SAIL 2017-18 Annual Report Analysis

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SAIL 2017-18 Annual Report Analysis
Fri, 21 Dec

SAIL 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.

SAIL Income Statement Analysis

  • Operating income during the year rose 29.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 6809.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.1% in FY18 as against 0.2% in FY17.
  • Depreciation charges increased by 14.3% and finance costs increased by 11.7% YoY, respectively.
  • Other income declined by 7.6% YoY.
  • Net profit for the year declined by 89.8% YoY.
  • Net profit margins during the year grew from 6.1% in FY17 to 0.5% in FY18.

SAIL Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 445,018 575,600 29.3%
Other income Rs m 4,495 4,152 -7.6%
Total Revenues Rs m 449,513 579,752 29.0%
Gross profit Rs m 671 46,356 6,809.5%
Depreciation Rs m 26,816 30,660 14.3%
Interest Rs m 25,278 28,228 11.7%
Profit before tax Rs m -46,929 -8,379 -82.1%
Tax Rs m -19,595 -2,452 -87.5%
Profit after tax Rs m -27,562 -2,814 -89.8%
Gross profit margin % 0.2 8.1
Effective tax rate % 41.8 29.3
Net profit margin % -6.1 -0.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SAIL Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 434 billion as compared to Rs 464 billion in FY17, thereby witnessing an decrease of -6.4%.
  • Long-term debt stood at Rs 298 billion as compared to Rs 191 billion during FY17, a growth of 56.0%.
  • Current assets rose 16% and stood at Rs 297 billion, while fixed assets rose 5% and stood at Rs 756 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 1,154 billion as against Rs 1,076 billion during FY17, thereby witnessing a growth of 7%.

SAIL Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 370,423 369,467 -0.3
 
Current Liabilities Rs m 463,645 434,187 -6.4
Long-term Debt Rs m 190,875 297,772 56.0
Total Liabilities Rs m 1,076,152 1,154,410 7.3
 
Current assets Rs m 256,763 297,322 15.8
Fixed Assets Rs m 720,531 755,658 4.9
Total Assets Rs m 1,076,152 1,154,410 7.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SAIL Cash Flow Statement Analysis

  • SAIL's cash flow from operating activities (CFO) during FY18 stood at Rs 62 billion, an improvement of 186.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -65 billion, an improvement of 18.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -466 million from the Rs -45 million net cash flows seen during FY17.

SAIL 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 21,601 61,831 186.2%
Cash Flow from Investing Activities Rs m -54,668 -64,992 -
Cash Flow from Financing Activities Rs m 33,021 2,694 -91.8%
Net Cash Flow Rs m -45 -466 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SAIL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.7, an improvement from the EPS of Rs -6.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 54.4, stands at 11.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.0 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 107.7 139.4
TTM Earnings per share Rs -6.7 -0.7
Diluted earnings per share Rs -6.7 -0.7
Price to Cash Flow x -83.6 9.0
TTM P/E ratio x 11.5 11.5
Price / Book Value ratio x 0.6 0.9
Market Cap Rs m 224,494 224,494
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SAIL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.7x 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 0.7x 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 -0.8% during FY18, from -7.4% 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 3.4% during FY18, from -3.9% 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 2.2% during FY18, from -0.2% 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 0.7
Debtors’ Days Days 24 25
Interest coverage x -0.9 0.7
Debt to equity ratio x 0.5 0.8
Return on assets % -0.2 2.2
Return on equity % -7.4 -0.8
Return on capital employed % -3.9 3.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

SAIL Share Price Performance

Over the last one year, SAIL share price has moved up from Rs 86.7 to Rs 54.4, registering a loss of Rs 32.4 or around 37.3%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 11,999.1 (up 0.9%). Over the last one year it has moved down from 14,536.6 to 11,999.1, a loss of 2,537 points (down 17.5%).

Overall, the S&P BSE SENSEX is up 7.8% over the year.

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

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