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P&G HYGIENE 2017-18 Annual Report Analysis

Sat, 30 Jun

P&G HYGIENE has announced its results for the year ended June 2018. Let us have a look at the detailed performance review of the company during FY17-18.

P&G HYGIENE Income Statement Analysis

• Operating income during the year rose 10.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.1% in FY as against 29.8% in FY.
• Depreciation charges decreased by 12.3% and finance costs decreased by 48.9% YoY, respectively.
• Other income declined by 69.6% YoY.
• Net profit for the year declined by 13.4% YoY.
• Net profit margins during the year declined from 19.5% in FY to 15.3% in FY.

P&G HYGIENE Income Statement 2017-18

No. of Mths Year Ending		12 Jun-17*	12 Jun-18*	% Change
Net Sales	Rs m	22,216	24,553	10.5%
Other income	Rs m	791	241	-69.6%
Total Revenues	Rs m	23,007	24,794	7.8%
Gross profit	Rs m	6,629	6,154	-7.2%
Depreciation	Rs m	597	524	-12.3%
Interest	Rs m	104	53	-48.9%
Profit before tax	Rs m	6,718	5,818	-13.4%
Tax	Rs m	2,390	2,072	-13.3%
Profit after tax	Rs m	4,327	3,746	-13.4%
Gross profit margin	%	29.8	25.1
Effective tax rate	%	35.6	35.6
Net profit margin	%	19.5	15.3

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P&G HYGIENE Balance Sheet Analysis

• The company's current liabilities during FY down at Rs 6 billion as compared to Rs 6 billion in FY, thereby witnessing an decrease of -1.9%.
• Current assets rose 39% and stood at Rs 8 billion, while fixed assets rose 7% and stood at Rs 6 billion in FY.
• Overall, the total assets and liabilities for FY stood at Rs 14 billion as against Rs 11 billion during FY, thereby witnessing a growth of 24%.

P&G HYGIENE Balance Sheet as on June 2018

No. of Mths Year Ending		12 Jun-17*	12 Jun-18*	% Change
Networth	Rs m	5,182	7,922	52.9
Current Liabilities	Rs m	5,823	5,711	-1.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	11,339	14,024	23.7
Current assets	Rs m	6,031	8,361	38.6
Fixed Assets	Rs m	5,307	5,663	6.7
Total Assets	Rs m	11,339	14,024	23.7

P&G HYGIENE Cash Flow Statement Analysis

• P&G HYGIENE's cash flow from operating activities (CFO) during FY stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY stood at Rs -195 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY stood at Rs -1 billion, an improvement of 93% on a YoY basis.
• Overall, net cash flows for the company during FY stood at Rs 3 billion from the Rs -10 billion net cash flows seen during FY.

P&G HYGIENE Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Jun-17	Jun-18
Cash Flow from Operating Activities	Rs m	4,453	4,155	-6.7%
Cash Flow from Investing Activities	Rs m	1,493	-195	-
Cash Flow from Financing Activities	Rs m	-15,587	-1,061	-
Net Cash Flow	Rs m	-9,642	2,899	-

Current Valuations for P&G HYGIENE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 115.4, an decline from the EPS of Rs 133.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 9,901.6, stands at 85.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 40.6 times, while the price to sales ratio stands at 13.1 times.
• The company's price to cash flow (P/CF) ratio stood at 69.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Jun-17*	12 Jun-18*
Sales per share (Unadj.)	Rs	684.4	756.4
TTM Earnings per share	Rs	133.3	115.4
Diluted earnings per share	Rs	133.3	115.4
Price to Cash Flow	x	53.0	69.4
TTM P/E ratio	x	60.4	85.8
Price / Book Value ratio	x	44.9	37.4
Market Cap	Rs m	232,581	296,220
Dividends per share (Unadj.)	Rs	389.0	40.0

Ratio Analysis for P&G HYGIENE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY, from 1.0x during FY. 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 110.4x during FY, from 65.5x during FY. 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 47.3% during FY, from 83.5% during FY. 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 74.1% during FY, from 131.6% during FY. 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 27.1% during FY, from 39.1% during FY. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Jun-17*	12 Jun-18*
Current ratio	x	1.0	1.5
Debtors’ Days	Days	218	221
Interest coverage	x	65.5	110.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	39.1	27.1
Return on equity	%	83.5	47.3
Return on capital employed	%	131.6	74.1

To see how P&G HYGIENE has performed over the last 5 years, please visit here.

P&G HYGIENE Share Price Performance

Over the last one year, P&G HYGIENE share price has moved up from Rs 7,510.2 to Rs 9,443.5, registering a gain of Rs 1,933.3 or around 25.7%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 10,290.1 (down 0.4%). Over the last one year it has moved up from 9,270.3 to 10,290.1, a gain of 1,020 points (up 11.0%).

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

(To know more, check out historical annual results for P&G HYGIENE and quarterly results for P&G HYGIENE)

Read: Latest Annual Report Analysis of P&G HYGIENE