PATEL ENGG. 2017-18 Annual Report Analysis

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PATEL ENGG. 2017-18 Annual Report Analysis
Tue, 18 Dec

PATEL ENGG. 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 ENGG. Income Statement Analysis

  • Operating income during the year fell 41.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 26.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.3% in FY18 as against 10.8% 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 2.5% in FY17 to 4.2% in FY18.

PATEL ENGG. Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 38,838 22,746 -41.4%
Other income Rs m 2,541 2,426 -4.5%
Total Revenues Rs m 41,380 25,172 -39.2%
Gross profit Rs m 4,210 5,308 26.1%
Depreciation Rs m 780 543 -30.5%
Interest Rs m 5,792 4,894 -15.5%
Profit before tax Rs m 179 2,297 1,184.6%
Tax Rs m 318 -113 -135.4%
Profit after tax Rs m -1,029 1,048 -201.8%
Gross profit margin % 10.8 23.3
Effective tax rate % 177.8 -4.9
Net profit margin % -2.5 4.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PATEL ENGG. Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 34 billion as compared to Rs 52 billion in FY17, thereby witnessing an decrease of -33.7%.
  • Long-term debt down at Rs 13 billion as compared to Rs 16 billion during FY17, a fall of 16.6%.
  • Current assets fell 28% and stood at Rs 44 billion, while fixed assets fell 10% and stood at Rs 13 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 74 billion as against Rs 97 billion during FY17, thereby witnessing a fall of 23%.

PATEL ENGG. Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 21,389 21,598 1.0
 
Current Liabilities Rs m 51,624 34,232 -33.7
Long-term Debt Rs m 15,988 13,330 -16.6
Total Liabilities Rs m 96,760 74,145 -23.4
 
Current assets Rs m 60,882 44,018 -27.7
Fixed Assets Rs m 14,977 13,484 -10.0
Total Assets Rs m 96,760 74,145 -23.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PATEL ENGG. Cash Flow Statement Analysis

  • PATEL ENGG.'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 ENGG. 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 4,232 -25.3%
Cash Flow from Investing Activities Rs m -2,222 2,446 -
Cash Flow from Financing Activities Rs m -3,426 -5,974 -
Net Cash Flow Rs m 19 704 3,627.0%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for PATEL ENGG.

  • 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 39.5, stands at 2.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 1.9 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 247.4 144.9
TTM Earnings per share Rs -6.6 6.7
Diluted earnings per share Rs -13.4 13.6
Price to Cash Flow x -24.9 1.9
TTM P/E ratio x 4.7 2.3
Price / Book Value ratio x 0.6 0.6
Market Cap Rs m 6,193 3,030
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for PATEL ENGG.

  • 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 deteriorated and stood at 1.5x during FY18, from 1.0x 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 8.0% during FY18, from 4.9% 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 24 39
Interest coverage x 1.0 1.5
Debt to equity ratio x 0.7 0.6
Return on assets % 4.9 8.0
Return on equity % -4.8 4.9
Return on capital employed % 13.6 16.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

PATEL ENGG. Share Price Performance

Over the last one year, PATEL ENGG. share price has moved up from Rs 78.0 to Rs 39.5, registering a loss of Rs 38.5 or around 49.4%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 1,833.2 (up 0.1%). Over the last one year it has moved down from 2,378.1 to 1,833.2, a loss of 545 points (down 22.9%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

(To know more, check out historical annual results for PATEL ENGG. and quarterly results for PATEL ENGG.)

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