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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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)

Annual Report FAQs

What is the current share price of RUPA & CO?

RUPA & CO currently trades at Rs 238.4 per share. You can check out the latest share price performance of RUPA & CO here...

What was the revenue of RUPA & CO in FY18? How does it compare to earlier years?

The revenues of RUPA & CO stood at Rs 11,228 m in FY18, which was up 2.5% compared to Rs 10,954 m reported in FY17.

RUPA & CO's revenue has grown from Rs 9,116 m in FY14 to Rs 11,228 m in FY18.

Over the past 5 years, the revenue of RUPA & CO has grown at a CAGR of 5.3%.

What was the net profit of RUPA & CO in FY18? How does it compare to earlier years?

The net profit of RUPA & CO stood at Rs 862 m in FY18, which was up 19.3% compared to Rs 723 m reported in FY17.

This compares to a net profit of Rs 659 m in FY16 and a net profit of Rs 682 m in FY15.

Over the past 5 years, RUPA & CO net profit has grown at a CAGR of 6.9%.

What does the cash flow statement of RUPA & CO 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 RUPA & CO reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 150 m as compared to Rs 977 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -171 m as compared to Rs -187 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -29 m as compared to Rs -748 m in FY17.

Here's the cash flow statement of RUPA & CO for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations7725451,649977150
From Investments-161-203-272-187-171
From Financial Activity-625-331-1,355-748-29
Net Cashflow-14112243-49

What does the Key Ratio analysis of RUPA & CO 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 RUPA & CO reveals:

  • Operating profit margins witnessed a fall and down at 13.9% in FY18 as against 12.7% in FY17.
  • Net profit margins grew from 6.6% in FY17 to 7.7% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.0 in FY17.

Here's the ratio/financial analysis of RUPA & CO for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)14.414.213.012.713.9
Net Profit Margin (%)7.37.06.56.67.7
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of RUPA & CO

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