PTC INDIA 2017-18 Annual Report Analysis

Sat, 31 Mar

PTC INDIA 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.

PTC INDIA Income Statement Analysis

• Operating income during the year rose 28.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 17.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.9% in FY18 as against 9.1% in FY17.
• Depreciation charges increased by 358.8% and finance costs increased by 17.9% YoY, respectively.
• Other income declined by 27.4% YoY.
• Net profit for the year declined by 67.4% YoY.
• Net profit margins during the year declined from 3.3% in FY17 to 0.8% in FY18.

PTC INDIA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	153,106	196,394	28.3%
Other income	Rs m	2,029	1,474	-27.4%
Total Revenues	Rs m	155,135	197,868	27.5%
Gross profit	Rs m	13,926	11,541	-17.1%
Depreciation	Rs m	212	974	358.8%
Interest	Rs m	8,024	9,463	17.9%
Profit before tax	Rs m	7,719	2,577	-66.6%
Tax	Rs m	2,660	928	-65.1%
Profit after tax	Rs m	5,058	1,649	-67.4%
Gross profit margin	%	9.1	5.9
Effective tax rate	%	34.5	36.0
Net profit margin	%	3.3	0.8

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PTC INDIA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 71 billion as compared to Rs 67 billion in FY17, thereby witnessing an increase of 5.9%.
• Long-term debt stood at Rs 77 billion as compared to Rs 65 billion during FY17, a growth of 17.6%.
• Current assets fell 2% and stood at Rs 49 billion, while fixed assets rose 8% and stood at Rs 140 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 190 billion as against Rs 181 billion during FY17, thereby witnessing a growth of 5%.

PTC INDIA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	38,550	37,189	-3.5
Current Liabilities	Rs m	67,315	71,256	5.9
Long-term Debt	Rs m	65,394	76,928	17.6
Total Liabilities	Rs m	180,544	189,766	5.1
Current assets	Rs m	50,250	49,468	-1.6
Fixed Assets	Rs m	130,291	140,295	7.7
Total Assets	Rs m	180,544	189,766	5.1

PTC INDIA Cash Flow Statement Analysis

• PTC INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs -14 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 13 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 891 million from the Rs 907 million net cash flows seen during FY17.

PTC INDIA 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	1,112	-14,376	-
Cash Flow from Investing Activities	Rs m	-13,739	2,492	-
Cash Flow from Financing Activities	Rs m	13,534	12,776	-5.6%
Net Cash Flow	Rs m	907	891	-1.7%

Current Valuations for PTC INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.6, an decline from the EPS of Rs 17.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 87.1, stands at 8.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 12.0 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	517.2	663.5
TTM Earnings per share	Rs	17.1	5.6
Diluted earnings per share	Rs	17.1	5.6
Price to Cash Flow	x	5.2	12.0
TTM P/E ratio	x	9.5	8.1
Price / Book Value ratio	x	0.6	0.8
Market Cap	Rs m	22,955	31,517
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for PTC INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY18, from 0.7x 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 1.3x during FY18, from 2.0x 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 4.4% during FY18, from 13.1% 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 10.6% during FY18, from 15.1% 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 5.9% during FY18, from 7.2% 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	0.7	0.7
Debtors’ Days	Days	8	6
Interest coverage	x	2.0	1.3
Debt to equity ratio	x	1.7	2.1
Return on assets	%	7.2	5.9
Return on equity	%	13.1	4.4
Return on capital employed	%	15.1	10.6

To see how PTC INDIA has performed over the last 5 years, please visit here.

PTC INDIA Share Price Performance

Over the last one year, PTC INDIA share price has moved down from Rs 92.9 to Rs 87.1, registering a loss of Rs 5.8 or around 6.2%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,125.8 (down 1.1%). Over the last one year it has moved down from 2,274.4 to 2,125.8, a loss of 149 points (down 6.5%).

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

(To know more, check out historical annual results for PTC INDIA and quarterly results for PTC INDIA)

Read: Latest Annual Report Analysis of PTC INDIA