SADBHAV ENGINEERING 2017-18 Annual Report Analysis

Sat, 31 Mar

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 23.8% 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 10.3% YoY, respectively.
• Other income declined by 24.1% YoY.
• Net profit for the year declined by 33.6% YoY.
• Net profit margins during the year grew from 3.8% in FY17 to 2.3% 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	1,188	-24.1%
Total Revenues	Rs m	46,542	50,935	9.4%
Gross profit	Rs m	11,931	14,765	23.8%
Depreciation	Rs m	3,211	3,584	11.6%
Interest	Rs m	11,907	13,129	10.3%
Profit before tax	Rs m	-1,622	-760	-53.1%
Tax	Rs m	94	380	302.6%
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	%	-3.8	-2.3

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 30.0%.
• Long-term debt stood at Rs 84 billion as compared to Rs 83 billion during FY17, a growth of 2.1%.
• Current assets rose 53% and stood at Rs 41 billion, while fixed assets fell 4% and stood at Rs 107 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 148 billion as against Rs 139 billion during FY17, thereby witnessing a growth of 7%.

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	27,413	35,633	30.0
Long-term Debt	Rs m	82,595	84,357	2.1
Total Liabilities	Rs m	138,686	148,277	6.9
Current assets	Rs m	26,685	40,886	53.2
Fixed Assets	Rs m	112,001	107,391	-4.1
Total Assets	Rs m	138,686	148,277	6.9

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	-

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 395.6, stands at 30.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.6 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 24.6 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	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	35.2	24.6
TTM P/E ratio	x	28.0	30.8
Price / Book Value ratio	x	5.2	6.7
Market Cap	Rs m	46,753	60,123
Dividends per share (Unadj.)	Rs	0.8	1.0

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 improved 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 8.1% during FY18, from 7.3% 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	1,291	1,022
Interest coverage	x	0.9	0.9
Debt to equity ratio	x	9.1	9.5
Return on assets	%	7.3	8.1
Return on equity	%	-18.9	-12.8
Return on capital employed	%	11.2	13.3

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 307.0 to Rs 395.6, registering a gain of Rs 88.6 or around 28.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

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

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

Read: Latest Annual Report Analysis of SADBHAV ENGINEERING