HUHTAMAKI INDIA 2017-18 Annual Report Analysis

Mon, 31 Dec

HUHTAMAKI INDIA has announced its results for the year ended December 2018. Let us have a look at the detailed performance review of the company during FY17-18.

HUHTAMAKI INDIA Income Statement Analysis

• Operating income during the year rose 16.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.4% in CY18 as against 10.8% in CY17.
• Depreciation charges increased by 0.1% and finance costs increased by 21.7% YoY, respectively.
• Other income grew by 22.7% YoY.
• Net profit for the year declined by 45.2% YoY.
• Net profit margins during the year declined from 3.1% in CY17 to 1.5% in CY18.

HUHTAMAKI INDIA Income Statement 2017-18

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*	% Change
Net Sales	Rs m	20,322	23,691	16.6%
Other income	Rs m	136	167	22.7%
Total Revenues	Rs m	20,458	23,857	16.6%
Gross profit	Rs m	2,201	2,230	1.3%
Depreciation	Rs m	852	854	0.1%
Interest	Rs m	335	407	21.7%
Profit before tax	Rs m	1,150	1,136	-1.2%
Tax	Rs m	514	787	53.2%
Profit after tax	Rs m	636	349	-45.2%
Gross profit margin	%	10.8	9.4
Effective tax rate	%	44.7	69.3
Net profit margin	%	3.1	1.5

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HUHTAMAKI INDIA Balance Sheet Analysis

• The company's current liabilities during CY18 stood at Rs 5 billion as compared to Rs 5 billion in CY17, thereby witnessing an increase of 2.8%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during CY17, a fall of 1.0%.
• Current assets fell 6% and stood at Rs 9 billion, while fixed assets rose 16% and stood at Rs 6 billion in CY18.
• Overall, the total assets and liabilities for CY18 stood at Rs 14 billion as against Rs 14 billion during CY17, thereby witnessing a growth of 2%.

HUHTAMAKI INDIA Balance Sheet as on December 2018

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*	% Change
Networth	Rs m	5,421	5,494	1.3
Current Liabilities	Rs m	4,757	4,889	2.8
Long-term Debt	Rs m	3,942	3,904	-1.0
Total Liabilities	Rs m	14,247	14,460	1.5
Current assets	Rs m	9,427	8,885	-5.7
Fixed Assets	Rs m	4,820	5,575	15.7
Total Assets	Rs m	14,247	14,460	1.5

HUHTAMAKI INDIA Cash Flow Statement Analysis

• HUHTAMAKI INDIA's cash flow from operating activities (CFO) during CY18 stood at Rs 1 billion, an improvement of 5.3% on a YoY basis.
• Cash flow from investing activities (CFI) during CY18 stood at Rs -296 million on a YoY basis.
• Cash flow from financial activities (CFF) during CY18 stood at Rs -685 million, an improvement of 22% on a YoY basis.
• Overall, net cash flows for the company during CY18 stood at Rs 33 million from the Rs 133 million net cash flows seen during CY17.

HUHTAMAKI INDIA Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-17	Dec-18
Cash Flow from Operating Activities	Rs m	960	1,012	5.3%
Cash Flow from Investing Activities	Rs m	46	-296	-
Cash Flow from Financing Activities	Rs m	-873	-685	-
Net Cash Flow	Rs m	133	33	-75.4%

Current Valuations for HUHTAMAKI INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.6, an decline from the EPS of Rs 8.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 194.0, stands at 16.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 17.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*
Sales per share (Unadj.)	Rs	269.1	313.7
TTM Earnings per share	Rs	8.4	4.6
Diluted earnings per share	Rs	8.4	4.6
Price to Cash Flow	x	17.9	17.6
TTM P/E ratio	x	30.1	16.5
Price / Book Value ratio	x	4.1	3.8
Market Cap	Rs m	22,203	21,112
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for HUHTAMAKI INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during CY18, from 2.0x during CY17. 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 3.8x during CY18, from 4.4x during CY17. 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 6.3% during CY18, from 11.7% during CY18. 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 16.4% during CY18, from 15.9% during CY17. 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 5.2% during CY18, from 6.8% during CY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*
Current ratio	x	2.0	1.8
Debtors’ Days	Days	946	878
Interest coverage	x	4.4	3.8
Debt to equity ratio	x	0.7	0.7
Return on assets	%	6.8	5.2
Return on equity	%	11.7	6.3
Return on capital employed	%	15.9	16.4

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 237.4 to Rs 320.1, registering a gain of Rs 82.7 or around 34.8%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 10,290.1 (down 0.4%). Over the last one year it has moved up from 9,270.3 to 10,290.1, a gain of 1,020 points (up 11.0%).

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