Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  


PRIME SECURITIES 2017-18 Annual Report Analysis
Sat, 31 Mar

PRIME SECURITIES 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.

PRIME SECURITIES Income Statement Analysis

  • Operating income during the year rose 36.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 2.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 71.0% in FY18 as against 99.5% in FY17.
  • Depreciation charges increased by 18.1% and finance costs decreased by 13.6% YoY, respectively.
  • Other income declined by 65.3% YoY.
  • Net profit for the year grew by 6.7% YoY.
  • Net profit margins during the year declined from 79.1% in FY17 to 61.9% in FY18.

PRIME SECURITIES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 170 231 36.3%
Other income Rs m 26 9 -65.3%
Total Revenues Rs m 196 240 22.7%
Gross profit Rs m 169 164 -2.8%
Depreciation Rs m 1 2 18.1%
Interest Rs m 0 0 -13.6%
Profit before tax Rs m 193 172 -11.4%
Tax Rs m 59 28 -52.1%
Profit after tax Rs m 134 143 6.7%
Gross profit margin % 99.5 71.0
Effective tax rate % 30.7 16.6
Net profit margin % 79.1 61.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

PRIME SECURITIES Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 95 million as compared to Rs 228 million in FY17, thereby witnessing an decrease of -58.2%.
  • Long-term debt down at Rs 1 million as compared to Rs 21 million during FY17, a fall of 96.6%.
  • Current assets fell 17% and stood at Rs 120 million, while fixed assets rose 11% and stood at Rs 87 million in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 208 million as against Rs 224 million during FY17, thereby witnessing a fall of 7%.

PRIME SECURITIES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m -43 98 -327.6
 
Current Liabilities Rs m 228 95 -58.2
Long-term Debt Rs m 21 1 -96.6
Total Liabilities Rs m 224 208 -7.3
 
Current assets Rs m 145 120 -17.1
Fixed Assets Rs m 79 87 10.7
Total Assets Rs m 224 208 -7.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PRIME SECURITIES Cash Flow Statement Analysis

  • PRIME SECURITIES's cash flow from operating activities (CFO) during FY18 stood at Rs 65 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 3 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -87 million, an improvement of 66% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -19 million from the Rs 26 million net cash flows seen during FY17.

PRIME SECURITIES 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 74 65 -12.5%
Cash Flow from Investing Activities Rs m 204 3 -98.4%
Cash Flow from Financing Activities Rs m -253 -87 -
Net Cash Flow Rs m 26 -19 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PRIME SECURITIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.4, an improvement from the EPS of Rs 5.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 47.5, stands at 10.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 15.1 times, while the price to sales ratio stands at 5.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.9 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 6.4 8.7
TTM Earnings per share Rs 5.1 5.4
Diluted earnings per share Rs 4.3 4.6
Price to Cash Flow x 7.9 8.9
TTM P/E ratio x 4.9 10.3
Price / Book Value ratio x -16.1 13.0
Market Cap Rs m 695 1,279
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PRIME SECURITIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x during FY18, from 0.6x 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 improved and stood at 903.6x during FY18, from 880.5x 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 145.5% during FY18, from -310.6% 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 173.4% during FY18, from -870.2% 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 68.9% during FY18, from 59.9% 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 0.6 1.3
Debtors’ Days Days 923 205
Interest coverage x 880.5 903.6
Debt to equity ratio x -0.5 0.0
Return on assets % 59.9 68.9
Return on equity % -310.6 145.5
Return on capital employed % -870.2 173.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how PRIME SECURITIES has performed over the last 5 years, please visit here.

PRIME SECURITIES Share Price Performance

Over the last one year, PRIME SECURITIES share price has moved up from Rs 34.5 to Rs 47.5, registering a gain of Rs 13.1 or around 37.9%.

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

(To know more, check out historical annual results for PRIME SECURITIES and quarterly results for PRIME SECURITIES)

Annual Report FAQs

What is the current share price of PRIME SECURITIES?

PRIME SECURITIES currently trades at Rs 181.7 per share. You can check out the latest share price performance of PRIME SECURITIES here...

What was the revenue of PRIME SECURITIES in FY18? How does it compare to earlier years?

The revenues of PRIME SECURITIES stood at Rs 240 m in FY18, which was up 22.7% compared to Rs 196 m reported in FY17.

PRIME SECURITIES' revenue has grown from Rs 233 m in FY16 to Rs 240 m in FY18.

Over the past 3 years, the revenue of PRIME SECURITIES has grown at a CAGR of 1.6%.

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

The net profit of PRIME SECURITIES stood at Rs 143 m in FY18, which was up 6.7% compared to Rs 134 m reported in FY17.

This compares to a net profit of Rs 142 m in FY16.

Over the past 3 years, PRIME SECURITIES net profit has grown at a CAGR of 0.4%.

What does the cash flow statement of PRIME SECURITIES 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 PRIME SECURITIES reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 65 m as compared to Rs 74 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs 3 m as compared to Rs 204 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -87 m as compared to Rs -253 m in FY17.

Here's the cash flow statement of PRIME SECURITIES for the past 3 years.

(Rs m)FY16FY17FY18
From Operations-47465
From Investments892043
From Financial Activity-71-253-87
Net Cashflow1426-19

What does the Key Ratio analysis of PRIME SECURITIES 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 PRIME SECURITIES reveals:

  • Operating profit margins witnessed a fall and stood at 71.0% in FY18 as against 99.5% in FY17.
  • Net profit margins declined from 79.1% in FY17 to 61.9% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to -0.5 in FY17.

Here's the ratio/financial analysis of PRIME SECURITIES for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)27.099.571.0
Net Profit Margin (%)136.479.161.9
Debt to Equity Ratio (x)-9.9-0.50.0

Read: Latest Annual Report Analysis of PRIME SECURITIES

Equitymaster requests your view! Post a comment on "PRIME SECURITIES 2017-18 Annual Report Analysis". Click here!