PAGE INDUSTRIES 2017-18 Annual Report Analysis

Sat, 31 Mar

PAGE INDUSTRIES 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.

PAGE INDUSTRIES Income Statement Analysis

• Operating income during the year rose 19.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.2% in FY18 as against 19.5% in FY17.
• Depreciation charges increased by 13.2% and finance costs decreased by 9.2% YoY, respectively.
• Other income declined by 11.5% YoY.
• Net profit for the year grew by 30.3% YoY.
• Net profit margins during the year grew from 12.5% in FY17 to 13.6% in FY18.

PAGE INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	21,266	25,507	19.9%
Other income	Rs m	243	216	-11.5%
Total Revenues	Rs m	21,509	25,723	19.6%
Gross profit	Rs m	4,147	5,416	30.6%
Depreciation	Rs m	247	280	13.2%
Interest	Rs m	195	177	-9.2%
Profit before tax	Rs m	3,948	5,175	31.1%
Tax	Rs m	1,285	1,705	32.7%
Profit after tax	Rs m	2,663	3,470	30.3%
Gross profit margin	%	19.5	21.2
Effective tax rate	%	32.6	33.0
Net profit margin	%	12.5	13.6

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PAGE INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 5 billion as compared to Rs 4 billion in FY17, thereby witnessing an increase of 19.4%.
• Long-term debt down at Rs 326 million as compared to Rs 398 million during FY17, a fall of 18.0%.
• Current assets rose 27% and stood at Rs 11 billion, while fixed assets rose 11% and stood at Rs 4 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 14 billion as against Rs 12 billion during FY17, thereby witnessing a growth of 22%.

PAGE INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	6,658	8,473	27.3
Current Liabilities	Rs m	4,258	5,084	19.4
Long-term Debt	Rs m	398	326	-18.0
Total Liabilities	Rs m	11,541	14,124	22.4
Current assets	Rs m	8,332	10,550	26.6
Fixed Assets	Rs m	3,209	3,574	11.4
Total Assets	Rs m	11,541	14,124	22.4

PAGE INDUSTRIES Cash Flow Statement Analysis

• PAGE INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion, an improvement of 65.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion, an improvement of 121.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 268 million from the Rs 119 million net cash flows seen during FY17.

PAGE INDUSTRIES 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	2,736	4,528	65.5%
Cash Flow from Investing Activities	Rs m	-1,076	-2,381	-
Cash Flow from Financing Activities	Rs m	-1,541	-1,878	-
Net Cash Flow	Rs m	119	268	124.8%

Current Valuations for PAGE INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 311.2, an improvement from the EPS of Rs 238.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 22,684.7, stands at 72.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 29.9 times, while the price to sales ratio stands at 9.9 times.
• The company's price to cash flow (P/CF) ratio stood at 58.6 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	1,907.3	2,287.6
TTM Earnings per share	Rs	238.8	311.2
Diluted earnings per share	Rs	238.7	311.1
Price to Cash Flow	x	56.1	58.6
TTM P/E ratio	x	61.3	72.9
Price / Book Value ratio	x	24.4	26.0
Market Cap	Rs m	162,445	219,894
Dividends per share (Unadj.)	Rs	97.0	96.0

Ratio Analysis for PAGE INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY18, from 2.0x 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 30.2x during FY18, from 21.3x 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 41.0% during FY18, from 40.0% 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 60.8% during FY18, from 58.7% 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 25.8% during FY18, from 24.8% 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	2.0	2.1
Debtors’ Days	Days	19	21
Interest coverage	x	21.3	30.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	24.8	25.8
Return on equity	%	40.0	41.0
Return on capital employed	%	58.7	60.8

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

PAGE INDUSTRIES Share Price Performance

Over the last one year, PAGE INDUSTRIES share price has moved up from Rs 14,639.6 to Rs 22,684.7, registering a gain of Rs 8,045.1 or around 55.0%.

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

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

Read: Latest Annual Report Analysis of PAGE INDUSTRIES