RADICO KHAITAN 2017-18 Annual Report Analysis

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RADICO KHAITAN 2017-18 Annual Report Analysis
Fri, 21 Dec

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 8.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 27.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.8% in FY18 as against 12.6% in FY17.
  • Depreciation charges decreased by 1.9% and finance costs decreased by 15.1% YoY, respectively.
  • Other income grew by 35.7% YoY.
  • Net profit for the year grew by 54.6% YoY.
  • Net profit margins during the year grew from 4.7% in FY17 to 6.7% in FY18.

RADICO KHAITAN Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 16,799 18,228 8.5%
Other income Rs m 197 267 35.7%
Total Revenues Rs m 16,996 18,494 8.8%
Gross profit Rs m 2,113 2,698 27.7%
Depreciation Rs m 417 409 -1.9%
Interest Rs m 804 682 -15.1%
Profit before tax Rs m 1,089 1,873 72.1%
Tax Rs m 288 638 121.8%
Profit after tax Rs m 802 1,240 54.6%
Gross profit margin % 12.6 14.8
Effective tax rate % 26.4 34.1
Net profit margin % 4.7 6.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 0% and stood at Rs 7 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 10,441 11,569 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 7,060 7,057 0.0
Total Assets Rs m 22,344 22,459 0.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 25.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -213 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 211 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 3,163 25.5%
Cash Flow from Investing Activities Rs m 30 -213 -
Cash Flow from Financing Activities Rs m -2,340 -2,926 -
Net Cash Flow Rs m 211 25 -88.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 413.7, stands at 33.1 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 1.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 33.5 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 126.3 136.7
TTM Earnings per share Rs 6.0 9.3
Diluted earnings per share Rs 6.0 9.3
Price to Cash Flow x 45.2 33.5
TTM P/E ratio x 33.1 33.1
Price / Book Value ratio x 1.5 3.0
Market Cap Rs m 55,039 55,039
Dividends per share (Unadj.) Rs 0.8 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 deteriorated and stood at 3.7x during FY18, from 2.4x 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 136 126
Interest coverage x 2.4 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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 282.5 to Rs 413.7, registering a gain of Rs 131.3 or around 46.5%.

Overall, the S&P BSE SENSEX is up 7.6% over the year.

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

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RADICO KHAITAN Announces Quarterly Results (2QFY20); Net Profit Up 58.6% (Quarterly Result Update)

Nov 14, 2019 | Updated on Nov 14, 2019

For the quarter ended September 2019, RADICO KHAITAN has posted a net profit of Rs 786 m (up 58.6% YoY). Sales on the other hand came in at Rs 25 bn (up 32.2% YoY). Read on for a complete analysis of RADICO KHAITAN's quarterly results.

RADICO KHAITAN 2018-19 Annual Report Analysis (Annual Result Update)

Sep 16, 2019 | Updated on Sep 16, 2019

Here's an analysis of the annual report of RADICO KHAITAN for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of RADICO KHAITAN. Also includes updates on the valuation of RADICO KHAITAN.

RADICO KHAITAN Announces Quarterly Results (1QFY20); Net Profit Up 15.6% (Quarterly Result Update)

Aug 13, 2019 | Updated on Aug 13, 2019

For the quarter ended June 2019, RADICO KHAITAN has posted a net profit of Rs 548 m (up 15.6% YoY). Sales on the other hand came in at Rs 27 bn (up 26.6% YoY). Read on for a complete analysis of RADICO KHAITAN's quarterly results.

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