OMAX AUTOS 2017-18 Annual Report Analysis

Sat, 31 Mar

OMAX AUTOS 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.

OMAX AUTOS Income Statement Analysis

• Operating income during the year rose 26.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.6% in FY18 as against 3.6% in FY17.
• Depreciation charges decreased by 6.5% and finance costs increased by 31.9% YoY, respectively.
• Other income grew by 9.9% YoY.
• Net profit for the year declined by 449.8% YoY.
• Net profit margins during the year grew from 0.2% in FY17 to 0.7% in FY18.

OMAX AUTOS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	9,078	11,492	26.6%
Other income	Rs m	103	113	9.9%
Total Revenues	Rs m	9,181	11,606	26.4%
Gross profit	Rs m	326	418	28.3%
Depreciation	Rs m	235	219	-6.5%
Interest	Rs m	232	307	31.9%
Profit before tax	Rs m	-38	6	-115.1%
Tax	Rs m	-16	-71	342.7%
Profit after tax	Rs m	-22	77	-449.8%
Gross profit margin	%	3.6	3.6
Effective tax rate	%	42.2	-1,241.2
Net profit margin	%	-0.2	0.7

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OMAX AUTOS Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 3 billion as compared to Rs 3 billion in FY17, thereby witnessing an decrease of -0.1%.
• Long-term debt stood at Rs 428 million as compared to Rs 402 million during FY17, a growth of 6.4%.
• Current assets rose 7% and stood at Rs 3 billion, while fixed assets fell 5% and stood at Rs 3 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 6 billion as against Rs 6 billion during FY17, thereby witnessing a growth of 1%.

OMAX AUTOS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	2,205	2,302	4.4
Current Liabilities	Rs m	3,035	3,032	-0.1
Long-term Debt	Rs m	402	428	6.4
Total Liabilities	Rs m	5,957	5,994	0.6
Current assets	Rs m	2,909	3,109	6.9
Fixed Assets	Rs m	3,048	2,885	-5.4
Total Assets	Rs m	5,957	5,994	0.6

OMAX AUTOS Cash Flow Statement Analysis

• OMAX AUTOS's cash flow from operating activities (CFO) during FY18 stood at Rs 684 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 170 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -492 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 362 million from the Rs 13 million net cash flows seen during FY17.

OMAX AUTOS 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	-214	684	-
Cash Flow from Investing Activities	Rs m	-225	170	-
Cash Flow from Financing Activities	Rs m	453	-492	-
Net Cash Flow	Rs m	13	362	2,621.6%

Current Valuations for OMAX AUTOS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.6, an improvement from the EPS of Rs -1.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 135.7, stands at 41.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 10.0 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	424.4	537.3
TTM Earnings per share	Rs	-1.0	3.6
Diluted earnings per share	Rs	-1.0	3.6
Price to Cash Flow	x	7.9	10.0
TTM P/E ratio	x	-111.5	41.5
Price / Book Value ratio	x	0.8	1.3
Market Cap	Rs m	1,718	2,973
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for OMAX AUTOS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY18, from 1.0x 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 1.0x during FY18, from 0.8x 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 3.3% during FY18, from -1.0% 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 improved and stood at 11.4% during FY18, from 7.5% 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 6.4% during FY18, from 3.5% 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	1.0	1.0
Debtors’ Days	Days	673	524
Interest coverage	x	0.8	1.0
Debt to equity ratio	x	0.2	0.2
Return on assets	%	3.5	6.4
Return on equity	%	-1.0	3.3
Return on capital employed	%	7.5	11.4

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

OMAX AUTOS Share Price Performance

Over the last one year, OMAX AUTOS share price has moved up from Rs 78.6 to Rs 135.7, registering a gain of Rs 57.1 or around 72.7%.

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

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

Read: Latest Annual Report Analysis of OMAX AUTOS