SHIPPING CORP. 2017-18 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

SHIPPING CORP. 2017-18 Annual Report Analysis
Tue, 19 Mar

SHIPPING CORP. 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.

SHIPPING CORP. Income Statement Analysis

  • Operating income during the year rose 0.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 13.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.4% in FY18 as against 22.6% in FY17.
  • Depreciation charges increased by 7.8% and finance costs increased by 4.4% YoY, respectively.
  • Other income grew by 1.9% YoY.
  • Net profit for the year grew by 68.1% YoY.
  • Net profit margins during the year grew from 5.1% in FY17 to 8.5% in FY18.

SHIPPING CORP. Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 34,474 34,695 0.6%
Other income Rs m 1,452 1,480 1.9%
Total Revenues Rs m 35,926 36,175 0.7%
Gross profit Rs m 7,787 6,715 -13.8%
Depreciation Rs m 5,661 6,103 7.8%
Interest Rs m 1,722 1,798 4.4%
Profit before tax Rs m 1,857 295 -84.1%
Tax Rs m 435 -2,243 -615.8%
Profit after tax Rs m 1,824 3,065 68.1%
Gross profit margin % 22.6 19.4
Effective tax rate % 23.4 -760.8
Net profit margin % 5.1 8.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SHIPPING CORP. Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 38 billion as compared to Rs 41 billion in FY17, thereby witnessing an decrease of -7.3%.
  • Long-term debt stood at Rs 33 billion as compared to Rs 31 billion during FY17, a growth of 7.4%.
  • Current assets fell 1% and stood at Rs 27 billion, while fixed assets fell 0% and stood at Rs 116 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 145 billion as against Rs 145 billion during FY17, thereby witnessing a fall of 0%.

SHIPPING CORP. Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 68,941 72,342 4.9
 
Current Liabilities Rs m 41,025 38,016 -7.3
Long-term Debt Rs m 30,776 33,066 7.4
Total Liabilities Rs m 145,486 145,373 -0.1
 
Current assets Rs m 27,357 27,089 -1.0
Fixed Assets Rs m 115,730 115,661 -0.1
Total Assets Rs m 145,486 145,373 -0.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SHIPPING CORP. Cash Flow Statement Analysis

  • SHIPPING CORP.'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 -5 billion, an improvement of 448.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -871 million, an improvement of 83% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -3 billion from the Rs 745 million net cash flows seen during FY17.

SHIPPING CORP. 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 6,825 2,472 -63.8%
Cash Flow from Investing Activities Rs m -858 -4,708 -
Cash Flow from Financing Activities Rs m -5,224 -871 -
Net Cash Flow Rs m 745 -3,107 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SHIPPING CORP.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.6, 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 37.5, stands at 5.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 2.0 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 74.0 74.5
TTM Earnings per share Rs 3.9 6.6
Diluted earnings per share Rs 3.9 6.6
Price to Cash Flow x 2.5 2.0
TTM P/E ratio x 5.3 5.3
Price / Book Value ratio x 0.5 0.6
Market Cap Rs m 17,444 17,444
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 SHIPPING CORP.

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.7x during FY18, from 0.7x 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 2.1x 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 4.2% during FY18, from 2.6% 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 2.5% during FY18, from 4.0% 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 improved and stood at 3.3% during FY18, from 2.4% 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 0.7 0.7
Debtors’ Days Days 70 64
Interest coverage x 2.1 1.2
Debt to equity ratio x 0.4 0.5
Return on assets % 2.4 3.3
Return on equity % 2.6 4.2
Return on capital employed % 4.0 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

SHIPPING CORP. Share Price Performance

Over the last one year, SHIPPING CORP. share price has moved up from Rs 65.1 to Rs 37.5, registering a loss of Rs 27.7 or around 42.5%.

Overall, the S&P BSE SENSEX is up 15.9% over the year.

(To know more, check out historical annual results for SHIPPING CORP. and quarterly results for SHIPPING CORP.)

Equitymaster requests your view! Post a comment on "SHIPPING CORP. 2017-18 Annual Report Analysis". Click here!

  

Related Views on News

SHIPPING CORP. Announces Quarterly Results (1QFY20); Net Loss Down 80.9% (Quarterly Result Update)

Aug 19, 2019 | Updated on Aug 19, 2019

For the quarter ended June 2019, SHIPPING CORP. has posted a net loss of Rs 394 mn. Sales on the other hand came in at Rs 9 bn (up 4.3% YoY). Read on for a complete analysis of SHIPPING CORP.'s quarterly results.

SHIPPING CORP. Announces Quarterly Results (4QFY19); Net Profit Down 81.9% (Quarterly Result Update)

May 30, 2019 | Updated on May 30, 2019

For the quarter ended March 2019, SHIPPING CORP. has posted a net profit of Rs 460 m (down 81.9% YoY). Sales on the other hand came in at Rs 10 bn (up 11.1% YoY). Read on for a complete analysis of SHIPPING CORP.'s quarterly results.

More Views on News

Most Popular

My Latest Stock Recommendation(Fast Profits Daily)

Jan 10, 2020

The story behind my latest stock recommendation and an important announcement.

Bet on These Smallcap Stocks for Success in 2020(Profit Hunter)

Jan 14, 2020

The smallcap rebound finally seems to here... Make sure you aren't too late to make the most of the biggest wealth making opportunity in a decade.

Guess Which Stocks Are Rising at Double the Speed of Sensex(Profit Hunter)

Jan 15, 2020

These stocks can move twice as fast as the Sensex - to take advantage of their money multiplying power get in now as the rally is still just taking shape.. read more to not miss out.

What the Infosys Results Tell Us About the Next Infosys(The 5 Minute Wrapup)

Jan 15, 2020

If you're interested in the next Infosys, I'll tell you where to look.

For 1,000%+ Gains, Follow the 8-Year Cycle in the Stock Market(Fast Profits Daily)

Jan 17, 2020

This is how the biggest trading profits are made.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get our special report, Secret to Increasing Your Trading Profits Today Now!
We will never sell or rent your email id.
Please read our Terms

TRACK SHIPPING CORP.

  • Track your investment in SHIPPING CORP. with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON SHIPPING CORP.

SHIPPING CORP. - MERCATOR LTD COMPARISON

COMPARE SHIPPING CORP. WITH

MARKET STATS