PURAVANKARA 2017-18 Annual Report Analysis

Sat, 31 Mar

PURAVANKARA 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.

PURAVANKARA Income Statement Analysis

• Operating income during the year rose 0.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 24.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.7% in FY18 as against 29.1% in FY17.
• Depreciation charges decreased by 9.2% and finance costs decreased by 13.2% YoY, respectively.
• Other income grew by 48.8% YoY.
• Net profit for the year declined by 21.9% YoY.
• Net profit margins during the year declined from 8.7% in FY17 to 6.7% in FY18.

PURAVANKARA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	14,071	14,149	0.6%
Other income	Rs m	605	900	48.8%
Total Revenues	Rs m	14,676	15,049	2.5%
Gross profit	Rs m	4,092	3,075	-24.8%
Depreciation	Rs m	165	150	-9.2%
Interest	Rs m	2,895	2,513	-13.2%
Profit before tax	Rs m	1,637	1,312	-19.8%
Tax	Rs m	419	361	-13.8%
Profit after tax	Rs m	1,218	951	-21.9%
Gross profit margin	%	29.1	21.7
Effective tax rate	%	25.6	27.5
Net profit margin	%	8.7	6.7

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PURAVANKARA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 43 billion as compared to Rs 36 billion in FY17, thereby witnessing an increase of 18.7%.
• Long-term debt down at Rs 1 billion as compared to Rs 3 billion during FY17, a fall of 54.5%.
• Current assets rose 6% and stood at Rs 60 billion, while fixed assets rose 72% and stood at Rs 10 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 71 billion as against Rs 62 billion during FY17, thereby witnessing a growth of 13%.

PURAVANKARA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	23,662	23,932	1.1
Current Liabilities	Rs m	36,095	42,850	18.7
Long-term Debt	Rs m	3,032	1,380	-54.5
Total Liabilities	Rs m	62,462	70,520	12.9
Current assets	Rs m	56,400	60,065	6.5
Fixed Assets	Rs m	6,063	10,455	72.5
Total Assets	Rs m	62,462	70,520	12.9

PURAVANKARA Cash Flow Statement Analysis

• PURAVANKARA's cash flow from operating activities (CFO) during FY18 stood at Rs -290 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 558 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 108 million, an improvement of 103% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 376 million from the Rs -2 billion net cash flows seen during FY17.

PURAVANKARA 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	-2,773	-290	-
Cash Flow from Investing Activities	Rs m	5,208	558	-89.3%
Cash Flow from Financing Activities	Rs m	-4,318	108	-
Net Cash Flow	Rs m	-1,883	376	-

Current Valuations for PURAVANKARA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.0, an decline from the EPS of Rs 5.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 138.9, stands at 36.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 25.8 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	59.3	59.7
TTM Earnings per share	Rs	5.1	4.0
Diluted earnings per share	Rs	5.1	4.0
Price to Cash Flow	x	11.5	25.8
TTM P/E ratio	x	11.5	36.4
Price / Book Value ratio	x	0.5	1.2
Market Cap	Rs m	12,761	28,405
Dividends per share (Unadj.)	Rs	2.3	1.6

Ratio Analysis for PURAVANKARA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY18, from 1.6x 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 deteriorated and stood at 1.5x during FY18, from 1.6x 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 4.0% during FY18, from 5.1% 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 15.1% during FY18, from 17.0% 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 4.9% during FY18, from 6.6% 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	1.6	1.4
Debtors’ Days	Days	10	7
Interest coverage	x	1.6	1.5
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.6	4.9
Return on equity	%	5.1	4.0
Return on capital employed	%	17.0	15.1

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

PURAVANKARA Share Price Performance

Over the last one year, PURAVANKARA share price has moved up from Rs 67.2 to Rs 138.9, registering a gain of Rs 71.7 or around 106.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,229.9 (down 1.1%). Over the last one year it has moved up from 1,600.0 to 2,229.9, a gain of 630 points (up 39.4%).

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

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

Read: Latest Annual Report Analysis of PURAVANKARA