PSP PROJECTS LTD 2017-18 Annual Report Analysis

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PSP PROJECTS LTD 2017-18 Annual Report Analysis
Thu, 3 Jan

PSP PROJECTS LTD 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.

PSP PROJECTS LTD Income Statement Analysis

  • Operating income during the year rose 69.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 55.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.9% in FY18 as against 15.1% in FY17.
  • Depreciation charges increased by 45.0% and finance costs increased by 17.0% YoY, respectively.
  • Other income grew by 38.5% YoY.
  • Net profit for the year grew by 58.6% YoY.
  • Net profit margins during the year declined from 9.1% in FY17 to 8.6% in FY18.

PSP PROJECTS LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 4,448 7,516 69.0%
Other income Rs m 134 186 38.5%
Total Revenues Rs m 4,582 7,703 68.1%
Gross profit Rs m 671 1,046 55.9%
Depreciation Rs m 79 115 45.0%
Interest Rs m 79 93 17.0%
Profit before tax Rs m 647 1,025 58.4%
Tax Rs m 231 364 58.1%
Profit after tax Rs m 416 660 58.6%
Gross profit margin % 15.1 13.9
Effective tax rate % 35.6 35.6
Net profit margin % 9.1 8.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PSP PROJECTS LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 3 billion as compared to Rs 2 billion in FY17, thereby witnessing an increase of 36.0%.
  • Long-term debt down at Rs 17 million as compared to Rs 34 million during FY17, a fall of 49.9%.
  • Current assets rose 106% and stood at Rs 4 billion, while fixed assets rose 53% and stood at Rs 798 million in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 6 billion as against Rs 3 billion during FY17, thereby witnessing a growth of 83%.

PSP PROJECTS LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 1,047 3,014 188.0
 
Current Liabilities Rs m 2,186 2,971 36.0
Long-term Debt Rs m 34 17 -49.9
Total Liabilities Rs m 3,281 6,013 83.3
 
Current assets Rs m 2,073 4,267 105.9
Fixed Assets Rs m 521 798 53.2
Total Assets Rs m 3,281 6,013 83.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PSP PROJECTS LTD Cash Flow Statement Analysis

  • PSP PROJECTS LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 681 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion, an improvement of 3,349.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 813 million, an improvement of 269% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 287 million from the Rs 110 million net cash flows seen during FY17.

PSP PROJECTS LTD 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 -75 681 -
Cash Flow from Investing Activities Rs m -35 -1,207 -
Cash Flow from Financing Activities Rs m 220 813 269.4%
Net Cash Flow Rs m 110 287 161.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for PSP PROJECTS LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.3, an improvement from the EPS of Rs 14.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 412.0, stands at 19.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 1.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 19.1 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 154.4 208.8
TTM Earnings per share Rs 14.4 18.3
Diluted earnings per share Rs 11.6 18.3
Price to Cash Flow x 24.0 19.1
TTM P/E ratio x 15.5 19.3
Price / Book Value ratio x 0.0 4.7
Market Cap Rs m 11,866 14,832
Dividends per share (Unadj.) Rs 2.5 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for PSP PROJECTS LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 0.9x 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 12.0x during FY18, from 9.1x 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 declined and down at 21.9% during FY18, from 39.8% 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 declined and down at 36.9% during FY18, from 67.2% 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 declined and down at 12.5% during FY18, from 15.1% 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 0.9 1.4
Debtors’ Days Days 48 60
Interest coverage x 9.1 12.0
Debt to equity ratio x 0.0 0.0
Return on assets % 15.1 12.5
Return on equity % 39.8 21.9
Return on capital employed % 67.2 36.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how PSP PROJECTS LTD has performed over the last 5 years, please visit here.

PSP PROJECTS LTD Share Price Performance

Over the last one year, PSP PROJECTS LTD share price has moved up from Rs 510.4 to Rs 412.0, registering a loss of Rs 98.4 or around 19.3%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 1,812.4 (down 0.1%). Over the last one year it has moved down from 2,605.5 to 1,812.4, a loss of 793 points (down 30.4%).

Overall, the S&P BSE SENSEX is up 5.9% over the year.

(To know more, check out historical annual results for PSP PROJECTS LTD and quarterly results for PSP PROJECTS LTD)

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