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POKARNA 2017-18 Annual Report Analysis
Sat, 31 Mar

POKARNA 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 Income Statement Analysis

  • Operating income during the year fell 8.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 26.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 28.3% in FY18 as against 35.5% in FY17.
  • Depreciation charges increased by 15.2% and finance costs decreased by 10.0% YoY, respectively.
  • Other income declined by 41.1% YoY.
  • Net profit for the year declined by 39.9% YoY.
  • Net profit margins during the year declined from 19.3% in FY17 to 12.6% in FY18.

POKARNA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 3,648 3,357 -8.0%
Other income Rs m 100 59 -41.1%
Total Revenues Rs m 3,748 3,416 -8.9%
Gross profit Rs m 1,297 949 -26.8%
Depreciation Rs m 172 199 15.2%
Interest Rs m 331 298 -10.0%
Profit before tax Rs m 893 511 -42.8%
Tax Rs m 191 89 -53.4%
Profit after tax Rs m 703 422 -39.9%
Gross profit margin % 35.5 28.3
Effective tax rate % 21.4 17.4
Net profit margin % 19.3 12.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

POKARNA Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 2 billion as compared to Rs 2 billion in FY17, thereby witnessing an decrease of -5.2%.
  • Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY17, a fall of 11.2%.
  • Current assets rose 0% and stood at Rs 2 billion, while fixed assets rose 3% 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 2%.

POKARNA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 1,509 1,914 26.9
 
Current Liabilities Rs m 1,641 1,556 -5.2
Long-term Debt Rs m 1,823 1,619 -11.2
Total Liabilities Rs m 5,080 5,161 1.6
 
Current assets Rs m 2,116 2,117 0.1
Fixed Assets Rs m 2,964 3,043 2.7
Total Assets Rs m 5,080 5,161 1.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



POKARNA Cash Flow Statement Analysis

  • POKARNA'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 -516 million, an improvement of 20% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -26 million from the Rs 157 million net cash flows seen during FY17.

POKARNA 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 -647 -516 -
Net Cash Flow Rs m 157 -26 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for POKARNA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.6, an decline from the EPS of Rs 113.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 178.1, stands at 11.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 44.7 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 588.4 108.3
TTM Earnings per share Rs 113.3 13.6
Diluted earnings per share Rs 22.7 13.6
Price to Cash Flow x 37.1 44.7
TTM P/E ratio x 46.6 11.9
Price / Book Value ratio x 4.2 14.5
Market Cap Rs m 6,271 27,776
Dividends per share (Unadj.) Rs 0.6 0.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for POKARNA

  • 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 2.7x during FY18, from 3.7x 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 22.1% during FY18, from 46.6% 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 22.9% during FY18, from 36.8% 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 14.0% during FY18, from 20.3% 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 666 754
Interest coverage x 3.7 2.7
Debt to equity ratio x 1.2 0.8
Return on assets % 20.3 14.0
Return on equity % 46.6 22.1
Return on capital employed % 36.8 22.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

POKARNA Share Price Performance

Over the last one year, POKARNA share price has moved down from Rs 1,047.0 to Rs 178.1, registering a loss of Rs 869.0 or around 83.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 13,322.0 (down 2.0%). Over the last one year it has moved up from 11,804.5 to 13,322.0, a gain of 1,518 points (up 12.9%).

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

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

Annual Report FAQs

What is the current share price of POKARNA?

POKARNA currently trades at Rs 424.0 per share. You can check out the latest share price performance of POKARNA here...

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

The revenues of POKARNA stood at Rs 3,416 m in FY18, which was down -8.9% compared to Rs 3,748 m reported in FY17.

POKARNA's revenue has fallen from Rs 3,951 m in FY16 to Rs 3,416 m in FY18.

Over the past 3 years, the revenue of POKARNA has grown at a CAGR of -7.0%.

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

The net profit of POKARNA stood at Rs 422 m in FY18, which was down -39.9% compared to Rs 703 m reported in FY17.

This compares to a net profit of Rs 512 m in FY16.

Over the past 3 years, POKARNA net profit has grown at a CAGR of -9.2%.

What does the cash flow statement of POKARNA 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 POKARNA reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 771 m as compared to Rs 1,110 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -297 m as compared to Rs -320 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -516 m as compared to Rs -647 m in FY17.

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

(Rs m)FY16FY17FY18
From Operations1,0551,110771
From Investments-307-320-297
From Financial Activity-752-647-516
Net Cashflow-1157-26

What does the Key Ratio analysis of POKARNA 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 POKARNA reveals:

  • Operating profit margins witnessed a fall and stood at 28.3% in FY18 as against 35.5% in FY17.
  • Net profit margins declined from 19.3% in FY17 to 12.6% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.8 as compared to 1.2 in FY17.

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

 FY16FY17FY18
Operating Profit Margin (%)30.035.528.3
Net Profit Margin (%)13.219.312.6
Debt to Equity Ratio (x)1.91.20.8

Read: Latest Annual Report Analysis of POKARNA

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