RAJESH EXPORTS 2017-18 Annual Report Analysis

Sat, 31 Mar

RAJESH EXPORTS 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.

RAJESH EXPORTS Income Statement Analysis

• Operating income during the year fell 22.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 1.0% in FY18 as against 0.7% in FY17.
• Depreciation charges increased by 5.2% and finance costs increased by 24.7% YoY, respectively.
• Other income grew by 30.0% YoY.
• Net profit for the year grew by 1.8% YoY.
• Net profit margins during the year grew from 0.5% in FY17 to 0.7% in FY18.

RAJESH EXPORTS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	2,421,320	1,876,861	-22.5%
Other income	Rs m	477	620	30.0%
Total Revenues	Rs m	2,421,797	1,877,481	-22.5%
Gross profit	Rs m	17,501	18,844	7.7%
Depreciation	Rs m	646	680	5.2%
Interest	Rs m	4,303	5,367	24.7%
Profit before tax	Rs m	13,029	13,418	3.0%
Tax	Rs m	593	759	28.0%
Profit after tax	Rs m	12,436	12,659	1.8%
Gross profit margin	%	0.7	1.0
Effective tax rate	%	4.6	5.7
Net profit margin	%	0.5	0.7

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RAJESH EXPORTS Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 160 billion as compared to Rs 178 billion in FY17, thereby witnessing an decrease of -9.8%.
• Current assets fell 3% and stood at Rs 212 billion, while fixed assets rose 5% and stood at Rs 24 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 235 billion as against Rs 241 billion during FY17, thereby witnessing a fall of 2%.

RAJESH EXPORTS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	58,841	71,746	21.9
Current Liabilities	Rs m	177,715	160,289	-9.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	241,309	235,351	-2.5
Current assets	Rs m	218,746	211,710	-3.2
Fixed Assets	Rs m	22,564	23,641	4.8
Total Assets	Rs m	241,309	235,351	-2.5

RAJESH EXPORTS Cash Flow Statement Analysis

• RAJESH EXPORTS's cash flow from operating activities (CFO) during FY18 stood at Rs -29 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion, an improvement of 89.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 26 billion, an improvement of 392% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -4 billion from the Rs 28 billion net cash flows seen during FY17.

RAJESH EXPORTS 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	24,738	-28,696	-
Cash Flow from Investing Activities	Rs m	-812	-1,541	-
Cash Flow from Financing Activities	Rs m	5,280	25,958	391.6%
Net Cash Flow	Rs m	27,773	-3,706	-

Current Valuations for RAJESH EXPORTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.9, an improvement from the EPS of Rs 42.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 734.3, stands at 17.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 16.1 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	8,200.6	6,356.6
TTM Earnings per share	Rs	42.1	42.9
Diluted earnings per share	Rs	42.1	42.9
Price to Cash Flow	x	13.7	16.1
TTM P/E ratio	x	14.4	17.1
Price / Book Value ratio	x	2.7	3.0
Market Cap	Rs m	157,410	215,141
Dividends per share (Unadj.)	Rs	1.1	1.0

Ratio Analysis for RAJESH EXPORTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY18, from 1.2x 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 3.5x during FY18, from 4.0x 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 17.6% during FY18, from 21.1% 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 26.2% during FY18, from 29.5% 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 7.7% during FY18, from 6.9% 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	1.2	1.3
Debtors’ Days	Days	76	78
Interest coverage	x	4.0	3.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.9	7.7
Return on equity	%	21.1	17.6
Return on capital employed	%	29.5	26.2

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

RAJESH EXPORTS Share Price Performance

Over the last one year, RAJESH EXPORTS share price has moved up from Rs 605.8 to Rs 734.3, registering a gain of Rs 128.5 or around 21.2%.

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

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

Read: Latest Annual Report Analysis of RAJESH EXPORTS