (Quarterly Result Update)

May 15, 2019 | Updated on May 15, 2019

For the quarter ended March 2019, MT EDUCARE has posted a net profit of Rs 48 m (up 110.6% YoY). Sales on the other hand came in at Rs 503 m (up 23.4% YoY). Read on for a complete analysis of MT EDUCARE's quarterly results.

MT EDUCARE Announces Quarterly Results (3QFY19); Net Profit Down 97.4% (Quarterly Result Update)

Jan 21, 2019 | Updated on Jan 21, 2019

For the quarter ended December 2018, MT EDUCARE has posted a net profit of Rs 23 m (down 97.4% YoY). Sales on the other hand came in at Rs 497 m (up 20.3% YoY). Read on for a complete analysis of MT EDUCARE's quarterly results.

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