PATELS AIRTEMP 2017-18 Annual Report Analysis

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PATELS AIRTEMP 2017-18 Annual Report Analysis
Thu, 19 Sep

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 16.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 13.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.5% in FY18 as against 12.7% in FY17.
  • Depreciation charges increased by 0.4% and finance costs increased by 60.4% YoY, respectively.
  • Other income declined by 15.7% YoY.
  • Net profit for the year grew by 8.8% YoY.
  • Net profit margins during the year declined from 5.8% in FY17 to 5.4% in FY18.

PATELS AIRTEMP Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 1,362 1,583 16.2%
Other income Rs m 5 4 -15.7%
Total Revenues Rs m 1,367 1,587 16.1%
Gross profit Rs m 173 197 13.7%
Depreciation Rs m 26 26 0.4%
Interest Rs m 30 49 60.4%
Profit before tax Rs m 122 127 3.7%
Tax Rs m 43 41 -5.8%
Profit after tax Rs m 79 86 8.8%
Gross profit margin % 12.7 12.5
Effective tax rate % 35.4 32.2
Net profit margin % 5.8 5.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 214 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 1,282 1,481 15.5
 
Current assets Rs m 1,046 1,264 20.9
Fixed Assets Rs m 233 214 -8.3
Total Assets Rs m 1,282 1,481 15.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PATELS AIRTEMP Cash Flow Statement Analysis

  • PATELS AIRTEMP's cash flow from operating activities (CFO) during FY18 stood at Rs -55 million, an improvement of 71.0% 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 22 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -41 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 -55 -
Cash Flow from Investing Activities Rs m -15 -7 -
Cash Flow from Financing Activities Rs m 106 22 -79.4%
Net Cash Flow Rs m 59 -41 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 104.9, stands at 6.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.7 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 268.5 312.1
TTM Earnings per share Rs 15.6 17.0
Diluted earnings per share Rs 15.6 17.0
Price to Cash Flow x 5.1 4.7
TTM P/E ratio x 6.2 6.2
Price / Book Value ratio x 1.3 1.3
Market Cap Rs m 532 532
Dividends per share (Unadj.) Rs 2.5 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 21.4% 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 152 144
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 21.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 142.2 to Rs 104.9, registering a loss of Rs 37.3 or around 26.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 16,779.3 (down 1.1%). Over the last one year it has moved down from 18,168.6 to 16,779.3, a loss of 1,389 points (down 7.6%).

Overall, the S&P BSE SENSEX is down 2.8% over the year.

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

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