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RICO AUTO 2017-18 Annual Report Analysis

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RICO AUTO 2017-18 Annual Report Analysis
Tue, 18 Dec

RICO AUTO 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.

RICO AUTO Income Statement Analysis

  • Operating income during the year rose 16.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 17.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.8% in FY18 as against 10.7% in FY17.
  • Depreciation charges increased by 16.4% and finance costs increased by 12.1% YoY, respectively.
  • Other income grew by 21.3% YoY.
  • Net profit for the year grew by 12.3% YoY.
  • Net profit margins during the year declined from 4.9% in FY17 to 4.7% in FY18.

RICO AUTO Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 10,379 12,093 16.5%
Other income Rs m 133 162 21.3%
Total Revenues Rs m 10,513 12,255 16.6%
Gross profit Rs m 1,114 1,311 17.7%
Depreciation Rs m 463 539 16.4%
Interest Rs m 167 187 12.1%
Profit before tax Rs m 617 746 21.0%
Tax Rs m 117 121 3.3%
Profit after tax Rs m 517 580 12.3%
Gross profit margin % 10.7 10.8
Effective tax rate % 19.0 16.2
Net profit margin % 4.9 4.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RICO AUTO Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 4 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 23.4%.
  • Long-term debt down at Rs 631 million as compared to Rs 673 million during FY17, a fall of 6.2%.
  • Current assets rose 20% and stood at Rs 4 billion, while fixed assets rose 9% and stood at Rs 5 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 11 billion as against Rs 10 billion during FY17, thereby witnessing a growth of 12%.

RICO AUTO Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 5,237 5,633 7.5
 
Current Liabilities Rs m 3,346 4,127 23.4
Long-term Debt Rs m 673 631 -6.2
Total Liabilities Rs m 9,658 10,777 11.6
 
Current assets Rs m 3,689 4,416 19.7
Fixed Assets Rs m 4,724 5,152 9.1
Total Assets Rs m 9,658 10,777 11.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RICO AUTO Cash Flow Statement Analysis

  • RICO AUTO's cash flow from operating activities (CFO) during FY18 stood at Rs 856 million, an improvement of 13.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -789 million, an improvement of 18.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -11 million, an improvement of 87% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 65 million from the Rs -12 million net cash flows seen during FY17.

RICO AUTO 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 752 856 13.9%
Cash Flow from Investing Activities Rs m -667 -789 -
Cash Flow from Financing Activities Rs m -83 -11 -
Net Cash Flow Rs m -12 65 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for RICO AUTO

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.3, an improvement from the EPS of Rs 3.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 69.4, stands at 14.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.6 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 76.7 89.4
TTM Earnings per share Rs 3.8 4.3
Diluted earnings per share Rs 3.8 4.3
Price to Cash Flow x 9.9 8.6
TTM P/E ratio x 14.9 14.9
Price / Book Value ratio x 1.4 1.9
Market Cap Rs m 9,382 9,382
Dividends per share (Unadj.) Rs 0.8 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for RICO AUTO

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 1.1x 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 5.0x during FY18, from 4.7x 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 10.3% 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 14.2% during FY18, from 13.5% 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 7.1% during FY18, from 7.1% 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 1.1 1.1
Debtors’ Days Days 58 69
Interest coverage x 4.7 5.0
Debt to equity ratio x 0.1 0.1
Return on assets % 7.1 7.1
Return on equity % 9.9 10.3
Return on capital employed % 13.5 14.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

RICO AUTO Share Price Performance

Over the last one year, RICO AUTO share price has moved up from Rs 96.0 to Rs 69.4, registering a loss of Rs 26.6 or around 27.7%.

Overall, the S&P BSE SENSEX is up 7.4% over the year.

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

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