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SADBHAV ENGINEERING 2017-18 Annual Report Analysis

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SADBHAV ENGINEERING 2017-18 Annual Report Analysis
Tue, 18 Dec

SADBHAV ENGINEERING 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.

SADBHAV ENGINEERING Income Statement Analysis

  • Operating income during the year rose 10.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 24.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.7% in FY18 as against 26.5% in FY17.
  • Depreciation charges increased by 11.6% and finance costs increased by 10.6% YoY, respectively.
  • Other income declined by 24.2% YoY.
  • Net profit for the year declined by 33.6% YoY.
  • Net profit margins during the year grew from 3.7% in FY17 to 2.2% in FY18.

SADBHAV ENGINEERING Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 44,977 49,747 10.6%
Other income Rs m 1,565 1,186 -24.2%
Total Revenues Rs m 46,542 50,934 9.4%
Gross profit Rs m 11,899 14,767 24.1%
Depreciation Rs m 3,211 3,584 11.6%
Interest Rs m 11,875 13,129 10.6%
Profit before tax Rs m -1,622 -760 -53.1%
Tax Rs m 94 380 302.4%
Profit after tax Rs m -1,717 -1,140 -33.6%
Gross profit margin % 26.5 29.7
Effective tax rate % -5.8 -50.0
Net profit margin % -3.7 -2.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SADBHAV ENGINEERING Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 36 billion as compared to Rs 27 billion in FY17, thereby witnessing an increase of 33.8%.
  • Long-term debt stood at Rs 84 billion as compared to Rs 83 billion during FY17, a growth of 2.1%.
  • Current assets rose 58% and stood at Rs 41 billion, while fixed assets fell 2% and stood at Rs 101 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 149 billion as against Rs 138 billion during FY17, thereby witnessing a growth of 8%.

SADBHAV ENGINEERING Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 9,063 8,913 -1.7
 
Current Liabilities Rs m 26,631 35,633 33.8
Long-term Debt Rs m 82,595 84,357 2.1
Total Liabilities Rs m 138,199 149,271 8.0
 
Current assets Rs m 25,903 40,886 57.8
Fixed Assets Rs m 102,467 100,838 -1.6
Total Assets Rs m 138,199 149,271 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SADBHAV ENGINEERING Cash Flow Statement Analysis

  • SADBHAV ENGINEERING's cash flow from operating activities (CFO) during FY18 stood at Rs 13 billion, an improvement of 248.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -942 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -11 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 533 million from the Rs -407 million net cash flows seen during FY17.

SADBHAV ENGINEERING 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 3,656 12,735 248.3%
Cash Flow from Investing Activities Rs m -2,199 -942 -
Cash Flow from Financing Activities Rs m -1,864 -11,260 -
Net Cash Flow Rs m -407 533 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SADBHAV ENGINEERING

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.6, an improvement from the EPS of Rs -10.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 196.7, stands at 14.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.8 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 262.1 290.0
TTM Earnings per share Rs -10.0 -6.6
Diluted earnings per share Rs -10.0 -6.6
Price to Cash Flow x 22.6 13.8
TTM P/E ratio x 14.5 14.5
Price / Book Value ratio x 5.2 6.7
Market Cap Rs m 33,748 33,730
Dividends per share (Unadj.) Rs 0.8 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SADBHAV ENGINEERING

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 1.0x 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 deteriorated and stood at 0.9x during FY18, from 0.9x 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 -12.8% during FY18, from -18.9% 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 13.3% during FY18, from 11.2% 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 improved and stood at 8.0% during FY18, from 7.4% 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 1.0 1.1
Debtors’ Days Days 129 102
Interest coverage x 0.9 0.9
Debt to equity ratio x 9.1 9.5
Return on assets % 7.4 8.0
Return on equity % -18.9 -12.8
Return on capital employed % 11.2 13.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how SADBHAV ENGINEERING has performed over the last 5 years, please visit here.

SADBHAV ENGINEERING Share Price Performance

Over the last one year, SADBHAV ENGINEERING share price has moved up from Rs 361.1 to Rs 196.7, registering a loss of Rs 164.4 or around 45.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,584.6 (up 0.6%). Over the last one year it has moved up from 18,447.1 to 18,584.6, a gain of 137 points (up 0.7%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

(To know more, check out historical annual results for SADBHAV ENGINEERING and quarterly results for SADBHAV ENGINEERING)

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