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RUBY MILLS 2017-18 Annual Report Analysis
Sat, 31 Mar

RUBY MILLS 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.

RUBY MILLS Income Statement Analysis

  • Operating income during the year fell 1.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 4.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 27.3% in FY18 as against 28.3% in FY17.
  • Depreciation charges increased by 3.3% and finance costs decreased by 15.9% YoY, respectively.
  • Other income declined by 47.9% YoY.
  • Net profit for the year declined by 6.0% YoY.
  • Net profit margins during the year declined from 18.5% in FY17 to 17.6% in FY18.

RUBY MILLS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 2,017 1,994 -1.2%
Other income Rs m 165 86 -47.9%
Total Revenues Rs m 2,182 2,080 -4.7%
Gross profit Rs m 571 544 -4.9%
Depreciation Rs m 150 155 3.3%
Interest Rs m 125 105 -15.9%
Profit before tax Rs m 462 370 -19.9%
Tax Rs m 88 18 -79.1%
Profit after tax Rs m 374 352 -6.0%
Gross profit margin % 28.3 27.3
Effective tax rate % 19.0 4.9
Net profit margin % 18.5 17.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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RUBY MILLS Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 2 billion as compared to Rs 2 billion in FY17, thereby witnessing an decrease of -0.9%.
  • Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY17, a fall of 6.7%.
  • Current assets rose 8% and stood at Rs 2 billion, while fixed assets fell 1% and stood at Rs 8 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 10 billion as against Rs 10 billion during FY17, thereby witnessing a growth of 1%.

RUBY MILLS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 4,064 4,384 7.9
 
Current Liabilities Rs m 2,445 2,422 -0.9
Long-term Debt Rs m 2,949 2,752 -6.7
Total Liabilities Rs m 9,721 9,777 0.6
 
Current assets Rs m 1,913 2,075 8.5
Fixed Assets Rs m 7,808 7,702 -1.4
Total Assets Rs m 9,721 9,777 0.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



RUBY MILLS Cash Flow Statement Analysis

  • RUBY MILLS's cash flow from operating activities (CFO) during FY18 stood at Rs 486 million, an improvement of 37.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 2 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -412 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 75 million from the Rs -6 million net cash flows seen during FY17.

RUBY MILLS 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 354 486 37.3%
Cash Flow from Investing Activities Rs m -86 2 -
Cash Flow from Financing Activities Rs m -274 -412 -
Net Cash Flow Rs m -6 75 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for RUBY MILLS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.0, an decline from the EPS of Rs 22.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 291.1, stands at 13.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 2.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.2 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 120.6 119.2
TTM Earnings per share Rs 22.4 21.0
Diluted earnings per share Rs 22.4 21.0
Price to Cash Flow x 10.4 12.2
TTM P/E ratio x 14.5 13.9
Price / Book Value ratio x 1.6 1.4
Market Cap Rs m 6,705 6,153
Dividends per share (Unadj.) Rs 1.8 1.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for RUBY MILLS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.9x during FY18, from 0.8x 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 4.5x during FY18, from 4.7x 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 8.0% during FY18, from 9.2% 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 6.7% during FY18, from 8.4% 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 4.7% during FY18, from 5.1% 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 0.8 0.9
Debtors’ Days Days 245 334
Interest coverage x 4.7 4.5
Debt to equity ratio x 0.7 0.6
Return on assets % 5.1 4.7
Return on equity % 9.2 8.0
Return on capital employed % 8.4 6.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

RUBY MILLS Share Price Performance

Over the last one year, RUBY MILLS share price has moved down from Rs 325.8 to Rs 291.1, registering a loss of Rs 34.7 or around 10.7%.

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

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

Annual Report FAQs

What is the current share price of RUBY MILLS?

RUBY MILLS currently trades at Rs 469.3 per share. You can check out the latest share price performance of RUBY MILLS here...

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

The revenues of RUBY MILLS stood at Rs 2,080 m in FY18, which was down -4.7% compared to Rs 2,182 m reported in FY17.

RUBY MILLS' revenue has fallen from Rs 2,291 m in FY16 to Rs 2,080 m in FY18.

Over the past 3 years, the revenue of RUBY MILLS has grown at a CAGR of -4.7%.

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

The net profit of RUBY MILLS stood at Rs 352 m in FY18, which was down -6.0% compared to Rs 374 m reported in FY17.

This compares to a net profit of Rs 408 m in FY16.

Over the past 3 years, RUBY MILLS net profit has grown at a CAGR of -7.1%.

What does the cash flow statement of RUBY MILLS 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 RUBY MILLS reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 486 m as compared to Rs 354 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs 2 m as compared to Rs -86 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -412 m as compared to Rs -274 m in FY17.

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

(Rs m)FY16FY17FY18
From Operations382354486
From Investments54-862
From Financial Activity-229-274-412
Net Cashflow207-675

What does the Key Ratio analysis of RUBY MILLS 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 RUBY MILLS reveals:

  • Operating profit margins witnessed a fall and stood at 27.3% in FY18 as against 28.3% in FY17.
  • Net profit margins declined from 18.5% in FY17 to 17.6% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.6 as compared to 0.7 in FY17.

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

 FY16FY17FY18
Operating Profit Margin (%)31.128.327.3
Net Profit Margin (%)19.218.517.6
Debt to Equity Ratio (x)0.90.70.6

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