HUHTAMAKI INDIA 2016-17 Annual Report Analysis

Sun, 31 Dec

HUHTAMAKI INDIA has announced its results for the year ended December 2017. Let us have a look at the detailed performance review of the company during FY16-17.

HUHTAMAKI INDIA Income Statement Analysis

• Operating income during the year rose 1.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 11.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.8% in CY17 as against 12.4% in CY16.
• Depreciation charges decreased by 8.1% and finance costs decreased by 14.6% YoY, respectively.
• Other income declined by 22.7% YoY.
• Net profit for the year declined by 22.0% YoY.
• Net profit margins during the year declined from 4.1% in CY16 to 3.1% in CY17.

HUHTAMAKI INDIA Income Statement 2016-17

No. of Mths Year Ending		12 Dec-16*	12 Dec-17*	% Change
Net Sales	Rs m	20,020	20,322	1.5%
Other income	Rs m	176	136	-22.7%
Total Revenues	Rs m	20,196	20,458	1.3%
Gross profit	Rs m	2,477	2,201	-11.2%
Depreciation	Rs m	928	852	-8.1%
Interest	Rs m	392	335	-14.6%
Profit before tax	Rs m	1,333	1,150	-13.8%
Tax	Rs m	518	514	-0.8%
Profit after tax	Rs m	815	636	-22.0%
Gross profit margin	%	12.4	10.8
Effective tax rate	%	38.8	44.7
Net profit margin	%	4.1	3.1

HUHTAMAKI INDIA Balance Sheet Analysis

• The company's current liabilities during CY17 down at Rs 5 billion as compared to Rs 5 billion in CY16, thereby witnessing an decrease of -7.3%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during CY16, a fall of 3.3%.
• Current assets rose 2% and stood at Rs 9 billion, while fixed assets fell 4% and stood at Rs 5 billion in CY17.
• Overall, the total assets and liabilities for CY17 stood at Rs 14 billion as against Rs 14 billion during CY16, thereby witnessing a fall of 0%.

HUHTAMAKI INDIA Balance Sheet as on December 2017

No. of Mths Year Ending		12 Dec-16*	12 Dec-17*	% Change
Networth	Rs m	5,051	5,421	7.3
Current Liabilities	Rs m	5,130	4,757	-7.3
Long-term Debt	Rs m	4,076	3,942	-3.3
Total Liabilities	Rs m	14,270	14,247	-0.2
Current assets	Rs m	9,223	9,427	2.2
Fixed Assets	Rs m	5,047	4,820	-4.5
Total Assets	Rs m	14,270	14,247	-0.2

HUHTAMAKI INDIA Cash Flow Statement Analysis

• HUHTAMAKI INDIA's cash flow from operating activities (CFO) during CY17 stood at Rs 960 million on a YoY basis.
• Cash flow from investing activities (CFI) during CY17 stood at Rs 46 million on a YoY basis.
• Cash flow from financial activities (CFF) during CY17 stood at Rs -873 million, an improvement of 42% on a YoY basis.
• Overall, net cash flows for the company during CY17 stood at Rs 133 million from the Rs 157 million net cash flows seen during CY16.

HUHTAMAKI INDIA Cash Flow Statement 2016-17

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-16	Dec-17
Cash Flow from Operating Activities	Rs m	1,665	960	-42.3%
Cash Flow from Investing Activities	Rs m	-4	46	-
Cash Flow from Financing Activities	Rs m	-1,504	-873	-
Net Cash Flow	Rs m	157	133	-15.6%

Current Valuations for HUHTAMAKI INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.4, an decline from the EPS of Rs 11.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 353.7, stands at 30.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 14.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-16*	12 Dec-17*
Sales per share (Unadj.)	Rs	275.3	269.1
TTM Earnings per share	Rs	11.2	8.4
Diluted earnings per share	Rs	10.8	8.4
Price to Cash Flow	x	10.5	14.9
TTM P/E ratio	x	20.6	30.1
Price / Book Value ratio	x	3.6	4.1
Market Cap	Rs m	18,320	22,203
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for HUHTAMAKI INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during CY17, from 1.8x during CY16. 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 improved and stood at 4.4x during CY17, from 4.4x during CY16. 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 11.7% during CY17, from 16.1% during CY17. 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 15.9% during CY17, from 18.9% during CY16. 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 6.8% during CY17, from 8.5% during CY16. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-16*	12 Dec-17*
Current ratio	x	1.8	2.0
Debtors’ Days	Days	844	946
Interest coverage	x	4.4	4.4
Debt to equity ratio	x	0.8	0.7
Return on assets	%	8.5	6.8
Return on equity	%	16.1	11.7
Return on capital employed	%	18.9	15.9

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

HUHTAMAKI INDIA Share Price Performance

Over the last one year, HUHTAMAKI INDIA share price has moved up from Rs 209.6 to Rs 237.4, registering a gain of Rs 27.8 or around 13.3%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 9,270.3 (down 0.4%). Over the last one year it has moved up from 7,692.3 to 9,270.3, a gain of 1,578 points (up 20.5%).

Overall, the S&P BSE SENSEX is up 16.9% over the year.

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

Read: Latest Annual Report Analysis of HUHTAMAKI INDIA