SANGHVI MOVERS 2017-18 Annual Report Analysis

Sat, 31 Mar

SANGHVI MOVERS 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.

SANGHVI MOVERS Income Statement Analysis

• Operating income during the year fell 58.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 77.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 36.6% in FY18 as against 66.3% in FY17.
• Depreciation charges decreased by 8.8% and finance costs decreased by 15.4% YoY, respectively.
• Other income grew by 105.8% YoY.
• Net profit for the year declined by 152.6% YoY.
• Net profit margins during the year declined from 19.7% in FY17 to 25.2% in FY18.

SANGHVI MOVERS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	5,531	2,284	-58.7%
Other income	Rs m	97	201	105.8%
Total Revenues	Rs m	5,629	2,485	-55.9%
Gross profit	Rs m	3,665	836	-77.2%
Depreciation	Rs m	1,500	1,367	-8.8%
Interest	Rs m	647	547	-15.4%
Profit before tax	Rs m	1,615	-879	-154.4%
Tax	Rs m	523	-304	-158.1%
Profit after tax	Rs m	1,092	-575	-152.6%
Gross profit margin	%	66.3	36.6
Effective tax rate	%	32.4	34.6
Net profit margin	%	19.7	-25.2

SANGHVI MOVERS Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 1 billion as compared to Rs 2 billion in FY17, thereby witnessing an decrease of -23.7%.
• Long-term debt stood at Rs 5 billion as compared to Rs 4 billion during FY17, a growth of 12.0%.
• Current assets fell 20% and stood at Rs 2 billion, while fixed assets fell 4% and stood at Rs 13 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 14 billion as against Rs 15 billion during FY17, thereby witnessing a fall of 6%.

SANGHVI MOVERS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	8,614	7,890	-8.4
Current Liabilities	Rs m	1,797	1,372	-23.7
Long-term Debt	Rs m	4,099	4,589	12.0
Total Liabilities	Rs m	15,431	14,454	-6.3
Current assets	Rs m	2,177	1,732	-20.5
Fixed Assets	Rs m	13,254	12,722	-4.0
Total Assets	Rs m	15,431	14,454	-6.3

SANGHVI MOVERS Cash Flow Statement Analysis

• SANGHVI MOVERS's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -444 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -819 million, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 1 million from the Rs -10 million net cash flows seen during FY17.

SANGHVI MOVERS 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	3,113	1,264	-59.4%
Cash Flow from Investing Activities	Rs m	-1,888	-444	-
Cash Flow from Financing Activities	Rs m	-1,235	-819	-
Net Cash Flow	Rs m	-10	1	-

Current Valuations for SANGHVI MOVERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -13.3, an decline from the EPS of Rs 25.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 177.1, stands at -13.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 3.4 times.
• The company's price to cash flow (P/CF) ratio stood at 11.0 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	127.8	52.8
TTM Earnings per share	Rs	25.2	-13.3
Diluted earnings per share	Rs	25.2	-13.3
Price to Cash Flow	x	4.1	11.0
TTM P/E ratio	x	9.7	-13.3
Price / Book Value ratio	x	1.3	1.1
Market Cap	Rs m	10,861	8,746
Dividends per share (Unadj.)	Rs	4.0	0.0

Ratio Analysis for SANGHVI MOVERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY18, from 1.2x 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 -0.6x during FY18, from 3.5x 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 -7.3% during FY18, from 12.7% 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 -2.7% during FY18, from 17.8% 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 -0.2% during FY18, from 11.3% 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	1.2	1.3
Debtors’ Days	Days	1,094	2,150
Interest coverage	x	3.5	-0.6
Debt to equity ratio	x	0.5	0.6
Return on assets	%	11.3	-0.2
Return on equity	%	12.7	-7.3
Return on capital employed	%	17.8	-2.7

To see how SANGHVI MOVERS has performed over the last 5 years, please visit here.

SANGHVI MOVERS Share Price Performance

Over the last one year, SANGHVI MOVERS share price has moved down from Rs 243.7 to Rs 177.1, registering a loss of Rs 66.6 or around 27.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

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

(To know more, check out historical annual results for SANGHVI MOVERS and quarterly results for SANGHVI MOVERS)

Read: Latest Annual Report Analysis of SANGHVI MOVERS