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

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

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	-

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

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

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)

Read: Latest Annual Report Analysis of RUBY MILLS