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PRAJ IND.LTD 2017-18 Annual Report Analysis

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PRAJ IND.LTD 2017-18 Annual Report Analysis
Thu, 20 Dec

PRAJ IND.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.

PRAJ IND.LTD Income Statement Analysis

  • Operating income during the year rose 0.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 25.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.6% in FY18 as against 7.5% in FY17.
  • Depreciation charges increased by 8.9% and finance costs decreased by 13.0% YoY, respectively.
  • Other income grew by 19.9% YoY.
  • Net profit for the year declined by 11.5% YoY.
  • Net profit margins during the year declined from 4.8% in FY17 to 4.2% in FY18.

PRAJ IND.LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 9,150 9,166 0.2%
Other income Rs m 223 267 19.9%
Total Revenues Rs m 9,373 9,433 0.6%
Gross profit Rs m 687 515 -25.0%
Depreciation Rs m 221 241 8.9%
Interest Rs m 13 11 -13.0%
Profit before tax Rs m 675 530 -21.5%
Tax Rs m 229 135 -41.0%
Profit after tax Rs m 446 395 -11.5%
Gross profit margin % 7.5 5.6
Effective tax rate % 34.0 25.5
Net profit margin % 4.8 4.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PRAJ IND.LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 4 billion as compared to Rs 5 billion in FY17, thereby witnessing an decrease of -15.4%.
  • Long-term debt down at Rs 0 million as compared to Rs 1 million during FY17, a fall of 50.0%.
  • Current assets fell 5% and stood at Rs 8 billion, while fixed assets fell 0% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 11 billion as against Rs 12 billion during FY17, thereby witnessing a fall of 5%.

PRAJ IND.LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 7,096 7,261 2.3
 
Current Liabilities Rs m 4,616 3,905 -15.4
Long-term Debt Rs m 1 0 -50.0
Total Liabilities Rs m 11,874 11,333 -4.6
 
Current assets Rs m 8,353 7,920 -5.2
Fixed Assets Rs m 3,013 3,013 0.0
Total Assets Rs m 11,874 11,333 -4.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PRAJ IND.LTD Cash Flow Statement Analysis

  • PRAJ IND.LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion, an improvement of 402.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -707 million, an improvement of 780.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -247 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 81 million from the Rs 87 million net cash flows seen during FY17.

PRAJ IND.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 202 1,014 402.3%
Cash Flow from Investing Activities Rs m -80 -707 -
Cash Flow from Financing Activities Rs m -39 -247 -
Net Cash Flow Rs m 87 81 -7.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for PRAJ IND.LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.2, an decline from the EPS of Rs 2.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 113.5, stands at 44.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 1.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 33.0 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 51.4 50.7
TTM Earnings per share Rs 2.5 2.2
Diluted earnings per share Rs 2.4 2.1
Price to Cash Flow x 30.3 33.0
TTM P/E ratio x 43.2 44.8
Price / Book Value ratio x 2.2 2.4
Market Cap Rs m 20,203 20,973
Dividends per share (Unadj.) Rs 1.6 1.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for PRAJ IND.LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.0x during FY18, from 1.8x 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 47.5x during FY18, from 52.5x 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 5.4% during FY18, from 6.3% 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 7.5% during FY18, from 9.7% 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 3.6% during FY18, from 3.9% 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 1.8 2.0
Debtors’ Days Days 118 105
Interest coverage x 52.5 47.5
Debt to equity ratio x 0.0 0.0
Return on assets % 3.9 3.6
Return on equity % 6.3 5.4
Return on capital employed % 9.7 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

PRAJ IND.LTD Share Price Performance

Over the last one year, PRAJ IND.LTD share price has moved up from Rs 112.8 to Rs 113.5, registering a gain of Rs 0.8 or around 0.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,794.4 (down 0.0%). Over the last one year it has moved up from 18,684.3 to 18,794.4, a gain of 110 points (up 0.6%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

(To know more, check out historical annual results for PRAJ IND.LTD and quarterly results for PRAJ IND.LTD)

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