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PEARL GLOBAL 2017-18 Annual Report Analysis
Sat, 31 Mar

PEARL 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.

PEARL GLOBAL Income Statement Analysis

  • Operating income during the year fell 2.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 37.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.0% in FY18 as against 4.7% in FY17.
  • Depreciation charges increased by 17.6% and finance costs increased by 9.7% YoY, respectively.
  • Other income grew by 58.1% YoY.
  • Net profit for the year declined by 45.0% YoY.
  • Net profit margins during the year declined from 2.7% in FY17 to 1.5% in FY18.

PEARL GLOBAL Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 15,375 14,960 -2.7%
Other income Rs m 301 476 58.1%
Total Revenues Rs m 15,676 15,436 -1.5%
Gross profit Rs m 729 454 -37.8%
Depreciation Rs m 192 226 17.6%
Interest Rs m 345 379 9.7%
Profit before tax Rs m 492 324 -34.1%
Tax Rs m 72 93 29.1%
Profit after tax Rs m 420 231 -45.0%
Gross profit margin % 4.7 3.0
Effective tax rate % 14.7 28.7
Net profit margin % 2.7 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

PEARL GLOBAL Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 4 billion as compared to Rs 4 billion in FY17, thereby witnessing an decrease of -2.4%.
  • Long-term debt stood at Rs 490 million as compared to Rs 369 million during FY17, a growth of 32.9%.
  • Current assets fell 5% and stood at Rs 5 billion, while fixed assets rose 15% and stood at Rs 4 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 9 billion as against Rs 9 billion during FY17, thereby witnessing a growth of 2%.

PEARL GLOBAL Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 3,805 3,951 3.9
 
Current Liabilities Rs m 4,367 4,263 -2.4
Long-term Debt Rs m 369 490 32.9
Total Liabilities Rs m 9,273 9,499 2.4
 
Current assets Rs m 5,777 5,495 -4.9
Fixed Assets Rs m 3,496 4,004 14.5
Total Assets Rs m 9,273 9,499 2.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PEARL GLOBAL Cash Flow Statement Analysis

  • PEARL GLOBAL's cash flow from operating activities (CFO) during FY18 stood at Rs 335 million, an improvement of 122.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -585 million, an improvement of 19.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 308 million, an improvement of 172% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 59 million from the Rs -225 million net cash flows seen during FY17.

PEARL 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 151 335 122.5%
Cash Flow from Investing Activities Rs m -489 -585 -
Cash Flow from Financing Activities Rs m 113 308 172.5%
Net Cash Flow Rs m -225 59 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PEARL GLOBAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.7, an decline from the EPS of Rs 19.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 106.0, stands at 11.1 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 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.5 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 709.8 690.7
TTM Earnings per share Rs 19.4 10.7
Diluted earnings per share Rs 19.4 10.7
Price to Cash Flow x 4.2 6.5
TTM P/E ratio x 7.4 11.1
Price / Book Value ratio x 1.0 0.7
Market Cap Rs m 3,983 2,957
Dividends per share (Unadj.) Rs 3.0 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PEARL GLOBAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY18, from 1.3x 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 1.9x during FY18, from 2.4x 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 5.8% during FY18, from 11.0% 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 declined and down at 15.8% during FY18, from 20.1% 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 6.4% during FY18, from 8.3% 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 1.3 1.3
Debtors’ Days Days 378 346
Interest coverage x 2.4 1.9
Debt to equity ratio x 0.1 0.1
Return on assets % 8.3 6.4
Return on equity % 11.0 5.8
Return on capital employed % 20.1 15.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

PEARL GLOBAL Share Price Performance

Over the last one year, PEARL GLOBAL share price has moved down from Rs 118.7 to Rs 106.0, registering a loss of Rs 12.7 or around 10.7%.

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

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

Annual Report FAQs

What is the current share price of PEARL GLOBAL?

PEARL GLOBAL currently trades at Rs 540.2 per share. You can check out the latest share price performance of PEARL GLOBAL here...

What was the revenue of PEARL GLOBAL in FY18? How does it compare to earlier years?

The revenues of PEARL GLOBAL stood at Rs 15,436 m in FY18, which was down -1.5% compared to Rs 15,676 m reported in FY17.

PEARL GLOBAL's revenue has grown from Rs 14,186 m in FY16 to Rs 15,436 m in FY18.

Over the past 3 years, the revenue of PEARL GLOBAL has grown at a CAGR of 4.3%.

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

The net profit of PEARL GLOBAL stood at Rs 231 m in FY18, which was down -45.0% compared to Rs 420 m reported in FY17.

This compares to a net profit of Rs 365 m in FY16.

Over the past 3 years, PEARL GLOBAL net profit has grown at a CAGR of -20.5%.

What does the cash flow statement of PEARL GLOBAL 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 PEARL GLOBAL reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 335 m as compared to Rs 151 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -585 m as compared to Rs -489 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs 308 m as compared to Rs 113 m in FY17.

Here's the cash flow statement of PEARL GLOBAL for the past 3 years.

(Rs m)FY16FY17FY18
From Operations253151335
From Investments-222-489-585
From Financial Activity235113308
Net Cashflow266-22559

What does the Key Ratio analysis of PEARL GLOBAL 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 PEARL GLOBAL reveals:

  • Operating profit margins witnessed a fall and stood at 3.0% in FY18 as against 4.7% in FY17.
  • Net profit margins declined from 2.7% in FY17 to 1.5% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.1 as compared to 0.1 in FY17.

Here's the ratio/financial analysis of PEARL GLOBAL for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)4.34.73.0
Net Profit Margin (%)2.62.71.5
Debt to Equity Ratio (x)0.10.10.1

Read: Latest Annual Report Analysis of PEARL GLOBAL

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