PIDILITE INDUSTRIES 2017-18 Annual Report Analysis

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PIDILITE INDUSTRIES 2017-18 Annual Report Analysis
Mon, 13 Aug

PIDILITE INDUSTRIES 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.

PIDILITE INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 8.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 6.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.1% in FY18 as against 22.5% in FY17.
  • Depreciation charges and finance costs increased by 4.1% YoY and 11.6% YoY, respectively.
  • Other income grew by 32.2% YoY.
  • Net profit for the year grew by 11.9% YoY.
  • Net profit margins during the year grew from 15.1% in FY17 to 15.5% in FY18.

PIDILITE INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 56,168 60,784 8.2%
Other income Rs m 1,123 1,484 32.2%
Total Revenues Rs m 57,290 62,268 8.7%
Gross profit Rs m 12,633 13,460 6.5%
Depreciation Rs m 1,151 1,199 4.1%
Interest Rs m 139 155 11.6%
Profit before tax Rs m 12,465 13,590 9.0%
Tax Rs m 3,851 3,927 2.0%
Profit after tax Rs m 8,632 9,661 11.9%
Gross profit margin % 22.5 22.1
Effective tax rate % 30.9 28.9
Net profit margin % 15.1 15.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PIDILITE INDUSTRIES 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 23.8%.
  • Long-term debt stood at Rs 71 million as compared to Rs 49 million during FY17, a growth of 46.6%.
  • Current assets rose 6% and stood at Rs 33 billion, while fixed assets rose 12% and stood at Rs 16 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 52 billion as against Rs 48 billion during FY17, thereby witnessing a growth of 9%.

PIDILITE INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 34,709 35,740 3.0
 
Current Liabilities Rs m 11,760 14,554 23.8
Long-term Debt Rs m 49 71 46.6
Total Liabilities Rs m 47,742 52,045 9.0
 
Current assets Rs m 31,340 33,088 5.6
Fixed Assets Rs m 14,230 15,950 12.1
Total Assets Rs m 47,742 52,045 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PIDILITE INDUSTRIES Cash Flow Statement Analysis

  • PIDILITE INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs 8 billion, an improvement of 0.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 393 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -8 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 468 million from the Rs -435 million net cash flows seen during FY17.

PIDILITE INDUSTRIES 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 7,938 7,964 0.3%
Cash Flow from Investing Activities Rs m -8,790 393 -
Cash Flow from Financing Activities Rs m 407 -7,898 -
Net Cash Flow Rs m -435 468 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for PIDILITE INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.0, an improvement from the EPS of Rs 16.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,123.0, stands at 58.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 11.8 times, while the price to sales ratio stands at 7.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 53.0 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 109.6 119.7
TTM Earnings per share Rs 16.8 19.0
Diluted earnings per share Rs 16.8 18.8
Price to Cash Flow x 59.0 53.0
TTM P/E ratio x 58.7 58.7
Price / Book Value ratio x 10.0 11.8
Market Cap Rs m 575,740 575,717
Dividends per share (Unadj.) Rs 4.8 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for PIDILITE INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.3x during FY18, from 2.7x 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 88.4x during FY18, from 90.5x 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 27.0% during FY18, from 24.9% 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 improved and stood at 38.4% during FY18, from 36.3% 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 improved and stood at 18.9% during FY18, from 18.4% 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 2.7 2.3
Debtors’ Days Days 50 56
Interest coverage x 90.5 88.4
Debt to equity ratio x 0.0 0.0
Return on assets % 18.4 18.9
Return on equity % 24.9 27.0
Return on capital employed % 36.3 38.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how PIDILITE INDUSTRIES has performed over the last 5 years, please visit here.

PIDILITE INDUSTRIES Share Price Performance

Over the last one year, PIDILITE INDUSTRIES share price has moved up from Rs 788.7 to Rs 1,123.0, registering a gain of Rs 334.3 or around 42.4%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 12,206.3 (up 0.2%). Over the last one year it has moved up from 9,714.2 to 12,206.3, a gain of 2,492 points (up 25.7%).

Overall, the S&P BSE SENSEX is up 19.4% over the year.

(To know more, check out historical annual results for PIDILITE INDUSTRIES and quarterly results for PIDILITE INDUSTRIES)

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PIDILITE INDUSTRIES Announces Quarterly Results (1QFY20); Net Profit Up 22.4% (Quarterly Result Update)

Aug 8, 2019 | Updated on Aug 8, 2019

For the quarter ended June 2019, PIDILITE INDUSTRIES has posted a net profit of Rs 3 bn (up 22.4% YoY). Sales on the other hand came in at Rs 20 bn (up 10.0% YoY). Read on for a complete analysis of PIDILITE INDUSTRIES's quarterly results.

PIDILITE INDUSTRIES 2018-19 Annual Report Analysis (Annual Result Update)

Jul 12, 2019 | Updated on Jul 12, 2019

Here's an analysis of the annual report of PIDILITE INDUSTRIES for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of PIDILITE INDUSTRIES. Also includes updates on the valuation of PIDILITE INDUSTRIES.

PIDILITE INDUSTRIES Announces Quarterly Results (4QFY19); Net Profit Down 5.1% (Quarterly Result Update)

May 16, 2019 | Updated on May 16, 2019

For the quarter ended March 2019, PIDILITE INDUSTRIES has posted a net profit of Rs 2 bn (down 5.1% YoY). Sales on the other hand came in at Rs 16 bn (up 10.3% YoY). Read on for a complete analysis of PIDILITE INDUSTRIES's quarterly results.

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