RUCHI SOYA INDUSTRIES 2017-18 Annual Report Analysis

Sat, 31 Mar

RUCHI SOYA INDUSTRIES 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.

RUCHI SOYA INDUSTRIES Income Statement Analysis

• Operating income during the year fell 37.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 616.6% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 42.5% in FY18 as against 3.7% in FY17.
• Depreciation charges decreased by 10.1% and finance costs decreased by 0.0% YoY, respectively.
• Other income declined by 65.7% YoY.
• Net profit for the year grew by 322.1% YoY.
• Net profit margins during the year declined from 7.1% in FY17 to 47.8% in FY18.

RUCHI SOYA INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	191,729	120,271	-37.3%
Other income	Rs m	1,076	369	-65.7%
Total Revenues	Rs m	192,805	120,639	-37.4%
Gross profit	Rs m	-7,128	-51,083	616.6%
Depreciation	Rs m	1,589	1,428	-10.1%
Interest	Rs m	9,719	9,714	0.0%
Profit before tax	Rs m	-17,360	-61,857	256.3%
Tax	Rs m	-3,742	-4,374	16.9%
Profit after tax	Rs m	-13,618	-57,483	322.1%
Gross profit margin	%	-3.7	-42.5
Effective tax rate	%	21.6	7.1
Net profit margin	%	-7.1	-47.8

Act Before 11:59pm: Last Day to SAVE 80% on Our Midcap Stocks Research

RUCHI SOYA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 126 billion as compared to Rs 122 billion in FY17, thereby witnessing an increase of 3.9%.
• Long-term debt down at Rs 734 million as compared to Rs 797 million during FY17, a fall of 8.0%.
• Current assets fell 72% and stood at Rs 22 billion, while fixed assets fell 3% and stood at Rs 56 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 78 billion as against Rs 135 billion during FY17, thereby witnessing a fall of 42%.

RUCHI SOYA INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	9,214	-47,072	-610.9
Current Liabilities	Rs m	121,690	126,422	3.9
Long-term Debt	Rs m	797	734	-8.0
Total Liabilities	Rs m	135,233	77,935	-42.4
Current assets	Rs m	77,144	21,871	-71.6
Fixed Assets	Rs m	58,088	56,064	-3.5
Total Assets	Rs m	135,233	77,935	-42.4

RUCHI SOYA INDUSTRIES Cash Flow Statement Analysis

• RUCHI SOYA INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs 10 billion, an improvement of 121.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -681 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -10 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -594 million from the Rs -1 billion net cash flows seen during FY17.

RUCHI SOYA INDUSTRIES 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	4,414	9,791	121.8%
Cash Flow from Investing Activities	Rs m	863	-681	-
Cash Flow from Financing Activities	Rs m	-6,685	-9,704	-
Net Cash Flow	Rs m	-1,408	-594	-

Current Valuations for RUCHI SOYA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -176.1, an decline from the EPS of Rs -41.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 15.9, stands at 0.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.1 times, while the price to sales ratio stands at 0.0 times.
• The company's price to cash flow (P/CF) ratio stood at -0.1 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	587.3	368.4
TTM Earnings per share	Rs	-41.7	-176.1
Diluted earnings per share	Rs	-37.6	-158.8
Price to Cash Flow	x	-0.8	-0.1
TTM P/E ratio	x	1.1	0.1
Price / Book Value ratio	x	0.9	-0.2
Market Cap	Rs m	8,252	7,843
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RUCHI SOYA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.2x during FY18, from 0.6x 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 -5.4x during FY18, from -0.8x 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 122.1% during FY18, from -147.8% 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 112.5% during FY18, from -76.3% 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 -61.3% during FY18, from -2.9% 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	0.6	0.2
Debtors’ Days	Days	1,006	86
Interest coverage	x	-0.8	-5.4
Debt to equity ratio	x	0.1	0.0
Return on assets	%	-2.9	-61.3
Return on equity	%	-147.8	122.1
Return on capital employed	%	-76.3	112.5

To see how RUCHI SOYA INDUSTRIES has performed over the last 5 years, please visit here.

RUCHI SOYA INDUSTRIES Share Price Performance

Over the last one year, RUCHI SOYA INDUSTRIES share price has moved down from Rs 27.2 to Rs 15.9, registering a loss of Rs 11.3 or around 41.6%.

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

(To know more, check out historical annual results for RUCHI SOYA INDUSTRIES and quarterly results for RUCHI SOYA INDUSTRIES)

Read: Latest Annual Report Analysis of PATANJALI FOODS