MIRZA INTERNATIONAL 2017-18 Annual Report Analysis

Mon, 25 Mar

MIRZA INTERNATIONAL 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.

MIRZA INTERNATIONAL Income Statement Analysis

• Operating income during the year rose 3.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.9% in FY18 as against 17.2% in FY17.
• Depreciation charges increased by 8.8% and finance costs decreased by 3.7% YoY, respectively.
• Other income declined by 50.6% YoY.
• Net profit for the year grew by 9.3% YoY.
• Net profit margins during the year grew from 7.7% in FY17 to 8.1% in FY18.

MIRZA INTERNATIONAL Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	9,357	9,721	3.9%
Other income	Rs m	8	4	-50.6%
Total Revenues	Rs m	9,365	9,725	3.8%
Gross profit	Rs m	1,611	1,740	8.0%
Depreciation	Rs m	291	316	8.8%
Interest	Rs m	259	250	-3.7%
Profit before tax	Rs m	1,069	1,178	10.2%
Tax	Rs m	352	394	12.0%
Profit after tax	Rs m	717	784	9.3%
Gross profit margin	%	17.2	17.9
Effective tax rate	%	32.9	33.5
Net profit margin	%	7.7	8.1

MIRZA INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 4 billion as compared to Rs 2 billion in FY17, thereby witnessing an increase of 74.6%.
• Long-term debt stood at Rs 160 million as compared to Rs 148 million during FY17, a growth of 8.2%.
• Current assets rose 51% and stood at Rs 6 billion, while fixed assets rose 8% and stood at Rs 4 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 10 billion as against Rs 8 billion during FY17, thereby witnessing a growth of 31%.

MIRZA INTERNATIONAL Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	5,020	5,718	13.9
Current Liabilities	Rs m	2,147	3,748	74.6
Long-term Debt	Rs m	148	160	8.2
Total Liabilities	Rs m	7,643	9,990	30.7
Current assets	Rs m	4,015	6,064	51.0
Fixed Assets	Rs m	3,535	3,816	8.0
Total Assets	Rs m	7,643	9,990	30.7

MIRZA INTERNATIONAL Cash Flow Statement Analysis

• MIRZA INTERNATIONAL's cash flow from operating activities (CFO) during FY18 stood at Rs -238 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -593 million, an improvement of 63.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 895 million, an improvement of 209% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 63 million from the Rs -49 million net cash flows seen during FY17.

MIRZA INTERNATIONAL 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	1,136	-238	-
Cash Flow from Investing Activities	Rs m	-363	-593	-
Cash Flow from Financing Activities	Rs m	-822	895	-
Net Cash Flow	Rs m	-49	63	-

Current Valuations for MIRZA INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.2, an improvement from the EPS of Rs 6.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 54.6, stands at 9.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 5.4 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	86.4	89.8
TTM Earnings per share	Rs	6.6	7.2
Diluted earnings per share	Rs	6.6	7.2
Price to Cash Flow	x	5.9	5.4
TTM P/E ratio	x	9.9	9.9
Price / Book Value ratio	x	1.9	2.5
Market Cap	Rs m	5,908	5,908
Dividends per share (Unadj.)	Rs	0.9	0.9

Ratio Analysis for MIRZA INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY18, from 1.9x 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 5.7x during FY18, from 5.1x 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 13.7% during FY18, from 14.3% 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 24.3% during FY18, from 25.7% 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 10.3% during FY18, from 12.8% 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	1.9	1.6
Debtors’ Days	Days	26	50
Interest coverage	x	5.1	5.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.8	10.3
Return on equity	%	14.3	13.7
Return on capital employed	%	25.7	24.3

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

MIRZA INTERNATIONAL Share Price Performance

Over the last one year, MIRZA INTERNATIONAL share price has moved up from Rs 108.6 to Rs 54.6, registering a loss of Rs 54.0 or around 49.7%.

Overall, the S&P BSE SENSEX is up 14.7% over the year.

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