PHOENIX MILL 2017-18 Annual Report Analysis

Sat, 31 Mar

PHOENIX MILL 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.

PHOENIX MILL Income Statement Analysis

• Operating income during the year fell 11.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 48.1% in FY18 as against 46.5% in FY17.
• Depreciation charges increased by 1.5% and finance costs decreased by 17.8% YoY, respectively.
• Other income grew by 17.7% YoY.
• Net profit for the year grew by 11.4% YoY.
• Net profit margins during the year grew from 10.4% in FY17 to 13.1% in FY18.

PHOENIX MILL Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	18,246	16,199	-11.2%
Other income	Rs m	472	556	17.7%
Total Revenues	Rs m	18,719	16,755	-10.5%
Gross profit	Rs m	8,477	7,787	-8.1%
Depreciation	Rs m	1,953	1,983	1.5%
Interest	Rs m	4,239	3,487	-17.8%
Profit before tax	Rs m	2,758	2,874	4.2%
Tax	Rs m	858	758	-11.6%
Profit after tax	Rs m	1,900	2,116	11.4%
Gross profit margin	%	46.5	48.1
Effective tax rate	%	31.1	26.4
Net profit margin	%	10.4	13.1

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PHOENIX MILL Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 17 billion as compared to Rs 11 billion in FY17, thereby witnessing an increase of 54.4%.
• Long-term debt stood at Rs 32 billion as compared to Rs 31 billion during FY17, a growth of 2.9%.
• Current assets rose 3% and stood at Rs 14 billion, while fixed assets rose 26% and stood at Rs 69 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 84 billion as against Rs 69 billion during FY17, thereby witnessing a growth of 21%.

PHOENIX MILL Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	21,467	28,424	32.4
Current Liabilities	Rs m	11,255	17,383	54.4
Long-term Debt	Rs m	31,066	31,972	2.9
Total Liabilities	Rs m	68,841	83,579	21.4
Current assets	Rs m	14,068	14,450	2.7
Fixed Assets	Rs m	54,773	69,129	26.2
Total Assets	Rs m	68,841	83,579	21.4

PHOENIX MILL Cash Flow Statement Analysis

• PHOENIX MILL's cash flow from operating activities (CFO) during FY18 stood at Rs 15 billion, an improvement of 6.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -18 billion, an improvement of 416.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 3 billion, an improvement of 125% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -333 million from the Rs -427 million net cash flows seen during FY17.

PHOENIX MILL 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	14,189	15,142	6.7%
Cash Flow from Investing Activities	Rs m	-3,536	-18,249	-
Cash Flow from Financing Activities	Rs m	-11,080	2,774	-
Net Cash Flow	Rs m	-427	-333	-

Current Valuations for PHOENIX MILL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.8, an improvement from the EPS of Rs 12.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 593.1, stands at 43.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 5.6 times.
• The company's price to cash flow (P/CF) ratio stood at 20.5 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	119.2	105.8
TTM Earnings per share	Rs	12.4	13.8
Diluted earnings per share	Rs	10.6	11.9
Price to Cash Flow	x	17.5	20.5
TTM P/E ratio	x	34.9	43.5
Price / Book Value ratio	x	2.6	3.0
Market Cap	Rs m	55,873	84,132
Dividends per share (Unadj.)	Rs	2.4	2.6

Ratio Analysis for PHOENIX MILL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x 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 1.8x during FY18, from 1.7x 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 7.4% during FY18, from 8.9% 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 10.5% during FY18, from 13.3% 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 6.7% during FY18, from 8.9% 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	0.8
Debtors’ Days	Days	294	291
Interest coverage	x	1.7	1.8
Debt to equity ratio	x	1.4	1.1
Return on assets	%	8.9	6.7
Return on equity	%	8.9	7.4
Return on capital employed	%	13.3	10.5

To see how PHOENIX MILL has performed over the last 5 years, please visit here.

PHOENIX MILL Share Price Performance

Over the last one year, PHOENIX MILL share price has moved up from Rs 377.2 to Rs 593.1, registering a gain of Rs 216.0 or around 57.3%.

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 PHOENIX MILL and quarterly results for PHOENIX MILL)

Read: Latest Annual Report Analysis of PHOENIX MILL