PRAJAY ENGG. 2017-18 Annual Report Analysis

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PRAJAY ENGG. 2017-18 Annual Report Analysis
Thu, 20 Dec

PRAJAY ENGG. 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.

PRAJAY ENGG. Income Statement Analysis

  • Operating income during the year fell 39.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 64.2% YoY during the fiscal. Operating profit margins witnessed a growth and down at 4.5% in FY18 as against 7.6% in FY17.
  • Depreciation charges decreased by 11.8% and finance costs increased by 17.0% YoY, respectively.
  • Other income grew by 2.2% YoY.
  • Net profit for the year declined by 7.3% YoY.
  • Net profit margins during the year declined from 32.8% in FY17 to 48.4% in FY18.

PRAJAY ENGG. Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 686 412 -39.9%
Other income Rs m 46 47 2.2%
Total Revenues Rs m 732 459 -37.3%
Gross profit Rs m -52 -19 -64.2%
Depreciation Rs m 58 51 -11.8%
Interest Rs m 159 186 17.0%
Profit before tax Rs m -223 -209 -6.4%
Tax Rs m 20 8 -62.7%
Profit after tax Rs m -240 -222 -7.3%
Gross profit margin % -7.6 -4.5
Effective tax rate % -9.2 -3.6
Net profit margin % -32.8 -48.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PRAJAY ENGG. Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 5 billion as compared to Rs 5 billion in FY17, thereby witnessing an increase of 9.0%.
  • Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY17, a fall of 1.9%.
  • Current assets rose 2% and stood at Rs 8 billion, while fixed assets rose 4% and stood at Rs 4 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 13 billion as against Rs 13 billion during FY17, thereby witnessing a growth of 2%.

PRAJAY ENGG. Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 6,201 5,979 -3.6
 
Current Liabilities Rs m 5,013 5,466 9.0
Long-term Debt Rs m 1,467 1,439 -1.9
Total Liabilities Rs m 12,817 13,038 1.7
 
Current assets Rs m 8,096 8,217 1.5
Fixed Assets Rs m 3,596 3,750 4.3
Total Assets Rs m 12,817 13,038 1.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PRAJAY ENGG. Cash Flow Statement Analysis

  • PRAJAY ENGG.'s cash flow from operating activities (CFO) during FY18 stood at Rs 330 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -203 million, an improvement of 3.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -122 million, an improvement of 64% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 5 million from the Rs 24 million net cash flows seen during FY17.

PRAJAY ENGG. 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 562 330 -41.3%
Cash Flow from Investing Activities Rs m -195 -203 -
Cash Flow from Financing Activities Rs m -342 -122 -
Net Cash Flow Rs m 24 5 -80.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for PRAJAY ENGG.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.2, an improvement from the EPS of Rs -3.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 9.0, stands at -3.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.2 times, while the price to sales ratio stands at 2.4 times.
  • The company's price to cash flow (P/CF) ratio stood at -4.3 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 9.8 5.9
TTM Earnings per share Rs -3.4 -3.2
Diluted earnings per share Rs -3.4 -3.2
Price to Cash Flow x -3.4 -4.3
TTM P/E ratio x -3.0 -3.0
Price / Book Value ratio x 0.1 0.2
Market Cap Rs m 629 629
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for PRAJAY ENGG.

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.5x during FY18, from 1.6x 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 -0.1x during FY18, from -0.4x 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 improved and stood at -3.7% during FY18, from -3.9% 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 improved and stood at -0.4% during FY18, from -0.8% 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 improved and stood at -0.3% during FY18, from -0.6% 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 1.6 1.5
Debtors’ Days Days 1,109 1,838
Interest coverage x -0.4 -0.1
Debt to equity ratio x 0.2 0.2
Return on assets % -0.6 -0.3
Return on equity % -3.9 -3.7
Return on capital employed % -0.8 -0.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

PRAJAY ENGG. Share Price Performance

Over the last one year, PRAJAY ENGG. share price has moved up from Rs 13.1 to Rs 9.0, registering a loss of Rs 4.1 or around 31.4%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 1,887.8 (down 0.3%). Over the last one year it has moved down from 2,483.9 to 1,887.8, a loss of 596 points (down 24.0%).

Overall, the S&P BSE SENSEX is up 7.1% over the year.

(To know more, check out historical annual results for PRAJAY ENGG. and quarterly results for PRAJAY ENGG.)

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