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RUPA & CO 2017-18 Annual Report Analysis

Sat, 31 Mar

RUPA & CO 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.

RUPA & CO Income Statement Analysis

• Operating income during the year rose 2.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.9% in FY18 as against 12.7% in FY17.
• Depreciation charges decreased by 2.6% and finance costs decreased by 23.5% YoY, respectively.
• Other income declined by 4.0% YoY.
• Net profit for the year grew by 19.3% YoY.
• Net profit margins during the year grew from 6.6% in FY17 to 7.7% in FY18.

RUPA & CO Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	10,928	11,204	2.5%
Other income	Rs m	26	25	-4.0%
Total Revenues	Rs m	10,954	11,228	2.5%
Gross profit	Rs m	1,389	1,555	11.9%
Depreciation	Rs m	162	158	-2.6%
Interest	Rs m	106	81	-23.5%
Profit before tax	Rs m	1,147	1,340	16.9%
Tax	Rs m	424	478	12.8%
Profit after tax	Rs m	723	862	19.3%
Gross profit margin	%	12.7	13.9
Effective tax rate	%	37.0	35.7
Net profit margin	%	6.6	7.7

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RUPA & CO Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 4 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 47.7%.
• Current assets rose 34% and stood at Rs 7 billion, while fixed assets rose 1% and stood at Rs 2 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 9 billion as against Rs 7 billion during FY17, thereby witnessing a growth of 26%.

RUPA & CO Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	4,394	4,992	13.6
Current Liabilities	Rs m	2,604	3,846	47.7
Long-term Debt	Rs m	8	0	-100.0
Total Liabilities	Rs m	7,158	8,992	25.6
Current assets	Rs m	5,316	7,135	34.2
Fixed Assets	Rs m	1,843	1,857	0.7
Total Assets	Rs m	7,158	8,992	25.6

RUPA & CO Cash Flow Statement Analysis

• RUPA & CO's cash flow from operating activities (CFO) during FY18 stood at Rs 150 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -171 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -29 million, an improvement of 96% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -49 million from the Rs 43 million net cash flows seen during FY17.

RUPA & CO 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	977	150	-84.6%
Cash Flow from Investing Activities	Rs m	-187	-171	-
Cash Flow from Financing Activities	Rs m	-748	-29	-
Net Cash Flow	Rs m	43	-49	-

Current Valuations for RUPA & CO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.8, an improvement from the EPS of Rs 9.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 372.6, stands at 31.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 35.6 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	137.4	140.9
TTM Earnings per share	Rs	9.1	10.8
Diluted earnings per share	Rs	9.1	10.8
Price to Cash Flow	x	29.4	35.6
TTM P/E ratio	x	33.7	31.3
Price / Book Value ratio	x	5.4	7.3
Market Cap	Rs m	23,694	36,303
Dividends per share (Unadj.)	Rs	2.8	3.0

Ratio Analysis for RUPA & CO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY18, from 2.0x 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 improved and stood at 17.5x during FY18, from 11.8x 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 improved and stood at 17.3% during FY18, from 16.4% 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 improved and stood at 28.5% during FY18, from 28.5% 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 10.5% during FY18, from 11.6% 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	2.0	1.9
Debtors’ Days	Days	70,392,897	1,145
Interest coverage	x	11.8	17.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.6	10.5
Return on equity	%	16.4	17.3
Return on capital employed	%	28.5	28.5

To see how RUPA & CO has performed over the last 5 years, please visit here.

RUPA & CO Share Price Performance

Over the last one year, RUPA & CO share price has moved up from Rs 326.6 to Rs 372.6, registering a gain of Rs 46.0 or around 14.1%.

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

(To know more, check out historical annual results for RUPA & CO and quarterly results for RUPA & CO)

Read: Latest Annual Report Analysis of RUPA & CO