SUPRAJIT ENGINEERING 2017-18 Annual Report Analysis

Sat, 31 Mar

SUPRAJIT 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.

SUPRAJIT ENGINEERING Income Statement Analysis

• Operating income during the year rose 26.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.8% in FY18 as against 18.2% in FY17.
• Depreciation charges increased by 35.8% and finance costs decreased by 11.1% YoY, respectively.
• Other income grew by 5.1% YoY.
• Net profit for the year grew by 21.8% YoY.
• Net profit margins during the year declined from 10.2% in FY17 to 9.8% in FY18.

SUPRAJIT ENGINEERING Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	11,102	14,075	26.8%
Other income	Rs m	202	212	5.1%
Total Revenues	Rs m	11,304	14,287	26.4%
Gross profit	Rs m	2,019	2,365	17.2%
Depreciation	Rs m	274	372	35.8%
Interest	Rs m	305	271	-11.1%
Profit before tax	Rs m	1,642	1,934	17.8%
Tax	Rs m	504	549	8.9%
Profit after tax	Rs m	1,137	1,385	21.8%
Gross profit margin	%	18.2	16.8
Effective tax rate	%	30.7	28.4
Net profit margin	%	10.2	9.8

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SUPRAJIT ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 5 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 39.7%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY17, a fall of 44.1%.
• Current assets rose 32% and stood at Rs 7 billion, while fixed assets fell 1% and stood at Rs 6 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 13 billion as against Rs 11 billion during FY17, thereby witnessing a growth of 15%.

SUPRAJIT ENGINEERING Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	5,242	6,549	24.9
Current Liabilities	Rs m	3,404	4,754	39.7
Long-term Debt	Rs m	1,927	1,076	-44.1
Total Liabilities	Rs m	11,347	13,018	14.7
Current assets	Rs m	5,514	7,272	31.9
Fixed Assets	Rs m	5,833	5,746	-1.5
Total Assets	Rs m	11,347	13,018	14.7

SUPRAJIT ENGINEERING Cash Flow Statement Analysis

• SUPRAJIT ENGINEERING's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 72.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -845 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 96 million from the Rs 33 million net cash flows seen during FY17.

SUPRAJIT 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	1,258	2,173	72.7%
Cash Flow from Investing Activities	Rs m	-1,687	-1,250	-
Cash Flow from Financing Activities	Rs m	467	-845	-
Net Cash Flow	Rs m	33	96	190.2%

Current Valuations for SUPRAJIT ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.9, an improvement from the EPS of Rs 8.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 279.6, stands at 37.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 22.8 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	79.4	100.6
TTM Earnings per share	Rs	8.1	9.9
Diluted earnings per share	Rs	8.2	10.0
Price to Cash Flow	x	23.6	22.8
TTM P/E ratio	x	51.9	37.0
Price / Book Value ratio	x	5.0	6.1
Market Cap	Rs m	26,065	40,073
Dividends per share (Unadj.)	Rs	1.1	1.4

Ratio Analysis for SUPRAJIT ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY18, from 1.6x 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 improved and stood at 8.1x during FY18, from 6.4x 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 21.1% during FY18, from 21.7% 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 28.9% during FY18, from 27.2% 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 12.7% during FY18, from 12.7% 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	1.6	1.5
Debtors’ Days	Days	80	75
Interest coverage	x	6.4	8.1
Debt to equity ratio	x	0.4	0.2
Return on assets	%	12.7	12.7
Return on equity	%	21.7	21.1
Return on capital employed	%	27.2	28.9

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

SUPRAJIT ENGINEERING Share Price Performance

Over the last one year, SUPRAJIT ENGINEERING share price has moved up from Rs 241.0 to Rs 279.6, registering a gain of Rs 38.6 or around 16.0%.

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

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

Read: Latest Annual Report Analysis of SUPRAJIT ENGINEERING