RAIN INDUSTRIES 2017-18 Annual Report Analysis

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RAIN INDUSTRIES 2017-18 Annual Report Analysis
Tue, 16 Apr

RAIN INDUSTRIES 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.

RAIN INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 24.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 13.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.0% in CY18 as against 20.1% in CY17.
  • Depreciation charges increased by 5.6% and finance costs decreased by 23.2% YoY, respectively.
  • Other income declined by 63.3% YoY.
  • Net profit for the year declined by 20.3% YoY.
  • Net profit margins during the year declined from 6.9% in CY17 to 4.5% in CY18.

RAIN INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending 12 Dec-17* 12 Dec-18* % Change
Net Sales Rs m 113,032 140,490 24.3%
Other income Rs m 1,110 408 -63.3%
Total Revenues Rs m 114,142 140,898 23.4%
Gross profit Rs m 22,727 19,656 -13.5%
Depreciation Rs m 5,256 5,551 5.6%
Interest Rs m 5,947 4,565 -23.2%
Profit before tax Rs m 12,634 9,948 -21.3%
Tax Rs m 2,918 3,643 24.8%
Profit after tax Rs m 7,921 6,313 -20.3%
Gross profit margin % 20.1 14.0
Effective tax rate % 23.1 36.6
Net profit margin % 6.9 4.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RAIN INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during CY18 down at Rs 26 billion as compared to Rs 55 billion in CY17, thereby witnessing an decrease of -53.5%.
  • Long-term debt stood at Rs 72 billion as compared to Rs 37 billion during CY17, a growth of 93.7%.
  • Current assets rose 4% and stood at Rs 52 billion, while fixed assets rose 10% and stood at Rs 101 billion in CY18.
  • Overall, the total assets and liabilities for CY18 stood at Rs 157 billion as against Rs 146 billion during CY17, thereby witnessing a growth of 8%.

RAIN INDUSTRIES Balance Sheet as on December 2018

No. of Mths Year Ending 12 Dec-17* 12 Dec-18* % Change
Networth Rs m 39,441 46,227 17.2
 
Current Liabilities Rs m 55,243 25,700 -53.5
Long-term Debt Rs m 37,397 72,420 93.7
Total Liabilities Rs m 145,503 157,495 8.2
 
Current assets Rs m 49,545 51,730 4.4
Fixed Assets Rs m 91,309 100,641 10.2
Total Assets Rs m 145,503 157,495 8.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RAIN INDUSTRIES Cash Flow Statement Analysis

  • RAIN INDUSTRIES's cash flow from operating activities (CFO) during CY18 stood at Rs 17 billion, an improvement of 97.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during CY18 stood at Rs -10 billion, an improvement of 105.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during CY18 stood at Rs -6 billion on a YoY basis.
  • Overall, net cash flows for the company during CY18 stood at Rs 493 million from the Rs -2 billion net cash flows seen during CY17.

RAIN INDUSTRIES 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 8,681 17,144 97.5%
Cash Flow from Investing Activities Rs m -5,035 -10,324 -
Cash Flow from Financing Activities Rs m -5,205 -6,186 -
Net Cash Flow Rs m -1,916 493 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for RAIN INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.8, an decline from the EPS of Rs 23.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 137.8, stands at 7.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.1 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 336.1 417.7
TTM Earnings per share Rs 23.6 18.8
Diluted earnings per share Rs 22.7 18.1
Price to Cash Flow x 3.5 4.1
TTM P/E ratio x 7.4 7.6
Price / Book Value ratio x 1.9 2.2
Market Cap Rs m 46,349 48,161
Dividends per share (Unadj.) Rs 1.0 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for RAIN INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.0x during CY18, from 0.9x 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 improved and stood at 3.2x during CY18, from 3.1x 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 13.7% during CY18, from 20.1% 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 declined and down at 12.2% during CY18, from 21.8% 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 6.9% during CY18, from 9.5% 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 0.9 2.0
Debtors’ Days Days 54 42
Interest coverage x 3.1 3.2
Debt to equity ratio x 0.9 1.6
Return on assets % 9.5 6.9
Return on equity % 20.1 13.7
Return on capital employed % 21.8 12.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

RAIN INDUSTRIES Share Price Performance

Over the last one year, RAIN INDUSTRIES share price has moved up from Rs 355.3 to Rs 137.8, registering a loss of Rs 217.5 or around 61.2%.

Overall, the S&P BSE SENSEX is up 14.2% over the year.

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

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Aug 28, 2019 | Updated on Aug 28, 2019

For the quarter ended June 2019, RAIN INDUSTRIES has posted a net profit of Rs 1 bn (down 51.7% YoY). Sales on the other hand came in at Rs 33 bn (down 12.1% YoY). Read on for a complete analysis of RAIN INDUSTRIES's quarterly results.

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