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PRAKASH INDUSTRIES 2017-18 Annual Report Analysis
Sat, 31 Mar

PRAKASH INDUSTRIES 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.

PRAKASH INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 48.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 121.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.4% in FY18 as against 13.6% in FY17.
  • Depreciation charges increased by 17.4% and finance costs increased by 18.8% YoY, respectively.
  • Other income grew by 346.1% YoY.
  • Net profit for the year grew by 376.9% YoY.
  • Net profit margins during the year grew from 4.2% in FY17 to 13.5% in FY18.

PRAKASH INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 19,322 28,630 48.2%
Other income Rs m 33 148 346.1%
Total Revenues Rs m 19,355 28,778 48.7%
Gross profit Rs m 2,631 5,836 121.8%
Depreciation Rs m 1,030 1,209 17.4%
Interest Rs m 750 891 18.8%
Profit before tax Rs m 884 3,883 339.3%
Tax Rs m 74 21 -71.8%
Profit after tax Rs m 810 3,863 376.9%
Gross profit margin % 13.6 20.4
Effective tax rate % 8.4 0.5
Net profit margin % 4.2 13.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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PRAKASH INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 5 billion as compared to Rs 6 billion in FY17, thereby witnessing an decrease of -11.2%.
  • Long-term debt stood at Rs 6 billion as compared to Rs 6 billion during FY17, a growth of 3.9%.
  • Current assets rose 28% and stood at Rs 5 billion, while fixed assets rose 12% and stood at Rs 32 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 37 billion as against Rs 33 billion during FY17, thereby witnessing a growth of 14%.

PRAKASH INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 22,210 26,605 19.8
 
Current Liabilities Rs m 5,876 5,218 -11.2
Long-term Debt Rs m 5,785 6,009 3.9
Total Liabilities Rs m 32,618 37,323 14.4
 
Current assets Rs m 4,133 5,293 28.1
Fixed Assets Rs m 28,485 32,030 12.4
Total Assets Rs m 32,618 37,323 14.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PRAKASH INDUSTRIES Cash Flow Statement Analysis

  • PRAKASH INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion, an improvement of 76.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -5 billion, an improvement of 93.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 104 million, an improvement of 173% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 69 million from the Rs 74 million net cash flows seen during FY17.

PRAKASH INDUSTRIES 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 2,692 4,763 76.9%
Cash Flow from Investing Activities Rs m -2,477 -4,798 -
Cash Flow from Financing Activities Rs m -142 104 -
Net Cash Flow Rs m 74 69 -6.8%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PRAKASH INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.6, an improvement from the EPS of Rs 5.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 169.2, stands at 8.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.5 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 139.0 182.5
TTM Earnings per share Rs 5.8 24.6
Diluted earnings per share Rs 4.5 21.6
Price to Cash Flow x 7.5 5.5
TTM P/E ratio x 17.0 8.0
Price / Book Value ratio x 0.4 1.0
Market Cap Rs m 8,211 27,686
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PRAKASH INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY18, from 0.7x 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 improved and stood at 5.4x during FY18, from 2.2x 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 14.5% during FY18, from 3.6% 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 14.6% during FY18, from 5.8% 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 12.7% during FY18, from 4.8% 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 0.7 1.0
Debtors’ Days Days 144 126
Interest coverage x 2.2 5.4
Debt to equity ratio x 0.3 0.2
Return on assets % 4.8 12.7
Return on equity % 3.6 14.5
Return on capital employed % 5.8 14.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

PRAKASH INDUSTRIES Share Price Performance

Over the last one year, PRAKASH INDUSTRIES share price has moved up from Rs 77.1 to Rs 169.2, registering a gain of Rs 92.2 or around 119.6%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 22,261.9 (up 0.2%). Over the last one year it has moved up from 15,257.3 to 22,261.9, a gain of 7,005 points (up 45.9%).

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

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

Annual Report FAQs

What is the current share price of PRAKASH INDUSTRIES?

PRAKASH INDUSTRIES currently trades at Rs 146.6 per share. You can check out the latest share price performance of PRAKASH INDUSTRIES here...

What was the revenue of PRAKASH INDUSTRIES in FY18? How does it compare to earlier years?

The revenues of PRAKASH INDUSTRIES stood at Rs 28,778 m in FY18, which was up 48.7% compared to Rs 19,355 m reported in FY17.

PRAKASH INDUSTRIES' revenue has grown from Rs 23,034 m in FY14 to Rs 28,778 m in FY18.

Over the past 5 years, the revenue of PRAKASH INDUSTRIES has grown at a CAGR of 5.7%.

What was the net profit of PRAKASH INDUSTRIES in FY18? How does it compare to earlier years?

The net profit of PRAKASH INDUSTRIES stood at Rs 3,863 m in FY18, which was up 376.9% compared to Rs 810 m reported in FY17.

This compares to a net profit of Rs 234 m in FY16 and a net profit of Rs 93 m in FY15.

Over the past 5 years, PRAKASH INDUSTRIES net profit has grown at a CAGR of 22.2%.

What does the cash flow statement of PRAKASH INDUSTRIES reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of PRAKASH INDUSTRIES reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 4,763 m as compared to Rs 2,692 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -4,798 m as compared to Rs -2,477 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs 104 m as compared to Rs -142 m in FY17.

Here's the cash flow statement of PRAKASH INDUSTRIES for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations3,1362,3202,4222,6924,763
From Investments-2,299-1,089-1,492-2,477-4,798
From Financial Activity-885-1,081-1,034-142104
Net Cashflow-47150-1047469

What does the Key Ratio analysis of PRAKASH INDUSTRIES reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of PRAKASH INDUSTRIES reveals:

  • Operating profit margins witnessed a fall and down at 20.4% in FY18 as against 13.6% in FY17.
  • Net profit margins grew from 4.2% in FY17 to 13.5% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.2 as compared to 0.3 in FY17.

Here's the ratio/financial analysis of PRAKASH INDUSTRIES for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)16.36.410.513.620.4
Net Profit Margin (%)7.50.41.34.213.5
Debt to Equity Ratio (x)0.30.30.30.30.2

Read: Latest Annual Report Analysis of PRAKASH INDUSTRIES

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