PRAKASH INDUSTRIES 2017-18 Annual Report Analysis

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PRAKASH INDUSTRIES 2017-18 Annual Report Analysis
Tue, 21 Aug

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 35.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 122.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.8% in FY18 as against 12.0% in FY17.
  • Depreciation charges and finance costs increased by 17.4% YoY and 18.5% 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 3.7% in FY17 to 13.1% in FY18.

PRAKASH INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 21,735 29,348 35.0%
Other income Rs m 33 148 346.1%
Total Revenues Rs m 21,768 29,496 35.5%
Gross profit Rs m 2,612 5,811 122.5%
Depreciation Rs m 1,030 1,209 17.4%
Interest Rs m 731 866 18.5%
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 % 12.0 19.8
Effective tax rate % 8.4 0.5
Net profit margin % 3.7 13.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 -18.9%.
  • Long-term debt stood at Rs 6 billion as compared to Rs 6 billion during FY17, a growth of 4.2%.
  • Current assets rose 28% and stood at Rs 5 billion, while fixed assets rose 13% and stood at Rs 31 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 39 billion as against Rs 34 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 27,361 23.2
 
Current Liabilities Rs m 5,563 4,513 -18.9
Long-term Debt Rs m 5,768 6,009 4.2
Total Liabilities Rs m 34,161 38,926 13.9
 
Current assets Rs m 4,133 5,293 28.1
Fixed Assets Rs m 27,196 30,673 12.8
Total Assets Rs m 34,161 38,926 13.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 -6.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 140.0, stands at 3.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.7 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 156.3 187.1
TTM Earnings per share Rs 5.8 24.6
Diluted earnings per share Rs 6.0 28.7
Price to Cash Flow x 10.6 3.7
TTM P/E ratio x 4.0 3.9
Price / Book Value ratio x 0.4 1.0
Market Cap Rs m 19,460 18,822
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 PRAKASH INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x 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 deteriorated and stood at 5.5x 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 14.1% 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 14.2% 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 12.1% during FY18, from 4.5% 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 1.2
Debtors’ Days Days 13 12
Interest coverage x 2.2 5.5
Debt to equity ratio x 0.3 0.2
Return on assets % 4.5 12.1
Return on equity % 3.6 14.1
Return on capital employed % 5.8 14.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 110.1 to Rs 140.0, registering a gain of Rs 29.9 or around 27.1%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 21,863.7 (down 0.3%). Over the last one year it has moved up from 17,651.9 to 21,863.7, a gain of 4,212 points (up 23.9%).

Overall, the S&P BSE SENSEX is up 22.4% over the year.

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

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Related Views on News

PRAKASH INDUSTRIES Announces Quarterly Results (2QFY20); Net Profit Down 74.7% (Quarterly Result Update)

Nov 12, 2019 | Updated on Nov 12, 2019

For the quarter ended September 2019, PRAKASH INDUSTRIES has posted a net profit of Rs 331 m (down 74.7% YoY). Sales on the other hand came in at Rs 8 bn (down 19.8% YoY). Read on for a complete analysis of PRAKASH INDUSTRIES's quarterly results.

PRAKASH INDUSTRIES Announces Quarterly Results (1QFY20); Net Profit Down 78.1% (Quarterly Result Update)

Aug 13, 2019 | Updated on Aug 13, 2019

For the quarter ended June 2019, PRAKASH INDUSTRIES has posted a net profit of Rs 370 m (down 78.1% YoY). Sales on the other hand came in at Rs 8 bn (down 16.2% YoY). Read on for a complete analysis of PRAKASH INDUSTRIES's quarterly results.

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