RADICO KHAITAN 2017-18 Annual Report Analysis

Sat, 31 Mar

RADICO KHAITAN 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.

RADICO KHAITAN Income Statement Analysis

• Operating income during the year rose 74.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.6% YoY during the fiscal. Operating profit margins witnessed a growth and down at 10.2% in FY18 as against 14.0% in FY17.
• Depreciation charges decreased by 1.9% and finance costs decreased by 15.0% YoY, respectively.
• Other income grew by 45.9% YoY.
• Net profit for the year grew by 54.2% YoY.
• Net profit margins during the year grew from 5.3% in FY17 to 4.7% in FY18.

RADICO KHAITAN Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	-15,082	-26,248	74.0%
Other income	Rs m	205	299	45.9%
Total Revenues	Rs m	-14,877	-25,949	74.4%
Gross profit	Rs m	2,108	2,669	26.6%
Depreciation	Rs m	417	409	-1.9%
Interest	Rs m	807	686	-15.0%
Profit before tax	Rs m	1,089	1,873	72.1%
Tax	Rs m	288	638	121.8%
Profit after tax	Rs m	801	1,235	54.2%
Gross profit margin	%	-14.0	-10.2
Effective tax rate	%	26.4	34.1
Net profit margin	%	-5.3	-4.7

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RADICO KHAITAN Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 10 billion as compared to Rs 10 billion in FY17, thereby witnessing an decrease of -5.7%.
• Long-term debt down at Rs 344 million as compared to Rs 1 billion during FY17, a fall of 66.7%.
• Current assets rose 6% and stood at Rs 12 billion, while fixed assets fell 6% and stood at Rs 10 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 22 billion as against Rs 22 billion during FY17, thereby witnessing a growth of 1%.

RADICO KHAITAN Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	10,433	11,564	10.8
Current Liabilities	Rs m	10,085	9,513	-5.7
Long-term Debt	Rs m	1,033	344	-66.7
Total Liabilities	Rs m	22,344	22,459	0.5
Current assets	Rs m	11,639	12,389	6.4
Fixed Assets	Rs m	10,705	10,069	-5.9
Total Assets	Rs m	22,344	22,459	0.5

RADICO KHAITAN Cash Flow Statement Analysis

• RADICO KHAITAN's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion, an improvement of 25.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -208 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 25 million from the Rs 210 million net cash flows seen during FY17.

RADICO KHAITAN 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	2,520	3,158	25.3%
Cash Flow from Investing Activities	Rs m	30	-208	-
Cash Flow from Financing Activities	Rs m	-2,340	-2,926	-
Net Cash Flow	Rs m	210	25	-88.4%

Current Valuations for RADICO KHAITAN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.3, an improvement from the EPS of Rs 6.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 331.1, stands at 35.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at -1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 21.3 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	-113.4	-196.9
TTM Earnings per share	Rs	6.0	9.3
Diluted earnings per share	Rs	6.0	9.2
Price to Cash Flow	x	15.1	21.3
TTM P/E ratio	x	22.9	35.8
Price / Book Value ratio	x	1.5	3.0
Market Cap	Rs m	15,632	34,990
Dividends per share (Unadj.)	Rs	0.8	1.0

Ratio Analysis for RADICO KHAITAN

• 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 improved and stood at 3.7x during FY18, from 2.3x 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 10.7% during FY18, from 7.7% 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 21.5% during FY18, from 16.5% 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 8.6% 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	1.2	1.3
Debtors’ Days	Days	-1,510	-876
Interest coverage	x	2.3	3.7
Debt to equity ratio	x	0.1	0.0
Return on assets	%	7.2	8.6
Return on equity	%	7.7	10.7
Return on capital employed	%	16.5	21.5

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

RADICO KHAITAN Share Price Performance

Over the last one year, RADICO KHAITAN share price has moved up from Rs 137.5 to Rs 331.1, registering a gain of Rs 193.6 or around 140.8%.

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

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

Read: Latest Annual Report Analysis of RADICO KHAITAN