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PATELS AIRTEMP 2017-18 Annual Report Analysis
Sat, 31 Mar

PATELS AIRTEMP 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.

PATELS AIRTEMP Income Statement Analysis

  • Operating income during the year rose 27.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 13.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.5% in FY18 as against 14.0% in FY17.
  • Depreciation charges increased by 0.5% and finance costs increased by 60.6% YoY, respectively.
  • Other income declined by 15.6% YoY.
  • Net profit for the year grew by 8.8% YoY.
  • Net profit margins during the year declined from 6.4% in FY17 to 5.5% in FY18.

PATELS AIRTEMP Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 1,237 1,571 27.0%
Other income Rs m 5 4 -15.6%
Total Revenues Rs m 1,242 1,576 26.9%
Gross profit Rs m 173 197 13.4%
Depreciation Rs m 26 26 0.5%
Interest Rs m 30 49 60.6%
Profit before tax Rs m 122 126 3.3%
Tax Rs m 43 40 -6.7%
Profit after tax Rs m 79 86 8.8%
Gross profit margin % 14.0 12.5
Effective tax rate % 35.4 31.9
Net profit margin % 6.4 5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

PATELS AIRTEMP Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 637 million as compared to Rs 517 million in FY17, thereby witnessing an increase of 23.2%.
  • Long-term debt stood at Rs 80 million as compared to Rs 64 million during FY17, a growth of 23.9%.
  • Current assets rose 21% and stood at Rs 1 billion, while fixed assets fell 8% and stood at Rs 217 million in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 1 billion as against Rs 1 billion during FY17, thereby witnessing a growth of 16%.

PATELS AIRTEMP Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 671 740 10.4
 
Current Liabilities Rs m 517 637 23.2
Long-term Debt Rs m 64 80 23.9
Total Liabilities Rs m 1,281 1,481 15.5
 
Current assets Rs m 1,046 1,264 20.9
Fixed Assets Rs m 236 217 -8.1
Total Assets Rs m 1,281 1,481 15.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PATELS AIRTEMP Cash Flow Statement Analysis

  • PATELS AIRTEMP's cash flow from operating activities (CFO) during FY18 stood at Rs 82 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -7 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -115 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -40 million from the Rs 59 million net cash flows seen during FY17.

PATELS AIRTEMP 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 -32 82 -
Cash Flow from Investing Activities Rs m -15 -7 -
Cash Flow from Financing Activities Rs m 106 -115 -
Net Cash Flow Rs m 59 -40 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PATELS AIRTEMP

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.0, an improvement from the EPS of Rs 15.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 162.7, stands at 9.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.7 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 244.0 309.9
TTM Earnings per share Rs 15.6 17.0
Diluted earnings per share Rs 15.6 17.0
Price to Cash Flow x 8.8 8.7
TTM P/E ratio x 11.7 9.6
Price / Book Value ratio x 1.3 1.3
Market Cap Rs m 871 973
Dividends per share (Unadj.) Rs 2.5 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PATELS AIRTEMP

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY18, from 2.0x 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 3.6x during FY18, from 5.0x 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 11.6% during FY18, from 11.8% 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 improved and stood at 21.3% during FY18, from 20.8% 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 9.1% during FY18, from 8.5% 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 2.0 2.0
Debtors’ Days Days 167,639,460 144,918,879
Interest coverage x 5.0 3.6
Debt to equity ratio x 0.1 0.1
Return on assets % 8.5 9.1
Return on equity % 11.8 11.6
Return on capital employed % 20.8 21.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how PATELS AIRTEMP has performed over the last 5 years, please visit here.

PATELS AIRTEMP Share Price Performance

Over the last one year, PATELS AIRTEMP share price has moved down from Rs 181.2 to Rs 162.7, registering a loss of Rs 18.5 or around 10.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

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

(To know more, check out historical annual results for PATELS AIRTEMP and quarterly results for PATELS AIRTEMP)

Annual Report FAQs

What is the current share price of PATELS AIRTEMP?

PATELS AIRTEMP currently trades at Rs 380.2 per share. You can check out the latest share price performance of PATELS AIRTEMP here...

What was the revenue of PATELS AIRTEMP in FY18? How does it compare to earlier years?

The revenues of PATELS AIRTEMP stood at Rs 1,576 m in FY18, which was up 26.9% compared to Rs 1,242 m reported in FY17.

PATELS AIRTEMP's revenue has grown from Rs 1,161 m in FY16 to Rs 1,576 m in FY18.

Over the past 3 years, the revenue of PATELS AIRTEMP has grown at a CAGR of 16.5%.

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

The net profit of PATELS AIRTEMP stood at Rs 86 m in FY18, which was up 8.8% compared to Rs 79 m reported in FY17.

This compares to a net profit of Rs 71 m in FY16.

Over the past 3 years, PATELS AIRTEMP net profit has grown at a CAGR of 9.8%.

What does the cash flow statement of PATELS AIRTEMP 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 PATELS AIRTEMP reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 82 m as compared to Rs -32 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -7 m as compared to Rs -15 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -115 m as compared to Rs 106 m in FY17.

Here's the cash flow statement of PATELS AIRTEMP for the past 3 years.

(Rs m)FY16FY17FY18
From Operations80-3282
From Investments-61-15-7
From Financial Activity-181106-115
Net Cashflow-16259-40

What does the Key Ratio analysis of PATELS AIRTEMP 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 PATELS AIRTEMP reveals:

  • Operating profit margins witnessed a fall and stood at 12.5% in FY18 as against 14.0% in FY17.
  • Net profit margins declined from 6.4% in FY17 to 5.5% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.1 as compared to 0.1 in FY17.

Here's the ratio/financial analysis of PATELS AIRTEMP for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)12.914.012.5
Net Profit Margin (%)6.26.45.5
Debt to Equity Ratio (x)0.10.10.1

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