ONMOBILE GLOBAL 2017-18 Annual Report Analysis

Sat, 31 Mar

ONMOBILE GLOBAL 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.

ONMOBILE GLOBAL Income Statement Analysis

• Operating income during the year fell 11.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 23.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.9% in FY18 as against 11.5% in FY17.
• Depreciation charges decreased by 13.6% and finance costs decreased by 39.0% YoY, respectively.
• Other income grew by 14.3% YoY.
• Net profit for the year declined by 19.5% YoY.
• Net profit margins during the year declined from 2.0% in FY17 to 1.8% in FY18.

ONMOBILE GLOBAL Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	7,202	6,356	-11.8%
Other income	Rs m	119	136	14.3%
Total Revenues	Rs m	7,321	6,492	-11.3%
Gross profit	Rs m	828	630	-23.9%
Depreciation	Rs m	555	479	-13.6%
Interest	Rs m	16	10	-39.0%
Profit before tax	Rs m	376	277	-26.4%
Tax	Rs m	236	164	-30.5%
Profit after tax	Rs m	141	113	-19.5%
Gross profit margin	%	11.5	9.9
Effective tax rate	%	62.6	59.1
Net profit margin	%	2.0	1.8

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ONMOBILE GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 2 billion as compared to Rs 3 billion in FY17, thereby witnessing an decrease of -14.0%.
• Current assets fell 5% and stood at Rs 6 billion, while fixed assets fell 3% and stood at Rs 2 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 8 billion as against Rs 8 billion during FY17, thereby witnessing a fall of 4%.

ONMOBILE GLOBAL Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	5,530	5,639	2.0
Current Liabilities	Rs m	2,723	2,341	-14.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	8,033	7,704	-4.1
Current assets	Rs m	5,973	5,700	-4.6
Fixed Assets	Rs m	2,060	2,004	-2.7
Total Assets	Rs m	8,033	7,704	-4.1

ONMOBILE GLOBAL Cash Flow Statement Analysis

• ONMOBILE GLOBAL's cash flow from operating activities (CFO) during FY18 stood at Rs 347 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -551 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -145 million, an improvement of 82% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -321 million from the Rs 2 billion net cash flows seen during FY17.

ONMOBILE GLOBAL 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	902	347	-61.5%
Cash Flow from Investing Activities	Rs m	124	-551	-
Cash Flow from Financing Activities	Rs m	-811	-145	-
Net Cash Flow	Rs m	2,278	-321	-

Current Valuations for ONMOBILE GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.1, an decline from the EPS of Rs 1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 43.4, stands at 38.3 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 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 12.0 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	69.0	60.2
TTM Earnings per share	Rs	1.4	1.1
Diluted earnings per share	Rs	1.3	1.1
Price to Cash Flow	x	13.7	12.0
TTM P/E ratio	x	67.6	38.3
Price / Book Value ratio	x	1.9	1.3
Market Cap	Rs m	10,628	7,105
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for ONMOBILE GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY18, from 2.2x 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 improved and stood at 29.1x during FY18, from 24.2x 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 2.0% during FY18, from 2.5% 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 5.1% during FY18, from 7.1% 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 1.6% 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	2.2	2.4
Debtors’ Days	Days	85	98
Interest coverage	x	24.2	29.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.0	1.6
Return on equity	%	2.5	2.0
Return on capital employed	%	7.1	5.1

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

ONMOBILE GLOBAL Share Price Performance

Over the last one year, ONMOBILE GLOBAL share price has moved down from Rs 90.1 to Rs 43.4, registering a loss of Rs 46.7 or around 51.8%.

Meanwhile, the S&P BSE IT Index is trading at Rs 12,100.6 (down 0.3%). Over the last one year it has moved up from 10,365.5 to 12,100.6, a gain of 1,735 points (up 16.7%).

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

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

Read: Latest Annual Report Analysis of ONMOBILE GLOBAL