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RELIGARE ENT. 2017-18 Annual Report Analysis

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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.)

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