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PRIME SECURITIES 2017-18 Annual Report Analysis

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PRIME SECURITIES 2017-18 Annual Report Analysis
Wed, 8 May

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 increased by 140.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 66.5% in FY18 as against 37.6% in FY17.
  • Depreciation charges increased by 15.4% increased by 0.0% 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 68.5% in FY17 to 59.6% 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 64 154 140.8%
Depreciation Rs m 1 2 15.4%
Interest Rs m 0 0 0.0%
Profit before tax Rs m 89 161 81.9%
Tax Rs m 59 28 -52.1%
Profit after tax Rs m 134 143 6.7%
Gross profit margin % 37.6 66.5
Effective tax rate % 67.1 17.7
Net profit margin % 68.5 59.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PRIME SECURITIES Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 96 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 96.7%.
  • Current assets fell 17% and stood at Rs 120 million, while fixed assets fell 2% and stood at Rs 29 million in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 217 million as against Rs 224 million during FY17, thereby witnessing a fall of 3%.

PRIME SECURITIES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m -43 101 -334.3
 
Current Liabilities Rs m 228 96 -58.2
Long-term Debt Rs m 21 1 -96.7
Total Liabilities Rs m 224 217 -3.3
 
Current assets Rs m 145 120 -17.1
Fixed Assets Rs m 29 29 -1.9
Total Assets Rs m 224 217 -3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 205 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: Company Reports, Regulatory Filings, 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 40.1, stands at 7.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 12.2 times, while the price to sales ratio stands at 5.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.9 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 5.1 5.4
Price to Cash Flow x 34.9 7.9
TTM P/E ratio x 7.1 7.1
Price / Book Value ratio x -15.4 12.2
Market Cap Rs m 1,062 1,060
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 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 806.0x during FY18, from 443.5x 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 141.4% during FY18, from -310.4% 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 168.5% during FY18, from -868.6% 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 66.1% 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 92 21
Interest coverage x 443.5 806.0
Debt to equity ratio x -0.5 0.0
Return on assets % 59.9 66.1
Return on equity % -310.4 141.4
Return on capital employed % -868.6 168.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 44.2 to Rs 40.1, registering a loss of Rs 4.1 or around 9.3%.

Overall, the S&P BSE SENSEX is up 7.8% over the year.

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

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