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SKF INDIA 2017-18 Annual Report Analysis

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SKF INDIA 2017-18 Annual Report Analysis
Tue, 14 Aug

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 4.5% 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 15.8% in FY18 as against 12.8% in FY17.
  • Depreciation charges decreased by 4.5% YoY.
  • 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 9.0% in FY17 to 10.5% in FY18.

SKF INDIA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 26,314 27,504 4.5%
Other income Rs m 873 714 -18.3%
Total Revenues Rs m 27,187 28,218 3.8%
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 % 12.8 15.8
Effective tax rate % 35.1 35.0
Net profit margin % 9.0 10.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 5% and stood at Rs 3 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 23,040 24,438 6.1
 
Current assets Rs m 18,197 18,931 4.0
Fixed Assets Rs m 3,157 3,300 4.6
Total Assets Rs m 23,040 24,438 6.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SKF INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 57.7, 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 1,724.9, stands at 29.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 3.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 26.6 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 499.0 536.1
TTM Earnings per share Rs 46.3 57.7
Diluted earnings per share Rs 46.3 56.1
Price to Cash Flow x 31.2 26.6
TTM P/E ratio x 29.1 29.1
Price / Book Value ratio x 4.1 4.9
Market Cap Rs m 90,954 90,954
Dividends per share (Unadj.) Rs 10.0 12.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SKF INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved 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 deteriorated 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 12.3% 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 71 65
Interest coverage x 0.0 92.6
Debt to equity ratio x 0.0 0.0
Return on assets % 10.6 12.3
Return on equity % 13.5 16.1
Return on capital employed % 20.7 25.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 1,538.0 to Rs 1,724.9, registering a gain of Rs 186.9 or around 12.2%.

Overall, the S&P BSE SENSEX is up 20.4% over the year.

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

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