SANGAM INDIA 2017-18 Annual Report Analysis

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SANGAM INDIA 2017-18 Annual Report Analysis
Tue, 18 Dec

SANGAM INDIA 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.

SANGAM INDIA Income Statement Analysis

  • Operating income during the year rose 2.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 28.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.6% in FY18 as against 10.9% in FY17.
  • Depreciation charges increased by 6.2% and finance costs decreased by 1.2% YoY, respectively.
  • Other income grew by 8.1% YoY.
  • Net profit for the year declined by 45.9% YoY.
  • Net profit margins during the year declined from 3.3% in FY17 to 1.7% in FY18.

SANGAM INDIA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 15,914 16,373 2.9%
Other income Rs m 233 252 8.1%
Total Revenues Rs m 16,148 16,625 3.0%
Gross profit Rs m 1,736 1,247 -28.2%
Depreciation Rs m 726 771 6.2%
Interest Rs m 636 628 -1.2%
Profit before tax Rs m 608 100 -83.5%
Tax Rs m 78 -186 -337.5%
Profit after tax Rs m 529 286 -45.9%
Gross profit margin % 10.9 7.6
Effective tax rate % 12.9 -186.2
Net profit margin % 3.3 1.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SANGAM INDIA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 7 billion as compared to Rs 6 billion in FY17, thereby witnessing an increase of 20.4%.
  • Long-term debt stood at Rs 3 billion as compared to Rs 3 billion during FY17, a growth of 5.3%.
  • Current assets rose 15% and stood at Rs 9 billion, while fixed assets rose 7% and stood at Rs 7 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 16 billion as against Rs 14 billion during FY17, thereby witnessing a growth of 11%.

SANGAM INDIA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 4,919 5,118 4.0
 
Current Liabilities Rs m 5,652 6,808 20.4
Long-term Debt Rs m 3,271 3,443 5.3
Total Liabilities Rs m 14,284 15,798 10.6
 
Current assets Rs m 7,388 8,505 15.1
Fixed Assets Rs m 6,656 7,090 6.5
Total Assets Rs m 14,284 15,798 10.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SANGAM INDIA Cash Flow Statement Analysis

  • SANGAM INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 953 million 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 76 million, an improvement of 153% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -40 million from the Rs 21 million net cash flows seen during FY17.

SANGAM INDIA 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 1,475 953 -35.4%
Cash Flow from Investing Activities Rs m -1,312 -1,068 -
Cash Flow from Financing Activities Rs m -142 76 -
Net Cash Flow Rs m 21 -40 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SANGAM INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.3, an decline from the EPS of Rs 13.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 72.1, stands at 6.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 2.7 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 403.7 415.3
TTM Earnings per share Rs 13.4 7.3
Diluted earnings per share Rs 13.4 7.3
Price to Cash Flow x 2.3 2.7
TTM P/E ratio x 6.6 6.6
Price / Book Value ratio x 2.2 1.7
Market Cap Rs m 2,840 2,840
Dividends per share (Unadj.) Rs 2.0 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SANGAM INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during FY18, from 1.3x 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 1.2x during FY18, from 2.0x 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 5.6% during FY18, from 10.8% 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 8.5% during FY18, from 15.2% 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 declined and down at 5.8% during FY18, from 8.2% 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 1.3 1.2
Debtors’ Days Days 58 71
Interest coverage x 2.0 1.2
Debt to equity ratio x 0.7 0.7
Return on assets % 8.2 5.8
Return on equity % 10.8 5.6
Return on capital employed % 15.2 8.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

SANGAM INDIA Share Price Performance

Over the last one year, SANGAM INDIA share price has moved up from Rs 196.9 to Rs 0.0, registering a loss of Rs 196.9 or around 100.0%.

Overall, the NIFTY 50 is down 0.5% over the year.

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

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Related Views on News

SANGAM INDIA Announces Quarterly Results (2QFY20); Net Profit Down 67.4% (Quarterly Result Update)

Nov 6, 2019 | Updated on Nov 6, 2019

For the quarter ended September 2019, SANGAM INDIA has posted a net profit of Rs 32 m (down 67.4% YoY). Sales on the other hand came in at Rs 5 bn (up 3.5% YoY). Read on for a complete analysis of SANGAM INDIA's quarterly results.

SANGAM INDIA Announces Quarterly Results (1QFY20); Net Profit Down 74.2% (Quarterly Result Update)

Jul 17, 2019 | Updated on Jul 17, 2019

For the quarter ended June 2019, SANGAM INDIA has posted a net profit of Rs 11 m (down 74.2% YoY). Sales on the other hand came in at Rs 5 bn (down 3.6% YoY). Read on for a complete analysis of SANGAM INDIA's quarterly results.

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