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HONDA SIEL POWER 2017-18 Annual Report Analysis
Sat, 31 Mar

HONDA POWER PRODUCTS 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.

HONDA POWER PRODUCTS Income Statement Analysis

  • Operating income during the year rose 13.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 6.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.5% in FY18 as against 14.4% in FY17.
  • Depreciation charges decreased by 4.0% and finance costs decreased by 23.0% YoY, respectively.
  • Other income declined by 7.6% YoY.
  • Net profit for the year grew by 6.3% YoY.
  • Net profit margins during the year declined from 8.7% in FY17 to 8.1% in FY18.

HONDA POWER PRODUCTS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 6,673 7,582 13.6%
Other income Rs m 162 149 -7.6%
Total Revenues Rs m 6,835 7,731 13.1%
Gross profit Rs m 963 1,026 6.6%
Depreciation Rs m 235 225 -4.0%
Interest Rs m 9 7 -23.0%
Profit before tax Rs m 881 943 7.1%
Tax Rs m 303 329 8.6%
Profit after tax Rs m 578 614 6.3%
Gross profit margin % 14.4 13.5
Effective tax rate % 34.4 34.9
Net profit margin % 8.7 8.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

HONDA POWER PRODUCTS Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 1 billion as compared to Rs 1 billion in FY17, thereby witnessing an increase of 9.4%.
  • Current assets rose 23% and stood at Rs 4 billion, while fixed assets fell 9% and stood at Rs 2 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 6 billion as against Rs 5 billion during FY17, thereby witnessing a growth of 12%.

HONDA POWER PRODUCTS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 4,225 4,745 12.3
 
Current Liabilities Rs m 1,110 1,214 9.4
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 5,347 5,964 11.5
 
Current assets Rs m 3,419 4,214 23.3
Fixed Assets Rs m 1,928 1,750 -9.2
Total Assets Rs m 5,347 5,964 11.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HONDA POWER PRODUCTS Cash Flow Statement Analysis

  • HONDA POWER PRODUCTS's cash flow from operating activities (CFO) during FY18 stood at Rs 550 million, an improvement of 37.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -654 million, an improvement of 388.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -94 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -199 million from the Rs 183 million net cash flows seen during FY17.

HONDA POWER PRODUCTS 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 399 550 37.9%
Cash Flow from Investing Activities Rs m -134 -654 -
Cash Flow from Financing Activities Rs m -77 -94 -
Net Cash Flow Rs m 183 -199 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HONDA POWER PRODUCTS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 60.6, an improvement from the EPS of Rs 57.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,333.3, stands at 22.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 1.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 18.0 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 658.1 747.7
TTM Earnings per share Rs 57.0 60.6
Diluted earnings per share Rs 57.0 60.5
Price to Cash Flow x 16.7 18.0
TTM P/E ratio x 23.8 22.0
Price / Book Value ratio x 3.5 3.2
Market Cap Rs m 14,758 15,068
Dividends per share (Unadj.) Rs 7.5 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HONDA POWER PRODUCTS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.5x during FY18, from 3.1x 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 141.8x during FY18, from 102.3x 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 12.9% during FY18, from 13.7% 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 declined and down at 20.0% during FY18, from 21.1% 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 10.4% during FY18, from 11.0% 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 3.1 3.5
Debtors’ Days Days 144 306
Interest coverage x 102.3 141.8
Debt to equity ratio x 0.0 0.0
Return on assets % 11.0 10.4
Return on equity % 13.7 12.9
Return on capital employed % 21.1 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how HONDA POWER PRODUCTS has performed over the last 5 years, please visit here.

HONDA POWER PRODUCTS Share Price Performance

Over the last one year, HONDA POWER PRODUCTS share price has moved down from Rs 1,340.5 to Rs 1,333.3, registering a loss of Rs 7.2 or around 0.5%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 22,261.9 (up 0.2%). Over the last one year it has moved up from 15,257.3 to 22,261.9, a gain of 7,005 points (up 45.9%).

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

(To know more, check out historical annual results for HONDA POWER PRODUCTS and quarterly results for HONDA POWER PRODUCTS)

Annual Report FAQs

What is the current share price of HONDA POWER PRODUCTS?

HONDA POWER PRODUCTS currently trades at Rs 2,218.7 per share. You can check out the latest share price performance of HONDA POWER PRODUCTS here...

What was the revenue of HONDA POWER PRODUCTS in FY18? How does it compare to earlier years?

The revenues of HONDA POWER PRODUCTS stood at Rs 7,731 m in FY18, which was up 13.1% compared to Rs 6,835 m reported in FY17.

HONDA POWER PRODUCTS' revenue has grown from Rs 5,087 m in FY14 to Rs 7,731 m in FY18.

Over the past 5 years, the revenue of HONDA POWER PRODUCTS has grown at a CAGR of 11.0%.

What was the net profit of HONDA POWER PRODUCTS in FY18? How does it compare to earlier years?

The net profit of HONDA POWER PRODUCTS stood at Rs 614 m in FY18, which was up 6.3% compared to Rs 578 m reported in FY17.

This compares to a net profit of Rs 488 m in FY16 and a net profit of Rs 386 m in FY15.

Over the past 5 years, HONDA POWER PRODUCTS net profit has grown at a CAGR of 34.5%.

What does the cash flow statement of HONDA POWER PRODUCTS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of HONDA POWER PRODUCTS reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 550 m as compared to Rs 399 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -654 m as compared to Rs -134 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -94 m as compared to Rs -77 m in FY17.

Here's the cash flow statement of HONDA POWER PRODUCTS for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations1594291,011399550
From Investments-125-435-863-134-654
From Financial Activity-47-47-73-77-94
Net Cashflow-14-5474183-199

What does the Key Ratio analysis of HONDA POWER PRODUCTS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of HONDA POWER PRODUCTS reveals:

  • Operating profit margins witnessed a fall and stood at 13.5% in FY18 as against 14.4% in FY17.
  • Net profit margins declined from 8.7% in FY17 to 8.1% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.0 in FY17.

Here's the ratio/financial analysis of HONDA POWER PRODUCTS for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)8.412.113.614.413.5
Net Profit Margin (%)3.76.47.68.78.1
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of HONDA POWER PRODUCTS

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