OMAXE 2017-18 Annual Report Analysis

Sat, 31 Mar

OMAXE 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.

OMAXE Income Statement Analysis

• Operating income during the year rose 13.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.1% in FY18 as against 17.4% in FY17.
• Depreciation charges decreased by 1.5% and finance costs increased by 9.6% YoY, respectively.
• Other income declined by 0.4% YoY.
• Net profit for the year declined by 19.1% YoY.
• Net profit margins during the year declined from 6.5% in FY17 to 4.6% in FY18.

OMAXE Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	16,268	18,391	13.1%
Other income	Rs m	589	587	-0.4%
Total Revenues	Rs m	16,857	18,978	12.6%
Gross profit	Rs m	2,836	2,601	-8.3%
Depreciation	Rs m	89	88	-1.5%
Interest	Rs m	1,545	1,693	9.6%
Profit before tax	Rs m	1,791	1,407	-21.5%
Tax	Rs m	739	555	-24.8%
Profit after tax	Rs m	1,053	852	-19.1%
Gross profit margin	%	17.4	14.1
Effective tax rate	%	41.2	39.5
Net profit margin	%	6.5	4.6

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OMAXE Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 47 billion as compared to Rs 46 billion in FY17, thereby witnessing an increase of 0.9%.
• Long-term debt stood at Rs 11 billion as compared to Rs 8 billion during FY17, a growth of 40.2%.
• Current assets fell 0% and stood at Rs 73 billion, while fixed assets fell 11% and stood at Rs 8 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%.

OMAXE Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	21,186	21,969	3.7
Current Liabilities	Rs m	46,206	46,637	0.9
Long-term Debt	Rs m	7,534	10,560	40.2
Total Liabilities	Rs m	81,946	80,641	-1.6
Current assets	Rs m	72,834	72,501	-0.5
Fixed Assets	Rs m	9,112	8,141	-10.7
Total Assets	Rs m	81,946	80,641	-1.6

OMAXE Cash Flow Statement Analysis

• OMAXE's cash flow from operating activities (CFO) during FY18 stood at Rs 191 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 207 million, an improvement of 3.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -355 million, an improvement of 80% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 43 million from the Rs -324 million net cash flows seen during FY17.

OMAXE 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	1,209	191	-84.2%
Cash Flow from Investing Activities	Rs m	199	207	3.9%
Cash Flow from Financing Activities	Rs m	-1,731	-355	-
Net Cash Flow	Rs m	-324	43	-

Current Valuations for OMAXE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.7, an decline from the EPS of Rs 5.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 220.7, stands at 39.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 39.3 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	88.9	100.6
TTM Earnings per share	Rs	5.8	4.7
Diluted earnings per share	Rs	5.8	4.7
Price to Cash Flow	x	27.0	39.3
TTM P/E ratio	x	30.3	39.7
Price / Book Value ratio	x	1.4	1.7
Market Cap	Rs m	29,278	36,918
Dividends per share (Unadj.)	Rs	0.7	0.7

Ratio Analysis for OMAXE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY18, from 1.6x 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 1.8x during FY18, from 2.2x 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 declined and down at 3.9% during FY18, from 5.0% 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 9.5% during FY18, from 11.6% 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 3.2% during FY18, from 3.2% 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	1.6	1.6
Debtors’ Days	Days	235	16
Interest coverage	x	2.2	1.8
Debt to equity ratio	x	0.4	0.5
Return on assets	%	3.2	3.2
Return on equity	%	5.0	3.9
Return on capital employed	%	11.6	9.5

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

OMAXE Share Price Performance

Over the last one year, OMAXE share price has moved up from Rs 168.6 to Rs 220.7, registering a gain of Rs 52.2 or around 30.9%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,229.9 (down 1.1%). Over the last one year it has moved up from 1,600.0 to 2,229.9, a gain of 630 points (up 39.4%).

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

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

Read: Latest Annual Report Analysis of OMAXE