NAVA BHARAT VENTURES 2017-18 Annual Report Analysis

Sat, 31 Mar

NAVA BHARAT VENTURES 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.

NAVA BHARAT VENTURES Income Statement Analysis

• Operating income during the year rose 69.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 214.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 33.8% in FY18 as against 18.2% in FY17.
• Depreciation charges increased by 152.7% and finance costs increased by 241.3% YoY, respectively.
• Other income declined by 0.0% YoY.
• Net profit for the year grew by 199.4% YoY.
• Net profit margins during the year grew from 6.7% in FY17 to 11.8% in FY18.

NAVA BHARAT VENTURES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	13,867	23,478	69.3%
Other income	Rs m	694	694	0.0%
Total Revenues	Rs m	14,561	24,172	66.0%
Gross profit	Rs m	2,521	7,930	214.5%
Depreciation	Rs m	904	2,284	152.7%
Interest	Rs m	722	2,463	241.3%
Profit before tax	Rs m	1,589	3,876	143.9%
Tax	Rs m	661	1,096	65.9%
Profit after tax	Rs m	929	2,780	199.4%
Gross profit margin	%	18.2	33.8
Effective tax rate	%	41.6	28.3
Net profit margin	%	6.7	11.8

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NAVA BHARAT VENTURES Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 11 billion as compared to Rs 12 billion in FY17, thereby witnessing an decrease of -0.9%.
• Long-term debt down at Rs 33 billion as compared to Rs 36 billion during FY17, a fall of 7.1%.
• Current assets fell 8% and stood at Rs 18 billion, while fixed assets fell 0% and stood at Rs 62 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 81 billion as against Rs 82 billion during FY17, thereby witnessing a fall of 2%.

NAVA BHARAT VENTURES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	31,622	33,847	7.0
Current Liabilities	Rs m	11,568	11,468	-0.9
Long-term Debt	Rs m	35,764	33,239	-7.1
Total Liabilities	Rs m	82,347	80,659	-2.1
Current assets	Rs m	19,938	18,429	-7.6
Fixed Assets	Rs m	62,410	62,230	-0.3
Total Assets	Rs m	82,347	80,659	-2.1

NAVA BHARAT VENTURES Cash Flow Statement Analysis

• NAVA BHARAT VENTURES's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 416.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -8 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -3 billion from the Rs -30 million net cash flows seen during FY17.

NAVA BHARAT VENTURES 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	389	2,008	416.3%
Cash Flow from Investing Activities	Rs m	-6,781	2,661	-
Cash Flow from Financing Activities	Rs m	6,476	-8,131	-
Net Cash Flow	Rs m	-30	-3,449	-

Current Valuations for NAVA BHARAT VENTURES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.6, an improvement from the EPS of Rs 5.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 134.6, stands at 7.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 5.3 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	77.7	131.5
TTM Earnings per share	Rs	5.2	15.6
Diluted earnings per share	Rs	6.4	19.2
Price to Cash Flow	x	9.9	5.3
TTM P/E ratio	x	17.0	7.0
Price / Book Value ratio	x	1.1	0.8
Market Cap	Rs m	33,269	26,983
Dividends per share (Unadj.)	Rs	1.0	1.5

Ratio Analysis for NAVA BHARAT VENTURES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY18, from 1.7x 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 2.6x during FY18, from 3.2x 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 8.2% during FY18, from 2.9% 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 9.4% during FY18, from 3.4% 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 improved and stood at 6.5% during FY18, from 2.0% 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	1.7	1.6
Debtors’ Days	Days	438	1,128
Interest coverage	x	3.2	2.6
Debt to equity ratio	x	1.1	1.0
Return on assets	%	2.0	6.5
Return on equity	%	2.9	8.2
Return on capital employed	%	3.4	9.4

To see how NAVA BHARAT VENTURES has performed over the last 5 years, please visit here.

NAVA BHARAT VENTURES Share Price Performance

Over the last one year, NAVA BHARAT VENTURES share price has moved up from Rs 125.6 to Rs 134.6, registering a gain of Rs 9.0 or around 7.1%.

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

(To know more, check out historical annual results for NAVA BHARAT VENTURES and quarterly results for NAVA BHARAT VENTURES)

Read: Latest Annual Report Analysis of NAVA