MUKAND 2017-18 Annual Report Analysis

Sat, 31 Mar

MUKAND 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.

MUKAND Income Statement Analysis

• Operating income during the year rose 40.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 340.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 44.1% in FY18 as against 14.0% in FY17.
• Depreciation charges increased by 121.4% and finance costs increased by 61.0% YoY, respectively.
• Other income grew by 12.9% YoY.
• Net profit for the year declined by 3295.0% YoY.
• Net profit margins during the year grew from 1.1% in FY17 to 24.2% in FY18.

MUKAND Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	23,842	33,436	40.2%
Other income	Rs m	586	662	12.9%
Total Revenues	Rs m	24,428	34,098	39.6%
Gross profit	Rs m	3,343	14,740	340.9%
Depreciation	Rs m	715	1,583	121.4%
Interest	Rs m	2,936	4,726	61.0%
Profit before tax	Rs m	278	9,093	3,169.8%
Tax	Rs m	532	991	86.3%
Profit after tax	Rs m	-254	8,103	-3,295.0%
Gross profit margin	%	14.0	44.1
Effective tax rate	%	191.2	10.9
Net profit margin	%	-1.1	24.2

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MUKAND Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 25 billion as compared to Rs 24 billion in FY17, thereby witnessing an increase of 4.6%.
• Long-term debt down at Rs 8 billion as compared to Rs 17 billion during FY17, a fall of 54.4%.
• Current assets fell 27% and stood at Rs 24 billion, while fixed assets rose 97% and stood at Rs 20 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 45 billion as against Rs 44 billion during FY17, thereby witnessing a growth of 2%.

MUKAND Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	3,142	10,798	243.7
Current Liabilities	Rs m	24,044	25,144	4.6
Long-term Debt	Rs m	17,093	7,791	-54.4
Total Liabilities	Rs m	43,796	44,580	1.8
Current assets	Rs m	33,550	24,390	-27.3
Fixed Assets	Rs m	10,245	20,190	97.1
Total Assets	Rs m	43,796	44,580	1.8

MUKAND Cash Flow Statement Analysis

• MUKAND's cash flow from operating activities (CFO) during FY18 stood at Rs 9 billion, an improvement of 180.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 876 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -10 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -51 million from the Rs -4 million net cash flows seen during FY17.

MUKAND 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	3,188	8,939	180.4%
Cash Flow from Investing Activities	Rs m	-362	876	-
Cash Flow from Financing Activities	Rs m	-2,830	-9,866	-
Net Cash Flow	Rs m	-4	-51	-

Current Valuations for MUKAND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 57.3, an improvement from the EPS of Rs -1.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 58.6, stands at 16.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 1.2 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	168.6	236.4
TTM Earnings per share	Rs	-1.8	57.3
Diluted earnings per share	Rs	-1.8	57.3
Price to Cash Flow	x	26.0	1.2
TTM P/E ratio	x	-28.7	16.5
Price / Book Value ratio	x	2.7	1.1
Market Cap	Rs m	8,431	11,783
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MUKAND

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY18, from 1.4x 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 improved and stood at 2.9x during FY18, from 1.1x 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 improved and stood at 75.0% during FY18, from -8.1% 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 improved and stood at 74.3% during FY18, from 15.9% 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 improved and stood at 28.8% during FY18, from 6.1% 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	1.4	1.0
Debtors’ Days	Days	16	3
Interest coverage	x	1.1	2.9
Debt to equity ratio	x	5.4	0.7
Return on assets	%	6.1	28.8
Return on equity	%	-8.1	75.0
Return on capital employed	%	15.9	74.3

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

MUKAND Share Price Performance

Over the last one year, MUKAND share price has moved down from Rs 84.9 to Rs 58.6, registering a loss of Rs 26.4 or around 31.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 13,322.0 (down 2.0%). Over the last one year it has moved up from 11,804.5 to 13,322.0, a gain of 1,518 points (up 12.9%).

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

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