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SHIPPING CORP. 2017-18 Annual Report Analysis

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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.)

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For the quarter ended December 2018, SHIPPING CORP. has posted a net profit of Rs 2 bn (up 119.7% YoY). Sales on the other hand came in at Rs 11 bn (up 22.2% YoY). Read on for a complete analysis of SHIPPING CORP.'s quarterly results.

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