RELIGARE ENT 2017-18 Annual Report Analysis

Sat, 31 Mar

RELIGARE ENT 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.

RELIGARE ENT Income Statement Analysis

• Operating income during the year fell 33.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 119.1% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 12.6% in FY18 as against 44.1% in FY17.
• Depreciation charges decreased by 2.9% and finance costs decreased by 30.9% YoY, respectively.
• Other income grew by 205.2% YoY.
• Net profit for the year grew by 856.8% YoY.
• Net profit margins during the year declined from 3.3% in FY17 to 46.8% in FY18.

RELIGARE ENT Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	37,718	25,245	-33.1%
Other income	Rs m	693	2,114	205.2%
Total Revenues	Rs m	38,410	27,358	-28.8%
Gross profit	Rs m	16,650	-3,178	-119.1%
Depreciation	Rs m	310	301	-2.9%
Interest	Rs m	18,397	12,707	-30.9%
Profit before tax	Rs m	-1,364	-14,072	931.6%
Tax	Rs m	-130	-2,269	1,639.5%
Profit after tax	Rs m	-1,234	-11,803	856.8%
Gross profit margin	%	44.1	-12.6
Effective tax rate	%	9.6	16.1
Net profit margin	%	-3.3	-46.8

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RELIGARE ENT Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 116 billion as compared to Rs 83 billion in FY17, thereby witnessing an increase of 40.6%.
• Current assets rose 36% and stood at Rs 126 billion, while fixed assets fell 84% and stood at Rs 20 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 146 billion as against Rs 220 billion during FY17, thereby witnessing a fall of 34%.

RELIGARE ENT Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	27,517	18,365	-33.3
Current Liabilities	Rs m	82,534	116,073	40.6
Long-term Debt	Rs m	89,166	0	-100.0
Total Liabilities	Rs m	220,223	145,941	-33.7
Current assets	Rs m	92,156	125,640	36.3
Fixed Assets	Rs m	128,068	20,301	-84.1
Total Assets	Rs m	220,223	145,941	-33.7

RELIGARE ENT Cash Flow Statement Analysis

• RELIGARE ENT's cash flow from operating activities (CFO) during FY18 stood at Rs 58 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -65 billion, an improvement of 16% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -11 billion from the Rs 3 billion net cash flows seen during FY17.

RELIGARE ENT 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	58,706	58,021	-1.2%
Cash Flow from Investing Activities	Rs m	23,178	-4,571	-
Cash Flow from Financing Activities	Rs m	-76,960	-64,550	-
Net Cash Flow	Rs m	3,238	-11,100	-

Current Valuations for RELIGARE ENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -66.1, an decline from the EPS of Rs -6.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 54.1, stands at -9.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at -2.1 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	211.5	141.5
TTM Earnings per share	Rs	-6.9	-66.1
Diluted earnings per share	Rs	-3.9	-37.0
Price to Cash Flow	x	-75.0	-2.1
TTM P/E ratio	x	-64.0	-9.4
Price / Book Value ratio	x	1.6	1.3
Market Cap	Rs m	44,931	24,257
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RELIGARE ENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated 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 -0.1x during FY18, from 0.9x 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 -64.3% during FY18, from -4.5% 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 -7.4% during FY18, from 14.6% 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 0.6% during FY18, from 7.8% 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	59,224,435	445
Interest coverage	x	0.9	-0.1
Debt to equity ratio	x	3.2	0.0
Return on assets	%	7.8	0.6
Return on equity	%	-4.5	-64.3
Return on capital employed	%	14.6	-7.4

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

RELIGARE ENT Share Price Performance

Over the last one year, RELIGARE ENT share price has moved down from Rs 217.4 to Rs 54.1, registering a loss of Rs 163.3 or around 75.1%.

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

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

Read: Latest Annual Report Analysis of RELIGARE ENT