NITIN FIRE PROTECTION 2017-18 Annual Report Analysis

Sat, 31 Mar

NITIN FIRE PROTECTION 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.

NITIN FIRE PROTECTION Income Statement Analysis

• Operating income during the year fell 33.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 249.7% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 7.3% in FY18 as against 3.3% in FY17.
• Depreciation charges increased by 54.0% and finance costs increased by 21.8% YoY, respectively.
• Other income grew by 29.9% YoY.
• Net profit for the year grew by 359.8% YoY.
• Net profit margins during the year declined from 2.8% in FY17 to 19.3% in FY18.

NITIN FIRE PROTECTION Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	13,267	8,877	-33.1%
Other income	Rs m	43	55	29.9%
Total Revenues	Rs m	13,309	8,932	-32.9%
Gross profit	Rs m	432	-646	-249.7%
Depreciation	Rs m	247	380	54.0%
Interest	Rs m	603	735	21.8%
Profit before tax	Rs m	-376	-1,706	353.9%
Tax	Rs m	-4	5	-242.7%
Profit after tax	Rs m	-372	-1,711	359.8%
Gross profit margin	%	3.3	-7.3
Effective tax rate	%	1.0	-0.3
Net profit margin	%	-2.8	-19.3

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NITIN FIRE PROTECTION Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 10 billion as compared to Rs 8 billion in FY17, thereby witnessing an increase of 35.8%.
• Long-term debt down at Rs 247 million as compared to Rs 391 million during FY17, a fall of 36.8%.
• Current assets fell 6% and stood at Rs 9 billion, while fixed assets rose 42% and stood at Rs 5 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 14 billion as against Rs 13 billion during FY17, thereby witnessing a growth of 8%.

NITIN FIRE PROTECTION Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	5,060	3,442	-32.0
Current Liabilities	Rs m	7,528	10,223	35.8
Long-term Debt	Rs m	391	247	-36.8
Total Liabilities	Rs m	13,017	13,996	7.5
Current assets	Rs m	9,343	8,769	-6.1
Fixed Assets	Rs m	3,674	5,227	42.3
Total Assets	Rs m	13,017	13,996	7.5

NITIN FIRE PROTECTION Cash Flow Statement Analysis

• NITIN FIRE PROTECTION's cash flow from operating activities (CFO) during FY18 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion, an improvement of 316.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 4 billion, an improvement of 280% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 73 million from the Rs -79 million net cash flows seen during FY17.

NITIN FIRE PROTECTION 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	2,439	-1,590	-
Cash Flow from Investing Activities	Rs m	-481	-2,002	-
Cash Flow from Financing Activities	Rs m	-2,037	3,665	-
Net Cash Flow	Rs m	-79	73	-

Current Valuations for NITIN FIRE PROTECTION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.9, an decline from the EPS of Rs -1.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4.2, stands at -0.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at -3.3 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	45.4	30.4
TTM Earnings per share	Rs	-1.3	-5.9
Diluted earnings per share	Rs	-1.3	-5.9
Price to Cash Flow	x	-52.6	-3.3
TTM P/E ratio	x	811.7	-0.6
Price / Book Value ratio	x	1.8	1.3
Market Cap	Rs m	8,856	4,384
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NITIN FIRE PROTECTION

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY18, from 1.2x 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 -1.3x during FY18, from 0.4x 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 -49.7% during FY18, from -7.4% 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 -26.3% during FY18, from 4.2% 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 -7.0% during FY18, from 1.8% 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	1.2	0.9
Debtors’ Days	Days	1,161	2,180
Interest coverage	x	0.4	-1.3
Debt to equity ratio	x	0.1	0.1
Return on assets	%	1.8	-7.0
Return on equity	%	-7.4	-49.7
Return on capital employed	%	4.2	-26.3

To see how NITIN FIRE PROTECTION has performed over the last 5 years, please visit here.

NITIN FIRE PROTECTION Share Price Performance

Over the last one year, NITIN FIRE PROTECTION share price has moved down from Rs 22.6 to Rs 4.2, registering a loss of Rs 18.4 or around 81.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 0.0 to 18,476.7, a gain of 18,477 points (up 0.0%).

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

(To know more, check out historical annual results for NITIN FIRE PROTECTION and quarterly results for NITIN FIRE PROTECTION)