RELIGARE ENT. 2017-18 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

RELIGARE ENT. 2017-18 Annual Report Analysis
Fri, 21 Dec

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 31.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 118.3% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 14.9% in FY18 as against 55.8% in FY17.
  • Depreciation charges increased by 21.4% and finance costs decreased by 31.3% YoY, respectively.
  • Other income grew by 53.6% YoY.
  • Net profit for the year grew by 584.2% YoY.
  • Net profit margins during the year declined from 4.5% in FY17 to 44.3% 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 25,868 -31.4%
Other income Rs m 693 1,064 53.6%
Total Revenues Rs m 38,410 26,932 -29.9%
Gross profit Rs m 21,035 -3,856 -118.3%
Depreciation Rs m 310 376 21.4%
Interest Rs m 18,363 12,610 -31.3%
Profit before tax Rs m 3,055 -15,779 -616.4%
Tax Rs m -130 -2,274 1,644.1%
Profit after tax Rs m -1,743 -11,925 584.2%
Gross profit margin % 55.8 -14.9
Effective tax rate % -4.3 14.4
Net profit margin % -4.5 -44.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RELIGARE ENT. Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 73 billion as compared to Rs 81 billion in FY17, thereby witnessing an decrease of -10.1%.
  • Long-term debt down at Rs 58 billion as compared to Rs 89 billion during FY17, a fall of 34.6%.
  • Current assets fell 16% and stood at Rs 76 billion, while fixed assets rose 20% and stood at Rs 15 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 159 billion as against Rs 210 billion during FY17, thereby witnessing a fall of 25%.

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 16,846 -38.8
 
Current Liabilities Rs m 80,912 72,751 -10.1
Long-term Debt Rs m 89,166 58,287 -34.6
Total Liabilities Rs m 210,378 158,762 -24.5
 
Current assets Rs m 90,534 76,160 -15.9
Fixed Assets Rs m 12,489 15,041 20.4
Total Assets Rs m 210,378 158,762 -24.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RELIGARE ENT. Cash Flow Statement Analysis

  • RELIGARE ENT.'s cash flow from operating activities (CFO) during FY18 stood at Rs 57 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -4 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -64 billion, an improvement of 17% 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 57,227 -2.5%
Cash Flow from Investing Activities Rs m 23,178 -4,220 -
Cash Flow from Financing Activities Rs m -76,960 -63,772 -
Net Cash Flow Rs m 3,238 -10,769 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for RELIGARE ENT.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -58.2, an decline from the EPS of Rs -8.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 32.5, stands at -4.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.1 times.
  • The company's price to cash flow (P/CF) ratio stood at -0.4 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 184.1 126.2
TTM Earnings per share Rs -8.5 -58.2
Diluted earnings per share Rs -9.8 -66.9
Price to Cash Flow x -7.2 -0.4
TTM P/E ratio x -4.9 -4.3
Price / Book Value ratio x 1.9 1.7
Market Cap Rs m 6,647 5,787
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for RELIGARE ENT.

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x 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 -0.3x during FY18, from 1.2x 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 -70.8% during FY18, from -6.3% 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 -2.1% during FY18, from 14.1% 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 0.4% during FY18, from 7.9% 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 1.0
Debtors’ Days Days 59 40
Interest coverage x 1.2 -0.3
Debt to equity ratio x 3.2 3.5
Return on assets % 7.9 0.4
Return on equity % -6.3 -70.8
Return on capital employed % 14.1 -2.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 up from Rs 76.8 to Rs 32.5, registering a loss of Rs 44.4 or around 57.7%.

Overall, the S&P BSE SENSEX is up 7.8% over the year.

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

Equitymaster requests your view! Post a comment on "RELIGARE ENT. 2017-18 Annual Report Analysis". Click here!

  

Related Views on News

Indian Railway Finance Corporation IPO: Should You Apply? (IPO)

Jan 18, 2021

Monopolistic railway financer with impeccable asset quality.

CAMS IPO: Should You Apply? (IPO)

Sep 18, 2020

Does the company having 70% market share of the mutual fund registrar business have sound prospects?

More Views on News

Most Popular

A 25 Bagger Indian Stock at the Centre of the Global Semiconductor Chip Shortage(Profit Hunter)

Jul 13, 2021

One technology company in India is grossly underrated despite its dominant role in semiconductor chip designing.

RBI Opens a New Market for Investors(Fast Profits Daily)

Jul 16, 2021

You now have a new way to create wealth. Grab it with both hands.

OPEC is Dying! RIP OPEC(Fast Profits Daily)

Jul 13, 2021

Why the global oil cartel is unravelling and how India stands to gain.

A Better Way than the Zomato IPO to Play the Food Delivery Megatrend(Profit Hunter)

Jul 14, 2021

A unique backdoor way of making big profits from smallcap companies.

Top 3 Risks for the Nifty Today(Fast Profits Daily)

Jul 12, 2021

Don't ignore the risks to the Nifty that are hiding in plain sight.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2021
Get our special report Multibagger Stocks Guide (2021 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TRACK RELIGARE ENT

  • Track your investment in RELIGARE ENT with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

RELIGARE ENT - APM FINVEST COMPARISON

COMPARE RELIGARE ENT WITH

MARKET STATS