RSWM LTD 2017-18 Annual Report Analysis

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RSWM LTD 2017-18 Annual Report Analysis
Fri, 21 Dec

RSWM LTD 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.

RSWM LTD Income Statement Analysis

  • Operating income during the year fell 1.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 30.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.7% in FY18 as against 10.9% in FY17.
  • Depreciation charges decreased by 5.8% and finance costs increased by 6.3% YoY, respectively.
  • Other income grew by 14.6% YoY.
  • Net profit for the year declined by 79.8% YoY.
  • Net profit margins during the year declined from 3.4% in FY17 to 0.7% in FY18.

RSWM LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 29,866 29,398 -1.6%
Other income Rs m 316 362 14.6%
Total Revenues Rs m 30,182 29,760 -1.4%
Gross profit Rs m 3,263 2,269 -30.5%
Depreciation Rs m 1,322 1,245 -5.8%
Interest Rs m 1,104 1,173 6.3%
Profit before tax Rs m 1,154 213 -81.5%
Tax Rs m 144 68 -52.5%
Profit after tax Rs m 1,041 210 -79.8%
Gross profit margin % 10.9 7.7
Effective tax rate % 12.5 32.0
Net profit margin % 3.4 0.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RSWM LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 11 billion as compared to Rs 12 billion in FY17, thereby witnessing an decrease of -1.3%.
  • Long-term debt stood at Rs 6 billion as compared to Rs 5 billion during FY17, a growth of 14.9%.
  • Current assets rose 7% and stood at Rs 11 billion, while fixed assets fell 4% and stood at Rs 11 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 28 billion as against Rs 25 billion during FY17, thereby witnessing a growth of 13%.

RSWM LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 7,083 9,824 38.7
 
Current Liabilities Rs m 11,535 11,379 -1.3
Long-term Debt Rs m 4,969 5,709 14.9
Total Liabilities Rs m 24,655 27,947 13.3
 
Current assets Rs m 10,708 11,485 7.3
Fixed Assets Rs m 11,902 11,383 -4.4
Total Assets Rs m 24,655 27,947 13.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RSWM LTD Cash Flow Statement Analysis

  • RSWM LTD'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 -607 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -970 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 79 million from the Rs 1 million net cash flows seen during FY17.

RSWM LTD 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 2,220 1,656 -25.4%
Cash Flow from Investing Activities Rs m -1,540 -607 -
Cash Flow from Financing Activities Rs m -679 -970 -
Net Cash Flow Rs m 1 79 15,700.0%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for RSWM LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.9, an decline from the EPS of Rs 44.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 238.5, stands at 16.9 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 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.0 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 1,268.2 1,248.3
TTM Earnings per share Rs 44.2 8.9
Diluted earnings per share Rs 44.2 8.9
Price to Cash Flow x 2.4 4.0
TTM P/E ratio x 16.9 16.9
Price / Book Value ratio x 1.3 0.9
Market Cap Rs m 5,617 5,617
Dividends per share (Unadj.) Rs 12.5 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for RSWM LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY18, from 0.9x 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 1.2x during FY18, from 2.0x 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 2.1% during FY18, from 14.7% 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 declined and down at 9.3% during FY18, from 19.0% 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 4.9% during FY18, from 8.7% 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 0.9 1.0
Debtors’ Days Days 46 54
Interest coverage x 2.0 1.2
Debt to equity ratio x 0.7 0.6
Return on assets % 8.7 4.9
Return on equity % 14.7 2.1
Return on capital employed % 19.0 9.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

RSWM LTD Share Price Performance

Over the last one year, RSWM LTD share price has moved up from Rs 368.5 to Rs 238.5, registering a loss of Rs 130.0 or around 35.3%.

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

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

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Related Views on News

RSWM LTD Announces Quarterly Results (1QFY20); Net Profit Down 573.4% (Quarterly Result Update)

Aug 16, 2019 | Updated on Aug 16, 2019

For the quarter ended June 2019, RSWM LTD has posted a net profit of Rs 112 m (down 573.4% YoY). Sales on the other hand came in at Rs 7 bn (down 1.4% YoY). Read on for a complete analysis of RSWM LTD's quarterly results.

RSWM LTD Announces Quarterly Results (4QFY19); Net Profit Down 145.3% (Quarterly Result Update)

May 27, 2019 | Updated on May 27, 2019

For the quarter ended March 2019, RSWM LTD has posted a net profit of Rs 62 m (down 145.3% YoY). Sales on the other hand came in at Rs 8 bn (up 7.8% YoY). Read on for a complete analysis of RSWM LTD's quarterly results.

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