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FUTURE ENTERPRISES 2017-18 Annual Report Analysis
Sat, 31 Mar

FUTURE ENTERPRISES 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.

FUTURE ENTERPRISES Income Statement Analysis

  • Operating income during the year rose 17.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 18.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.3% in FY18 as against 22.1% in FY17.
  • Depreciation charges increased by 10.8% and finance costs increased by 10.7% YoY, respectively.
  • Other income declined by 21.9% YoY.
  • Net profit for the year declined by 29.5% YoY.
  • Net profit margins during the year declined from 1.0% in FY17 to 0.6% in FY18.

FUTURE ENTERPRISES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 44,875 52,560 17.1%
Other income Rs m 2,371 1,851 -21.9%
Total Revenues Rs m 47,246 54,411 15.2%
Gross profit Rs m 9,935 11,731 18.1%
Depreciation Rs m 6,543 7,252 10.8%
Interest Rs m 5,218 5,778 10.7%
Profit before tax Rs m 545 553 1.4%
Tax Rs m 114 249 117.8%
Profit after tax Rs m 431 304 -29.5%
Gross profit margin % 22.1 22.3
Effective tax rate % 21.0 45.0
Net profit margin % 1.0 0.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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FUTURE ENTERPRISES Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 14 billion as compared to Rs 12 billion in FY17, thereby witnessing an increase of 20.8%.
  • Long-term debt stood at Rs 53 billion as compared to Rs 49 billion during FY17, a growth of 8.8%.
  • Current assets rose 7% and stood at Rs 28 billion, while fixed assets rose 9% and stood at Rs 86 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 115 billion as against Rs 105 billion during FY17, thereby witnessing a growth of 9%.

FUTURE ENTERPRISES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 36,939 38,443 4.1
 
Current Liabilities Rs m 11,738 14,184 20.8
Long-term Debt Rs m 49,072 53,409 8.8
Total Liabilities Rs m 105,493 114,566 8.6
 
Current assets Rs m 26,287 28,190 7.2
Fixed Assets Rs m 79,206 86,377 9.1
Total Assets Rs m 105,493 114,566 8.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



FUTURE ENTERPRISES Cash Flow Statement Analysis

  • FUTURE ENTERPRISES's cash flow from operating activities (CFO) during FY18 stood at Rs 11 billion, an improvement of 14.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -12 billion, an improvement of 56.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 938 million, an improvement of 147% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 187 million from the Rs 162 million net cash flows seen during FY17.

FUTURE ENTERPRISES 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 9,754 11,136 14.2%
Cash Flow from Investing Activities Rs m -7,617 -11,887 -
Cash Flow from Financing Activities Rs m -1,975 938 -
Net Cash Flow Rs m 162 187 15.0%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for FUTURE ENTERPRISES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.6, an decline from the EPS of Rs 0.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 35.4, stands at -131.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 2.9 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 94.9 106.5
TTM Earnings per share Rs 0.9 0.6
Diluted earnings per share Rs 0.9 0.7
Price to Cash Flow x 2.0 2.9
TTM P/E ratio x 10.7 -131.9
Price / Book Value ratio x 1.1 0.6
Market Cap Rs m 40,333 21,967
Dividends per share (Unadj.) Rs 0.2 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for FUTURE ENTERPRISES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY18, from 2.2x 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 deteriorated and stood at 1.1x during FY18, from 1.1x 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 0.8% during FY18, from 1.2% 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 6.9% during FY18, from 6.7% 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 5.3% during FY18, from 5.4% 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 2.2 2.0
Debtors’ Days Days 5 5
Interest coverage x 1.1 1.1
Debt to equity ratio x 1.3 1.4
Return on assets % 5.4 5.3
Return on equity % 1.2 0.8
Return on capital employed % 6.7 6.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how FUTURE ENTERPRISES has performed over the last 5 years, please visit here.

FUTURE ENTERPRISES Share Price Performance

Over the last one year, FUTURE ENTERPRISES share price has moved up from Rs 30.2 to Rs 35.4, registering a gain of Rs 5.2 or around 17.2%.

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

(To know more, check out historical annual results for FUTURE ENTERPRISES and quarterly results for FUTURE ENTERPRISES)

Annual Report FAQs

What is the current share price of FUTURE ENTERPRISES?

FUTURE ENTERPRISES currently trades at Rs 0.7 per share. You can check out the latest share price performance of FUTURE ENTERPRISES here...

What was the revenue of FUTURE ENTERPRISES in FY18? How does it compare to earlier years?

The revenues of FUTURE ENTERPRISES stood at Rs 54,411 m in FY18, which was up 15.2% compared to Rs 47,246 m reported in FY17.

FUTURE ENTERPRISES' revenue has fallen from Rs 94,077 m in FY16 to Rs 54,411 m in FY18.

Over the past 3 years, the revenue of FUTURE ENTERPRISES has grown at a CAGR of -23.9%.

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

The net profit of FUTURE ENTERPRISES stood at Rs 304 m in FY18, which was down -29.5% compared to Rs 431 m reported in FY17.

This compares to a net profit of Rs 411 m in FY16.

Over the past 3 years, FUTURE ENTERPRISES net profit has grown at a CAGR of -14.0%.

What does the cash flow statement of FUTURE ENTERPRISES 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 FUTURE ENTERPRISES reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 11,136 m as compared to Rs 9,754 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -11,887 m as compared to Rs -7,617 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs 938 m as compared to Rs -1,975 m in FY17.

Here's the cash flow statement of FUTURE ENTERPRISES for the past 3 years.

(Rs m)FY16FY17FY18
From Operations9,8089,75411,136
From Investments-11,771-7,617-11,887
From Financial Activity3,472-1,975938
Net Cashflow200162187

What does the Key Ratio analysis of FUTURE ENTERPRISES 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 FUTURE ENTERPRISES reveals:

  • Operating profit margins witnessed a fall and down at 22.3% in FY18 as against 22.1% in FY17.
  • Net profit margins declined from 1.0% in FY17 to 0.6% in FY18.
  • Debt to Equity ratio for FY18 stood at 1.4 as compared to 1.3 in FY17.

Here's the ratio/financial analysis of FUTURE ENTERPRISES for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)11.622.122.3
Net Profit Margin (%)0.41.00.6
Debt to Equity Ratio (x)1.31.31.4

Read: Latest Annual Report Analysis of FUTURE ENTERPRISES

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