PVR 2017-18 Annual Report Analysis

Sat, 31 Mar

PVR 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.

PVR Income Statement Analysis

• Operating income during the year rose 10.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 32.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.1% in FY18 as against 14.2% in FY17.
• Depreciation charges increased by 11.1% and finance costs increased by 3.9% YoY, respectively.
• Other income declined by 52.2% YoY.
• Net profit for the year grew by 30.2% YoY.
• Net profit margins during the year grew from 4.5% in FY17 to 5.3% in FY18.

PVR Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	21,194	23,341	10.1%
Other income	Rs m	714	342	-52.2%
Total Revenues	Rs m	21,909	23,683	8.1%
Gross profit	Rs m	3,004	3,984	32.6%
Depreciation	Rs m	1,384	1,537	11.1%
Interest	Rs m	806	837	3.9%
Profit before tax	Rs m	1,528	1,952	27.7%
Tax	Rs m	570	704	23.6%
Profit after tax	Rs m	958	1,248	30.2%
Gross profit margin	%	14.2	17.1
Effective tax rate	%	37.3	36.1
Net profit margin	%	4.5	5.3

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PVR Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 7 billion as compared to Rs 6 billion in FY17, thereby witnessing an increase of 15.4%.
• Long-term debt down at Rs 6 billion as compared to Rs 6 billion during FY17, a fall of 7.2%.
• Current assets rose 6% and stood at Rs 3 billion, while fixed assets rose 7% and stood at Rs 20 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 23 billion as against Rs 22 billion during FY17, thereby witnessing a growth of 7%.

PVR Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	9,650	10,723	11.1
Current Liabilities	Rs m	6,071	7,005	15.4
Long-term Debt	Rs m	6,050	5,616	-7.2
Total Liabilities	Rs m	21,824	23,332	6.9
Current assets	Rs m	2,804	2,978	6.2
Fixed Assets	Rs m	19,020	20,355	7.0
Total Assets	Rs m	21,824	23,332	6.9

PVR Cash Flow Statement Analysis

• PVR's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion, an improvement of 39.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -660 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 177 million from the Rs -3 billion net cash flows seen during FY17.

PVR 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	3,196	4,463	39.6%
Cash Flow from Investing Activities	Rs m	-6,321	-4,054	-
Cash Flow from Financing Activities	Rs m	602	-660	-
Net Cash Flow	Rs m	-2,523	177	-

Current Valuations for PVR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.7, an improvement from the EPS of Rs 20.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,216.2, stands at 59.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 23.5 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	453.5	499.4
TTM Earnings per share	Rs	20.5	26.7
Diluted earnings per share	Rs	15.7	20.5
Price to Cash Flow	x	37.3	23.5
TTM P/E ratio	x	91.2	59.2
Price / Book Value ratio	x	5.4	6.1
Market Cap	Rs m	51,681	65,544
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for PVR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY18, from 0.5x 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 improved and stood at 3.3x during FY18, from 2.9x 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 improved and stood at 11.6% during FY18, from 9.9% 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 17.1% during FY18, from 14.9% 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 8.9% during FY18, from 8.1% 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	0.5	0.4
Debtors’ Days	Days	176	243
Interest coverage	x	2.9	3.3
Debt to equity ratio	x	0.6	0.5
Return on assets	%	8.1	8.9
Return on equity	%	9.9	11.6
Return on capital employed	%	14.9	17.1

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

PVR Share Price Performance

Over the last one year, PVR share price has moved down from Rs 1,432.7 to Rs 1,216.2, registering a loss of Rs 216.5 or around 15.1%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 6,513.3 (down 0.7%). Over the last one year it has moved up from 5,771.5 to 6,513.3, a gain of 742 points (up 12.9%).

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

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

Read: Latest Annual Report Analysis of PVR INOX