SUNDARAM CLAYTON 2017-18 Annual Report Analysis

Sat, 31 Mar

SUNDARAM CLAYTON 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.

SUNDARAM CLAYTON Income Statement Analysis

• Operating income during the year rose 39.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 50.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.8% in FY18 as against 8.2% in FY17.
• Depreciation charges increased by 18.3% and finance costs increased by 321.9% YoY, respectively.
• Other income declined by 13.4% YoY.
• Net profit for the year grew by 14.9% YoY.
• Net profit margins during the year declined from 4.5% in FY17 to 3.7% in FY18.

SUNDARAM CLAYTON Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	122,661	171,209	39.6%
Other income	Rs m	1,713	1,484	-13.4%
Total Revenues	Rs m	124,374	172,693	38.8%
Gross profit	Rs m	10,033	15,096	50.5%
Depreciation	Rs m	3,775	4,467	18.3%
Interest	Rs m	882	3,719	321.9%
Profit before tax	Rs m	7,089	8,394	18.4%
Tax	Rs m	1,627	2,120	30.2%
Profit after tax	Rs m	5,462	6,274	14.9%
Gross profit margin	%	8.2	8.8
Effective tax rate	%	23.0	25.3
Net profit margin	%	4.5	3.7

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SUNDARAM CLAYTON Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 86 billion as compared to Rs 36 billion in FY17, thereby witnessing an increase of 136.9%.
• Long-term debt stood at Rs 26 billion as compared to Rs 6 billion during FY17, a growth of 323.7%.
• Current assets rose 145% and stood at Rs 71 billion, while fixed assets rose 74% and stood at Rs 77 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 148 billion as against Rs 73 billion during FY17, thereby witnessing a growth of 102%.

SUNDARAM CLAYTON Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	18,670	21,514	15.2
Current Liabilities	Rs m	36,453	86,352	136.9
Long-term Debt	Rs m	6,228	26,390	323.7
Total Liabilities	Rs m	73,171	147,610	101.7
Current assets	Rs m	28,956	70,827	144.6
Fixed Assets	Rs m	44,215	76,783	73.7
Total Assets	Rs m	73,171	147,610	101.7

SUNDARAM CLAYTON Cash Flow Statement Analysis

• SUNDARAM CLAYTON's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -14 billion, an improvement of 68.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 12 billion, an improvement of 2,065% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 1 billion from the Rs -401 million net cash flows seen during FY17.

SUNDARAM CLAYTON 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	8,384	3,245	-61.3%
Cash Flow from Investing Activities	Rs m	-8,176	-13,794	-
Cash Flow from Financing Activities	Rs m	-610	11,978	-
Net Cash Flow	Rs m	-401	1,429	-

Current Valuations for SUNDARAM CLAYTON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 310.2, an improvement from the EPS of Rs 270.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,874.7, stands at 179.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 9.1 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	6,063.3	8,463.1
TTM Earnings per share	Rs	270.0	310.2
Diluted earnings per share	Rs	270.0	310.1
Price to Cash Flow	x	8.0	9.1
TTM P/E ratio	x	69.9	179.6
Price / Book Value ratio	x	3.2	4.6
Market Cap	Rs m	59,594	98,176
Dividends per share (Unadj.)	Rs	31.5	15.0

Ratio Analysis for SUNDARAM CLAYTON

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x 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 deteriorated and stood at 3.3x during FY18, from 9.0x 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 declined and down at 29.2% during FY18, from 29.3% 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 25.3% during FY18, from 32.0% 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 6.8% during FY18, from 8.7% 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	0.8
Debtors’ Days	Days	3	3
Interest coverage	x	9.0	3.3
Debt to equity ratio	x	0.3	1.2
Return on assets	%	8.7	6.8
Return on equity	%	29.3	29.2
Return on capital employed	%	32.0	25.3

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

SUNDARAM CLAYTON Share Price Performance

Over the last one year, SUNDARAM CLAYTON share price has moved up from Rs 3,648.5 to Rs 4,874.7, registering a gain of Rs 1,226.2 or around 33.6%.

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

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

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