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PRIME FOCUS 2017-18 Annual Report Analysis

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PRIME FOCUS 2017-18 Annual Report Analysis
Wed, 10 Apr

PRIME FOCUS 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.

PRIME FOCUS Income Statement Analysis

  • Operating income during the year rose 4.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 4.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.0% in FY18 as against 19.0% in FY17.
  • Depreciation charges increased by 8.9% and finance costs increased by 23.4% YoY, respectively.
  • Other income declined by 6.5% YoY.
  • Net profit for the year declined by 146.4% YoY.
  • Net profit margins during the year declined from 4.4% in FY17 to 1.9% in FY18.

PRIME FOCUS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 21,536 22,575 4.8%
Other income Rs m 245 229 -6.5%
Total Revenues Rs m 21,781 22,803 4.7%
Gross profit Rs m 4,099 4,280 4.4%
Depreciation Rs m 2,546 2,773 8.9%
Interest Rs m 1,720 2,123 23.4%
Profit before tax Rs m 77 -388 -601.6%
Tax Rs m 90 56 -37.2%
Profit after tax Rs m 956 -444 -146.4%
Gross profit margin % 19.0 19.0
Effective tax rate % 115.9 -14.5
Net profit margin % 4.4 -1.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PRIME FOCUS Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 15 billion as compared to Rs 12 billion in FY17, thereby witnessing an increase of 20.4%.
  • Long-term debt stood at Rs 9 billion as compared to Rs 9 billion during FY17, a growth of 1.9%.
  • Current assets rose 13% and stood at Rs 10 billion, while fixed assets rose 4% and stood at Rs 13 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 35 billion as against Rs 33 billion during FY17, thereby witnessing a growth of 4%.

PRIME FOCUS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 5,400 4,931 -8.7
 
Current Liabilities Rs m 12,372 14,891 20.4
Long-term Debt Rs m 9,092 9,269 1.9
Total Liabilities Rs m 33,458 34,649 3.6
 
Current assets Rs m 8,714 9,812 12.6
Fixed Assets Rs m 12,951 13,461 3.9
Total Assets Rs m 33,458 34,649 3.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PRIME FOCUS Cash Flow Statement Analysis

  • PRIME FOCUS's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -4 billion, an improvement of 328.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 1 billion, an improvement of 179% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -265 million from the Rs 152 million net cash flows seen during FY17.

PRIME FOCUS 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 2,912 2,006 -31.1%
Cash Flow from Investing Activities Rs m -874 -3,744 -
Cash Flow from Financing Activities Rs m -1,872 1,472 -
Net Cash Flow Rs m 152 -265 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for PRIME FOCUS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.5, an decline from the EPS of Rs 3.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 65.9, stands at -10.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.2 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 72.1 75.5
TTM Earnings per share Rs 3.2 -1.5
Diluted earnings per share Rs 5.2 -2.4
Price to Cash Flow x 5.6 5.2
TTM P/E ratio x -17.0 -10.6
Price / Book Value ratio x 3.8 6.6
Market Cap Rs m 19,696 12,219
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 PRIME FOCUS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY18, from 0.7x 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 0.8x 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 declined and down at -9.0% during FY18, from 17.7% 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 12.2% during FY18, from 19.1% 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 4.8% during FY18, from 8.0% 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 0.7 0.7
Debtors’ Days Days 46 56
Interest coverage x 1.0 0.8
Debt to equity ratio x 1.7 1.9
Return on assets % 8.0 4.8
Return on equity % 17.7 -9.0
Return on capital employed % 19.1 12.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how PRIME FOCUS has performed over the last 5 years, please visit here.

PRIME FOCUS Share Price Performance

Over the last one year, PRIME FOCUS share price has moved up from Rs 92.0 to Rs 65.9, registering a loss of Rs 26.1 or around 28.4%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,730.6 (down 1.1%). Over the last one year it has moved up from 6,509.6 to 7,730.6, a gain of 1,221 points (up 18.8%).

Overall, the S&P BSE SENSEX is up 14.2% over the year.

(To know more, check out historical annual results for PRIME FOCUS and quarterly results for PRIME FOCUS)

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PRIME FOCUS Announces Quarterly Results (3QFY19); Net Profit Up 476.1% (Quarterly Result Update)

Feb 22, 2019 | Updated on Feb 22, 2019

For the quarter ended December 2018, PRIME FOCUS has posted a net profit of Rs 264 m (up 476.1% YoY). Sales on the other hand came in at Rs 7 bn (up 7.3% YoY). Read on for a complete analysis of PRIME FOCUS's quarterly results.

PRIME FOCUS Announces Quarterly Results (2QFY19); Net Profit Down 426.6% (Quarterly Result Update)

Nov 23, 2018 | Updated on Nov 23, 2018

For the quarter ended September 2018, PRIME FOCUS has posted a net profit of Rs 714 m (down 426.6% YoY). Sales on the other hand came in at Rs 6 bn (up 10.7% YoY). Read on for a complete analysis of PRIME FOCUS's quarterly results.

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