HONDA SIEL POWER 2017-18 Annual Report Analysis

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HONDA SIEL POWER 2017-18 Annual Report Analysis
Thu, 16 Aug

HONDA SIEL POWER 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 SIEL POWER Income Statement Analysis

  • Operating income during the year rose 9.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 6.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.2% in FY18 as against 13.6% in FY17.
  • Depreciation charges and finance costs decreased by 4.0% YoY and 40.0% YoY, respectively.
  • Other income declined by 4.3% YoY.
  • Net profit for the year grew by 6.3% YoY.
  • Net profit margins during the year declined from 8.0% in FY17 to 7.8% in FY18.

HONDA SIEL POWER Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 7,018 7,678 9.4%
Other income Rs m 162 155 -4.3%
Total Revenues Rs m 7,180 7,833 9.1%
Gross profit Rs m 958 1,016 6.1%
Depreciation Rs m 235 225 -4.0%
Interest Rs m 4 2 -40.0%
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 % 13.6 13.2
Effective tax rate % 34.4 34.9
Net profit margin % 8.0 7.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HONDA SIEL POWER 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 8.7%.
  • Current assets rose 24% and stood at Rs 4 billion, while fixed assets fell 5% and stood at Rs 1 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 SIEL POWER 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 1,206 8.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 5,337 5,965 11.8
 
Current assets Rs m 3,419 4,235 23.9
Fixed Assets Rs m 1,071 1,017 -5.0
Total Assets Rs m 5,337 5,965 11.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HONDA SIEL POWER Cash Flow Statement Analysis

  • HONDA SIEL POWER'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 SIEL POWER 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: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HONDA SIEL POWER

  • 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 1,244.0, stands at 20.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.0 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 692.1 757.2
TTM Earnings per share Rs 57.0 60.6
Diluted earnings per share Rs 57.0 60.6
Price to Cash Flow x 15.5 15.0
TTM P/E ratio x 20.5 20.5
Price / Book Value ratio x 3.5 3.2
Market Cap Rs m 12,614 12,614
Dividends per share (Unadj.) Rs 7.5 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for HONDA SIEL POWER

  • 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 deteriorated and stood at 394.1x during FY18, from 221.3x 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 19.9% during FY18, from 20.9% 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 10.3% during FY18, from 10.9% 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 14 30
Interest coverage x 221.3 394.1
Debt to equity ratio x 0.0 0.0
Return on assets % 10.9 10.3
Return on equity % 13.7 12.9
Return on capital employed % 20.9 19.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

HONDA SIEL POWER Share Price Performance

Over the last one year, HONDA SIEL POWER share price has moved up from Rs 1,446.4 to Rs 1,244.0, registering a loss of Rs 202.4 or around 14.0%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 21,860.6 (down 0.9%). Over the last one year it has moved up from 17,623.3 to 21,860.6, a gain of 4,237 points (up 24.0%).

Overall, the S&P BSE SENSEX is up 19.8% over the year.

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

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For the quarter ended June 2019, HONDA SIEL POWER has posted a net profit of Rs 176 m (up 34.7% YoY). Sales on the other hand came in at Rs 2 bn (up 13.3% YoY). Read on for a complete analysis of HONDA SIEL POWER's quarterly results.

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