SALZER ELEC 2017-18 Annual Report Analysis

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SALZER ELEC 2017-18 Annual Report Analysis
Thu, 20 Dec

SALZER ELEC 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.

SALZER ELEC Income Statement Analysis

  • Operating income during the year rose 15.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 20.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.0% in FY18 as against 11.5% in FY17.
  • Depreciation charges increased by 18.4% and finance costs increased by 2.2% YoY, respectively.
  • Other income declined by 43.0% YoY.
  • Net profit for the year grew by 15.5% YoY.
  • Net profit margins during the year grew from 4.4% in FY17 to 4.5% in FY18.

SALZER ELEC Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 3,850 4,428 15.0%
Other income Rs m 54 31 -43.0%
Total Revenues Rs m 3,904 4,459 14.2%
Gross profit Rs m 442 533 20.7%
Depreciation Rs m 89 105 18.4%
Interest Rs m 146 149 2.2%
Profit before tax Rs m 261 309 18.5%
Tax Rs m 88 109 24.7%
Profit after tax Rs m 173 200 15.5%
Gross profit margin % 11.5 12.0
Effective tax rate % 33.6 35.3
Net profit margin % 4.4 4.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SALZER ELEC Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 2 billion as compared to Rs 2 billion in FY17, thereby witnessing an increase of 23.7%.
  • Long-term debt down at Rs 77 million as compared to Rs 118 million during FY17, a fall of 35.3%.
  • Current assets rose 21% and stood at Rs 3 billion, while fixed assets rose 15% and stood at Rs 2 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 5 billion as against Rs 5 billion during FY17, thereby witnessing a growth of 18%.

SALZER ELEC Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 2,326 2,701 16.1
 
Current Liabilities Rs m 1,912 2,366 23.7
Long-term Debt Rs m 118 77 -35.3
Total Liabilities Rs m 4,539 5,372 18.4
 
Current assets Rs m 2,712 3,276 20.8
Fixed Assets Rs m 1,457 1,682 15.4
Total Assets Rs m 4,539 5,372 18.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SALZER ELEC Cash Flow Statement Analysis

  • SALZER ELEC's cash flow from operating activities (CFO) during FY18 stood at Rs 42 million, an improvement of 361.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -326 million, an improvement of 142.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 261 million, an improvement of 110% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -104 million from the Rs -69 million net cash flows seen during FY17.

SALZER ELEC 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 9 42 361.1%
Cash Flow from Investing Activities Rs m -135 -326 -
Cash Flow from Financing Activities Rs m 124 261 109.7%
Net Cash Flow Rs m -69 -104 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SALZER ELEC

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.4, an improvement from the EPS of Rs 12.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 140.1, stands at 9.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.2 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 268.3 295.4
TTM Earnings per share Rs 12.1 13.4
Diluted earnings per share Rs 12.8 14.8
Price to Cash Flow x 7.7 6.2
TTM P/E ratio x 9.9 9.3
Price / Book Value ratio x 1.3 1.2
Market Cap Rs m 2,010 1,893
Dividends per share (Unadj.) Rs 1.6 1.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SALZER ELEC

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 1.4x 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 3.1x during FY18, from 2.8x 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 7.4% during FY18, from 7.5% 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 declined and down at 16.5% during FY18, from 16.7% 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 declined and down at 6.5% during FY18, from 7.0% 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 1.4 1.4
Debtors’ Days Days 111 97
Interest coverage x 2.8 3.1
Debt to equity ratio x 0.1 0.0
Return on assets % 7.0 6.5
Return on equity % 7.5 7.4
Return on capital employed % 16.7 16.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how SALZER ELEC has performed over the last 5 years, please visit here.

SALZER ELEC Share Price Performance

Over the last one year, SALZER ELEC share price has moved up from Rs 227.3 to Rs 140.1, registering a loss of Rs 87.2 or around 38.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,763.4 (down 0.2%). Over the last one year it has moved up from 18,684.3 to 18,763.4, a gain of 79 points (up 0.4%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

(To know more, check out historical annual results for SALZER ELEC and quarterly results for SALZER ELEC)

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