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MARATHON NEXTGEN 2017-18 Annual Report Analysis
Sat, 31 Mar

MARATHON NEXTGEN 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.

MARATHON NEXTGEN Income Statement Analysis

  • Operating income during the year fell 64.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 24.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 62.4% in FY18 as against 29.4% in FY17.
  • Depreciation charges increased by 415.6% and finance costs increased by 1424.1% YoY, respectively.
  • Other income declined by 98.7% YoY.
  • Net profit for the year declined by 66.7% YoY.
  • Net profit margins during the year declined from 43.6% in FY17 to 40.4% in FY18.

MARATHON NEXTGEN Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 1,931 693 -64.1%
Other income Rs m 496 6 -98.7%
Total Revenues Rs m 2,427 699 -71.2%
Gross profit Rs m 568 432 -24.0%
Depreciation Rs m 1 8 415.6%
Interest Rs m 3 46 1,424.1%
Profit before tax Rs m 1,060 385 -63.6%
Tax Rs m 218 105 -51.8%
Profit after tax Rs m 841 280 -66.7%
Gross profit margin % 29.4 62.4
Effective tax rate % 20.6 27.3
Net profit margin % 43.6 40.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

MARATHON NEXTGEN Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 2 billion as compared to Rs 77 million in FY17, thereby witnessing an increase of 2740.5%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 113 million during FY17, a growth of 930.2%.
  • Current assets rose 10% and stood at Rs 3 billion, while fixed assets rose 24% and stood at Rs 5 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 9 billion as against Rs 7 billion during FY17, thereby witnessing a growth of 18%.

MARATHON NEXTGEN Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 6,760 5,495 -18.7
 
Current Liabilities Rs m 77 2,182 2,740.5
Long-term Debt Rs m 113 1,165 930.2
Total Liabilities Rs m 7,364 8,691 18.0
 
Current assets Rs m 3,037 3,345 10.2
Fixed Assets Rs m 4,328 5,345 23.5
Total Assets Rs m 7,364 8,691 18.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MARATHON NEXTGEN Cash Flow Statement Analysis

  • MARATHON NEXTGEN'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 -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 401 million, an improvement of 422% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 112 million from the Rs -32 million net cash flows seen during FY17.

MARATHON NEXTGEN 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 -556 1,694 -
Cash Flow from Investing Activities Rs m 448 -1,983 -
Cash Flow from Financing Activities Rs m 77 401 422.3%
Net Cash Flow Rs m -32 112 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MARATHON NEXTGEN

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.2, an decline from the EPS of Rs 29.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 417.2, stands at 68.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 13.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 37.2 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 67.9 30.1
TTM Earnings per share Rs 29.6 12.2
Diluted earnings per share Rs 16.6 5.5
Price to Cash Flow x 15.8 37.2
TTM P/E ratio x 16.5 68.6
Price / Book Value ratio x 0.9 1.9
Market Cap Rs m 6,142 10,692
Dividends per share (Unadj.) Rs 0.5 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MARATHON NEXTGEN

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY18, from 39.5x 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 9.5x during FY18, from 355.5x 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 declined and down at 5.1% during FY18, from 12.4% 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 6.5% during FY18, from 15.5% 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 3.7% during FY18, from 11.5% 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 39.5 1.5
Debtors’ Days Days 4,965 2
Interest coverage x 355.5 9.5
Debt to equity ratio x 0.0 0.2
Return on assets % 11.5 3.7
Return on equity % 12.4 5.1
Return on capital employed % 15.5 6.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how MARATHON NEXTGEN has performed over the last 5 years, please visit here.

MARATHON NEXTGEN Share Price Performance

Over the last one year, MARATHON NEXTGEN share price has moved up from Rs 262.4 to Rs 417.2, registering a gain of Rs 154.8 or around 59.0%.

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 MARATHON NEXTGEN and quarterly results for MARATHON NEXTGEN)

Annual Report FAQs

What is the current share price of MARATHON NEXTGEN?

MARATHON NEXTGEN currently trades at Rs 511.3 per share. You can check out the latest share price performance of MARATHON NEXTGEN here...

What was the revenue of MARATHON NEXTGEN in FY18? How does it compare to earlier years?

The revenues of MARATHON NEXTGEN stood at Rs 699 m in FY18, which was down -71.2% compared to Rs 2,427 m reported in FY17.

MARATHON NEXTGEN's revenue has fallen from Rs 2,425 m in FY16 to Rs 699 m in FY18.

Over the past 3 years, the revenue of MARATHON NEXTGEN has grown at a CAGR of -46.3%.

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

The net profit of MARATHON NEXTGEN stood at Rs 280 m in FY18, which was down -66.7% compared to Rs 841 m reported in FY17.

This compares to a net profit of Rs 834 m in FY16.

Over the past 3 years, MARATHON NEXTGEN net profit has grown at a CAGR of -42.0%.

What does the cash flow statement of MARATHON NEXTGEN 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 MARATHON NEXTGEN reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 1,694 m as compared to Rs -556 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -1,983 m as compared to Rs 448 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs 401 m as compared to Rs 77 m in FY17.

Here's the cash flow statement of MARATHON NEXTGEN for the past 3 years.

(Rs m)FY16FY17FY18
From Operations-525-5561,694
From Investments644448-1,983
From Financial Activity-13777401
Net Cashflow-17-32112

What does the Key Ratio analysis of MARATHON NEXTGEN 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 MARATHON NEXTGEN reveals:

  • Operating profit margins witnessed a fall and down at 62.4% in FY18 as against 29.4% in FY17.
  • Net profit margins declined from 43.6% in FY17 to 40.4% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.2 as compared to 0.0 in FY17.

Here's the ratio/financial analysis of MARATHON NEXTGEN for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)30.629.462.4
Net Profit Margin (%)42.343.640.4
Debt to Equity Ratio (x)0.00.00.2

Read: Latest Annual Report Analysis of MARATHON NEXTGEN

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