POKARNA LTD 2017-18 Annual Report Analysis

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POKARNA LTD 2017-18 Annual Report Analysis
Thu, 3 Jan

POKARNA LTD 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.

POKARNA LTD Income Statement Analysis

  • Operating income during the year fell 10.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 28.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 29.6% in FY18 as against 37.1% in FY17.
  • Depreciation charges increased by 15.5% and finance costs decreased by 12.9% YoY, respectively.
  • Other income declined by 42.8% YoY.
  • Net profit for the year declined by 39.8% YoY.
  • Net profit margins during the year declined from 20.5% in FY17 to 13.9% in FY18.

POKARNA LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 3,674 3,282 -10.7%
Other income Rs m 100 57 -42.8%
Total Revenues Rs m 3,774 3,339 -11.5%
Gross profit Rs m 1,364 972 -28.7%
Depreciation Rs m 173 199 15.5%
Interest Rs m 320 279 -12.9%
Profit before tax Rs m 971 552 -43.2%
Tax Rs m 199 87 -56.3%
Profit after tax Rs m 772 464 -39.8%
Gross profit margin % 37.1 29.6
Effective tax rate % 20.5 15.8
Net profit margin % 20.5 13.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



POKARNA LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 1 billion as compared to Rs 2 billion in FY17, thereby witnessing an decrease of -7.6%.
  • Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY17, a fall of 11.4%.
  • Current assets fell 2% and stood at Rs 2 billion, while fixed assets fell 4% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 5 billion as against Rs 5 billion during FY17, thereby witnessing a growth of 3%.

POKARNA LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 1,509 1,913 26.8
 
Current Liabilities Rs m 1,535 1,418 -7.6
Long-term Debt Rs m 1,823 1,615 -11.4
Total Liabilities Rs m 4,978 5,109 2.6
 
Current assets Rs m 2,010 1,971 -1.9
Fixed Assets Rs m 2,624 2,520 -3.9
Total Assets Rs m 4,978 5,109 2.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



POKARNA LTD Cash Flow Statement Analysis

  • POKARNA LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 771 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -297 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -509 million, an improvement of 20% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -27 million from the Rs 162 million net cash flows seen during FY17.

POKARNA LTD 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 1,110 771 -30.5%
Cash Flow from Investing Activities Rs m -320 -297 -
Cash Flow from Financing Activities Rs m -637 -509 -
Net Cash Flow Rs m 162 -27 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for POKARNA LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 74.9, an decline from the EPS of Rs 124.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 162.2, stands at 1.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 1.5 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 592.5 529.3
TTM Earnings per share Rs 124.5 74.9
Diluted earnings per share Rs 124.5 74.9
Price to Cash Flow x 1.1 1.5
TTM P/E ratio x 1.7 1.7
Price / Book Value ratio x 4.2 0.8
Market Cap Rs m 1,006 1,006
Dividends per share (Unadj.) Rs 3.0 0.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for POKARNA LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 1.3x 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 3.0x during FY18, from 4.0x 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 24.3% during FY18, from 51.2% 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 declined and down at 23.5% during FY18, from 38.8% 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 14.5% during FY18, from 21.9% 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 1.3 1.4
Debtors’ Days Days 66 77
Interest coverage x 4.0 3.0
Debt to equity ratio x 1.2 0.8
Return on assets % 21.9 14.5
Return on equity % 51.2 24.3
Return on capital employed % 38.8 23.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how POKARNA LTD has performed over the last 5 years, please visit here.

POKARNA LTD Share Price Performance

Over the last one year, POKARNA LTD share price has moved up from Rs 220.9 to Rs 162.2, registering a loss of Rs 58.7 or around 26.6%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 11,235.7 (down 1.0%). Over the last one year it has moved down from 15,157.8 to 11,235.7, a loss of 3,922 points (down 25.9%).

Overall, the S&P BSE SENSEX is up 5.9% over the year.

(To know more, check out historical annual results for POKARNA LTD and quarterly results for POKARNA LTD)

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