Markets will remain closed on April 17, 2024 on account of Ram Navami.

SPML INFRA 2017-18 Annual Report Analysis

Sat, 31 Mar

SPML INFRA 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.

SPML INFRA Income Statement Analysis

• Operating income during the year fell 9.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 32.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.5% in FY18 as against 7.2% in FY17.
• Depreciation charges decreased by 20.4% and finance costs decreased by 18.0% YoY, respectively.
• Other income declined by 37.8% YoY.
• Net profit for the year declined by 342.1% YoY.
• Net profit margins during the year grew from 0.6% in FY17 to 1.7% in FY18.

SPML INFRA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	22,758	20,495	-9.9%
Other income	Rs m	976	607	-37.8%
Total Revenues	Rs m	23,734	21,102	-11.1%
Gross profit	Rs m	1,631	2,157	32.2%
Depreciation	Rs m	211	168	-20.4%
Interest	Rs m	2,604	2,136	-18.0%
Profit before tax	Rs m	-208	460	-321.2%
Tax	Rs m	-65	114	-275.2%
Profit after tax	Rs m	-143	346	-342.1%
Gross profit margin	%	7.2	10.5
Effective tax rate	%	31.2	24.7
Net profit margin	%	-0.6	1.7

For You: Midcap Stocks Research at Less than Its Launch Price

SPML INFRA Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 19 billion as compared to Rs 21 billion in FY17, thereby witnessing an decrease of -6.2%.
• Long-term debt stood at Rs 7 billion as compared to Rs 3 billion during FY17, a growth of 155.0%.
• Current assets rose 22% and stood at Rs 21 billion, while fixed assets fell 1% and stood at Rs 12 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 33 billion as against Rs 29 billion during FY17, thereby witnessing a growth of 12%.

SPML INFRA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	3,804	4,649	22.2
Current Liabilities	Rs m	20,704	19,428	-6.2
Long-term Debt	Rs m	2,881	7,348	155.0
Total Liabilities	Rs m	29,452	33,096	12.4
Current assets	Rs m	16,993	20,742	22.1
Fixed Assets	Rs m	12,459	12,354	-0.8
Total Assets	Rs m	29,452	33,096	12.4

SPML INFRA Cash Flow Statement Analysis

• SPML INFRA's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 676 million 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 -181 million from the Rs -30 million net cash flows seen during FY17.

SPML INFRA 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	-1,609	2,343	-
Cash Flow from Investing Activities	Rs m	1,083	676	-37.6%
Cash Flow from Financing Activities	Rs m	688	-3,303	-
Net Cash Flow	Rs m	-30	-181	-

Current Valuations for SPML INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.5, an improvement from the EPS of Rs -3.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 88.0, stands at 8.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 8.8 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	621.0	559.2
TTM Earnings per share	Rs	-3.9	9.5
Diluted earnings per share	Rs	-3.4	8.1
Price to Cash Flow	x	37.9	8.8
TTM P/E ratio	x	18.0	8.7
Price / Book Value ratio	x	0.8	1.0
Market Cap	Rs m	2,886	4,535
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SPML INFRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 0.8x 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 1.2x 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 7.5% during FY18, from -3.8% 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 declined and down at 21.6% during FY18, from 35.8% 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 7.5% during FY18, from 8.4% 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	0.8	1.1
Debtors’ Days	Days	1,044	1,159
Interest coverage	x	0.9	1.2
Debt to equity ratio	x	0.8	1.6
Return on assets	%	8.4	7.5
Return on equity	%	-3.8	7.5
Return on capital employed	%	35.8	21.6

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

SPML INFRA Share Price Performance

Over the last one year, SPML INFRA share price has moved up from Rs 60.6 to Rs 88.0, registering a gain of Rs 27.4 or around 45.1%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,229.9 (down 1.1%). Over the last one year it has moved up from 1,600.0 to 2,229.9, a gain of 630 points (up 39.4%).

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

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

Read: Latest Annual Report Analysis of SPML INFRA