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SKF INDIA 2017-18 Annual Report Analysis
Sat, 31 Mar

SKF INDIA 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.

SKF INDIA Income Statement Analysis

  • Operating income during the year rose 11.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 29.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.1% in FY18 as against 13.8% in FY17.
  • Depreciation charges decreased by 4.5% increased by 0.0% YoY, respectively.
  • Other income declined by 18.3% YoY.
  • Net profit for the year grew by 21.3% YoY.
  • Net profit margins during the year grew from 10.0% in FY17 to 11.0% in FY18.

SKF INDIA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 24,273 26,960 11.1%
Other income Rs m 873 714 -18.3%
Total Revenues Rs m 25,146 27,674 10.1%
Gross profit Rs m 3,362 4,348 29.4%
Depreciation Rs m 479 457 -4.5%
Interest Rs m 0 50 0.0%
Profit before tax Rs m 3,756 4,555 21.3%
Tax Rs m 1,317 1,596 21.2%
Profit after tax Rs m 2,439 2,959 21.3%
Gross profit margin % 13.8 16.1
Effective tax rate % 35.1 35.0
Net profit margin % 10.0 11.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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SKF INDIA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 6 billion as compared to Rs 5 billion in FY17, thereby witnessing an increase of 24.8%.
  • Current assets rose 4% and stood at Rs 19 billion, while fixed assets rose 13% and stood at Rs 5 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 24 billion as against Rs 23 billion during FY17, thereby witnessing a growth of 6%.

SKF INDIA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 18,112 18,373 1.4
 
Current Liabilities Rs m 4,635 5,784 24.8
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 22,925 24,263 5.8
 
Current assets Rs m 18,197 18,931 4.0
Fixed Assets Rs m 4,728 5,333 12.8
Total Assets Rs m 22,925 24,263 5.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SKF INDIA Cash Flow Statement Analysis

  • SKF INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion, an improvement of 219.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -1 billion from the Rs 1 billion net cash flows seen during FY17.

SKF INDIA 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 1,150 3,672 219.4%
Cash Flow from Investing Activities Rs m 1,471 -2,649 -
Cash Flow from Financing Activities Rs m -1,262 -2,253 -
Net Cash Flow Rs m 1,359 -1,230 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SKF INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 57.6, an improvement from the EPS of Rs 46.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,742.7, stands at 29.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 3.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 26.3 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 460.3 525.1
TTM Earnings per share Rs 46.3 57.6
Diluted earnings per share Rs 49.3 59.9
Price to Cash Flow x 26.8 26.3
TTM P/E ratio x 32.0 29.1
Price / Book Value ratio x 4.1 4.9
Market Cap Rs m 73,611 89,833
Dividends per share (Unadj.) Rs 10.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SKF INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.3x during FY18, from 3.9x 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 92.6x during FY18, from 0.0x 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 16.1% during FY18, from 13.5% 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 improved and stood at 25.1% during FY18, from 20.7% 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 12.4% during FY18, from 10.6% 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 3.9 3.3
Debtors’ Days Days 77 66
Interest coverage x 0.0 92.6
Debt to equity ratio x 0.0 0.0
Return on assets % 10.6 12.4
Return on equity % 13.5 16.1
Return on capital employed % 20.7 25.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how SKF INDIA has performed over the last 5 years, please visit here.

SKF INDIA Share Price Performance

Over the last one year, SKF INDIA share price has moved up from Rs 1,580.7 to Rs 1,742.7, registering a gain of Rs 162.0 or around 10.2%.

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

(To know more, check out historical annual results for SKF INDIA and quarterly results for SKF INDIA)

Annual Report FAQs

What is the current share price of SKF INDIA?

SKF INDIA currently trades at Rs 4,248.8 per share. You can check out the latest share price performance of SKF INDIA here...

What was the revenue of SKF INDIA in FY18? How does it compare to earlier years?

The revenues of SKF INDIA stood at Rs 27,674 m in FY18, which was up 10.1% compared to Rs 25,146 m reported in FY17.

SKF INDIA's revenue has grown from Rs 21,796 m in FY13 to Rs 27,674 m in FY18.

Over the past 6 years, the revenue of SKF INDIA has grown at a CAGR of 4.9%.

What was the net profit of SKF INDIA in FY18? How does it compare to earlier years?

The net profit of SKF INDIA stood at Rs 2,959 m in FY18, which was up 21.3% compared to Rs 2,439 m reported in FY17.

This compares to a net profit of Rs 2,559 m in FY16 and a net profit of Rs 2,028 m in FY14.

Over the past 6 years, SKF INDIA net profit has grown at a CAGR of 12.2%.

What does the cash flow statement of SKF INDIA 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 SKF INDIA reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 3,672 m as compared to Rs 1,150 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -2,649 m as compared to Rs 1,471 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -2,253 m as compared to Rs -1,262 m in FY17.

Here's the cash flow statement of SKF INDIA for the past 6 years.

(Rs m)FY13FY14FY16FY17FY18
From Operations1,2182,1772621,1503,672
From Investments-1,650-27-1,7391,471-2,649
From Financial Activity-463-925491-1,262-2,253
Net Cashflow-8951,225-9851,359-1,230

What does the Key Ratio analysis of SKF INDIA 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 SKF INDIA reveals:

  • Operating profit margins witnessed a fall and down at 16.1% in FY18 as against 13.8% in FY17.
  • Net profit margins grew from 10.0% in FY17 to 11.0% 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 SKF INDIA for the past 6 years.

 FY13FY14FY16FY17FY18
Operating Profit Margin (%)11.312.413.113.816.1
Net Profit Margin (%)7.99.09.210.011.0
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of SKF INDIA

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