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REDINGTON 2017-18 Annual Report Analysis
Sat, 31 Mar

REDINGTON 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.

REDINGTON Income Statement Analysis

  • Operating income during the year rose 1.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 2.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.0% in FY18 as against 2.0% in FY17.
  • Depreciation charges increased by 4.1% and finance costs increased by 7.7% YoY, respectively.
  • Other income declined by 37.9% YoY.
  • Net profit for the year grew by 1.6% YoY.
  • Net profit margins during the year grew from 1.2% in FY17 to 1.2% in FY18.

REDINGTON Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 411,147 416,026 1.2%
Other income Rs m 630 391 -37.9%
Total Revenues Rs m 411,776 416,417 1.1%
Gross profit Rs m 8,295 8,458 2.0%
Depreciation Rs m 547 569 4.1%
Interest Rs m 1,833 1,974 7.7%
Profit before tax Rs m 6,545 6,306 -3.7%
Tax Rs m 1,778 1,462 -17.8%
Profit after tax Rs m 4,767 4,844 1.6%
Gross profit margin % 2.0 2.0
Effective tax rate % 27.2 23.2
Net profit margin % 1.2 1.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

REDINGTON Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 69 billion as compared to Rs 66 billion in FY17, thereby witnessing an increase of 4.7%.
  • Long-term debt stood at Rs 42 million as compared to Rs 0 million during FY17, a fall of 0.0%.
  • Current assets rose 7% and stood at Rs 103 billion, while fixed assets rose 3% and stood at Rs 7 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 110 billion as against Rs 103 billion during FY17, thereby witnessing a growth of 7%.

REDINGTON Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 31,479 35,306 12.2
 
Current Liabilities Rs m 66,231 69,314 4.7
Long-term Debt Rs m 0 42 0.0
Total Liabilities Rs m 103,039 109,915 6.7
 
Current assets Rs m 96,053 102,690 6.9
Fixed Assets Rs m 6,985 7,226 3.4
Total Assets Rs m 103,039 109,915 6.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



REDINGTON Cash Flow Statement Analysis

  • REDINGTON's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -191 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion, an improvement of 82% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -380 million from the Rs 1 billion net cash flows seen during FY17.

REDINGTON 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 13,605 1,856 -86.4%
Cash Flow from Investing Activities Rs m -753 -191 -
Cash Flow from Financing Activities Rs m -11,307 -1,990 -
Net Cash Flow Rs m 1,440 -380 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for REDINGTON

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.1, an improvement from the EPS of Rs 11.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 146.7, stands at 23.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 0.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.8 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 1,028.3 1,039.6
TTM Earnings per share Rs 11.9 12.1
Diluted earnings per share Rs 6.1 6.2
Price to Cash Flow x 16.2 11.8
TTM P/E ratio x 18.1 23.7
Price / Book Value ratio x 1.3 1.8
Market Cap Rs m 41,254 63,948
Dividends per share (Unadj.) Rs 4.3 2.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for REDINGTON

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.5x during FY18, from 1.5x 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 deteriorated and stood at 4.2x during FY18, from 4.6x 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 13.7% during FY18, from 15.1% 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 23.4% during FY18, from 26.6% 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 declined and down at 6.2% during FY18, from 6.4% 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 1.5 1.5
Debtors’ Days Days 5 5
Interest coverage x 4.6 4.2
Debt to equity ratio x 0.0 0.0
Return on assets % 6.4 6.2
Return on equity % 15.1 13.7
Return on capital employed % 26.6 23.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

REDINGTON Share Price Performance

Over the last one year, REDINGTON share price has moved up from Rs 110.4 to Rs 146.7, registering a gain of Rs 36.3 or around 32.9%.

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

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

Annual Report FAQs

What is the current share price of REDINGTON?

REDINGTON currently trades at Rs 208.2 per share. You can check out the latest share price performance of REDINGTON here...

What was the revenue of REDINGTON in FY18? How does it compare to earlier years?

The revenues of REDINGTON stood at Rs 416,417 m in FY18, which was up 1.1% compared to Rs 411,776 m reported in FY17.

REDINGTON's revenue has grown from Rs 354,972 m in FY16 to Rs 416,417 m in FY18.

Over the past 3 years, the revenue of REDINGTON has grown at a CAGR of 8.3%.

What was the net profit of REDINGTON in FY18? How does it compare to earlier years?

The net profit of REDINGTON stood at Rs 4,844 m in FY18, which was up 1.6% compared to Rs 4,767 m reported in FY17.

This compares to a net profit of Rs 4,441 m in FY16.

Over the past 3 years, REDINGTON net profit has grown at a CAGR of 4.4%.

What does the cash flow statement of REDINGTON reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of REDINGTON reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 1,856 m as compared to Rs 13,605 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -191 m as compared to Rs -753 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -1,990 m as compared to Rs -11,307 m in FY17.

Here's the cash flow statement of REDINGTON for the past 3 years.

(Rs m)FY16FY17FY18
From Operations-1,42113,6051,856
From Investments-181-753-191
From Financial Activity2,016-11,307-1,990
Net Cashflow7101,440-380

What does the Key Ratio analysis of REDINGTON reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of REDINGTON reveals:

  • Operating profit margins witnessed a fall and down at 2.0% in FY18 as against 2.0% in FY17.
  • Net profit margins grew from 1.2% in FY17 to 1.2% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.0 in FY17.

Here's the ratio/financial analysis of REDINGTON for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)2.22.02.0
Net Profit Margin (%)1.31.21.2
Debt to Equity Ratio (x)0.00.00.0

Read: Latest Annual Report Analysis of REDINGTON

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