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PATEL ENGINEERING 2017-18 Annual Report Analysis
Sat, 31 Mar

PATEL ENGINEERING 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.

PATEL ENGINEERING Income Statement Analysis

  • Operating income during the year rose 7.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 18.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.0% in FY18 as against 9.1% in FY17.
  • Depreciation charges decreased by 30.5% and finance costs decreased by 15.5% YoY, respectively.
  • Other income declined by 4.5% YoY.
  • Net profit for the year declined by 201.8% YoY.
  • Net profit margins during the year grew from 2.8% in FY17 to 2.7% in FY18.

PATEL ENGINEERING Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 36,544 39,342 7.7%
Other income Rs m 2,541 2,426 -4.5%
Total Revenues Rs m 39,085 41,768 6.9%
Gross profit Rs m 3,320 3,946 18.8%
Depreciation Rs m 780 543 -30.5%
Interest Rs m 5,792 4,894 -15.5%
Profit before tax Rs m -711 935 -231.5%
Tax Rs m 318 -113 -135.4%
Profit after tax Rs m -1,029 1,048 -201.8%
Gross profit margin % 9.1 10.0
Effective tax rate % -44.7 -12.0
Net profit margin % -2.8 2.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

PATEL ENGINEERING Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 35 billion as compared to Rs 52 billion in FY17, thereby witnessing an decrease of -31.8%.
  • Long-term debt down at Rs 13 billion as compared to Rs 16 billion during FY17, a fall of 16.7%.
  • Current assets fell 26% and stood at Rs 45 billion, while fixed assets fell 15% and stood at Rs 30 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 75 billion as against Rs 96 billion during FY17, thereby witnessing a fall of 22%.

PATEL ENGINEERING Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 21,388 21,597 1.0
 
Current Liabilities Rs m 51,624 35,222 -31.8
Long-term Debt Rs m 15,988 13,324 -16.7
Total Liabilities Rs m 95,822 74,945 -21.8
 
Current assets Rs m 60,875 44,759 -26.5
Fixed Assets Rs m 34,947 29,790 -14.8
Total Assets Rs m 95,822 74,945 -21.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PATEL ENGINEERING Cash Flow Statement Analysis

  • PATEL ENGINEERING's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -6 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 704 million from the Rs 19 million net cash flows seen during FY17.

PATEL ENGINEERING 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 5,667 4,033 -28.8%
Cash Flow from Investing Activities Rs m -2,222 2,446 -
Cash Flow from Financing Activities Rs m -3,426 -5,775 -
Net Cash Flow Rs m 19 704 3,624.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PATEL ENGINEERING

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.7, an improvement from the EPS of Rs -6.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 60.3, stands at 48.9 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 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.2 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 232.8 250.6
TTM Earnings per share Rs -6.6 6.7
Diluted earnings per share Rs -2.1 2.2
Price to Cash Flow x -151.8 8.2
TTM P/E ratio x 74.6 48.9
Price / Book Value ratio x 0.6 0.6
Market Cap Rs m 12,866 13,109
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PATEL ENGINEERING

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x 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 improved and stood at 1.2x during FY18, from 0.9x 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 4.9% during FY18, from -4.8% 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 16.7% during FY18, from 13.6% 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 improved and stood at 7.9% during FY18, from 5.0% 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 1.2 1.3
Debtors’ Days Days 25 22
Interest coverage x 0.9 1.2
Debt to equity ratio x 0.7 0.6
Return on assets % 5.0 7.9
Return on equity % -4.8 4.9
Return on capital employed % 13.6 16.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

PATEL ENGINEERING Share Price Performance

Over the last one year, PATEL ENGINEERING share price has moved down from Rs 78.7 to Rs 60.3, registering a loss of Rs 18.4 or around 23.4%.

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 PATEL ENGINEERING and quarterly results for PATEL ENGINEERING)

Annual Report FAQs

What is the current share price of PATEL ENGINEERING?

PATEL ENGINEERING currently trades at Rs 57.0 per share. You can check out the latest share price performance of PATEL ENGINEERING here...

What was the revenue of PATEL ENGINEERING in FY18? How does it compare to earlier years?

The revenues of PATEL ENGINEERING stood at Rs 41,768 m in FY18, which was up 6.9% compared to Rs 39,085 m reported in FY17.

PATEL ENGINEERING's revenue has fallen from Rs 41,937 m in FY16 to Rs 41,768 m in FY18.

Over the past 3 years, the revenue of PATEL ENGINEERING has grown at a CAGR of -0.2%.

What was the net profit of PATEL ENGINEERING in FY18? How does it compare to earlier years?

The net profit of PATEL ENGINEERING stood at Rs 1,048 m in FY18, which was down -201.8% compared to Rs -1,029 m reported in FY17.

This compares to a net loss of Rs -1,962 m in FY16.

Over the past 3 years, PATEL ENGINEERING net profit has grown at a CAGR of NaN%.

What does the cash flow statement of PATEL ENGINEERING reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of PATEL ENGINEERING reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 4,033 m as compared to Rs 5,667 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs 2,446 m as compared to Rs -2,222 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -5,775 m as compared to Rs -3,426 m in FY17.

Here's the cash flow statement of PATEL ENGINEERING for the past 3 years.

(Rs m)FY16FY17FY18
From Operations-4775,6674,033
From Investments2,721-2,2222,446
From Financial Activity-3,108-3,426-5,775
Net Cashflow-86519704

What does the Key Ratio analysis of PATEL ENGINEERING reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of PATEL ENGINEERING reveals:

  • Operating profit margins witnessed a fall and down at 10.0% in FY18 as against 9.1% in FY17.
  • Net profit margins grew from 2.8% in FY17 to 2.7% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.6 as compared to 0.7 in FY17.

Here's the ratio/financial analysis of PATEL ENGINEERING for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)7.19.110.0
Net Profit Margin (%)-4.9-2.82.7
Debt to Equity Ratio (x)1.20.70.6

Read: Latest Annual Report Analysis of PATEL ENGINEERING

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