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SUNDRAM FASTENERS 2017-18 Annual Report Analysis

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SUNDRAM FASTENERS 2017-18 Annual Report Analysis
Tue, 1 Jan

SUNDRAM FASTENERS 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.

SUNDRAM FASTENERS Income Statement Analysis

  • Operating income during the year rose 16.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 15.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.8% in FY18 as against 17.8% in FY17.
  • Depreciation charges increased by 7.5% and finance costs decreased by 4.3% YoY, respectively.
  • Other income grew by 50.6% YoY.
  • Net profit for the year grew by 14.8% YoY.
  • Net profit margins during the year declined from 10.2% in FY17 to 10.1% in FY18.

SUNDRAM FASTENERS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 33,029 38,312 16.0%
Other income Rs m 154 232 50.6%
Total Revenues Rs m 33,183 38,544 16.2%
Gross profit Rs m 5,891 6,805 15.5%
Depreciation Rs m 1,045 1,123 7.5%
Interest Rs m 391 375 -4.3%
Profit before tax Rs m 4,609 5,539 20.2%
Tax Rs m 1,203 1,658 37.7%
Profit after tax Rs m 3,382 3,882 14.8%
Gross profit margin % 17.8 17.8
Effective tax rate % 26.1 29.9
Net profit margin % 10.2 10.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SUNDRAM FASTENERS Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 11 billion as compared to Rs 11 billion in FY17, thereby witnessing an increase of 3.8%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY17, a growth of 45.4%.
  • Current assets rose 19% and stood at Rs 15 billion, while fixed assets rose 15% and stood at Rs 13 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 30 billion as against Rs 25 billion during FY17, thereby witnessing a growth of 18%.

SUNDRAM FASTENERS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 12,361 15,311 23.9
 
Current Liabilities Rs m 10,514 10,913 3.8
Long-term Debt Rs m 1,500 2,181 45.4
Total Liabilities Rs m 25,277 29,874 18.2
 
Current assets Rs m 12,206 14,537 19.1
Fixed Assets Rs m 10,992 12,671 15.3
Total Assets Rs m 25,277 29,874 18.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SUNDRAM FASTENERS Cash Flow Statement Analysis

  • SUNDRAM FASTENERS's cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion, an improvement of 87.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -3 billion, an improvement of 25.2% 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 -65 million from the Rs 121 million net cash flows seen during FY17.

SUNDRAM FASTENERS 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 2,436 4,564 87.4%
Cash Flow from Investing Activities Rs m -2,358 -2,952 -
Cash Flow from Financing Activities Rs m 56 -1,671 -
Net Cash Flow Rs m 121 -65 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SUNDRAM FASTENERS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.5, an improvement from the EPS of Rs 16.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 535.5, stands at 27.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 2.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 22.5 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 157.2 182.3
TTM Earnings per share Rs 16.1 18.5
Diluted earnings per share Rs 16.1 18.5
Price to Cash Flow x 25.4 22.5
TTM P/E ratio x 27.9 27.9
Price / Book Value ratio x 4.8 6.9
Market Cap Rs m 112,525 112,525
Dividends per share (Unadj.) Rs 2.8 4.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SUNDRAM FASTENERS

  • 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 15.8x during FY18, from 12.8x 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 25.4% during FY18, from 27.4% 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 33.8% during FY18, from 35.9% 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 14.2% during FY18, from 14.9% 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 1.2 1.3
Debtors’ Days Days 72 76
Interest coverage x 12.8 15.8
Debt to equity ratio x 0.1 0.1
Return on assets % 14.9 14.2
Return on equity % 27.4 25.4
Return on capital employed % 35.9 33.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how SUNDRAM FASTENERS has performed over the last 5 years, please visit here.

SUNDRAM FASTENERS Share Price Performance

Over the last one year, SUNDRAM FASTENERS share price has moved up from Rs 583.8 to Rs 535.5, registering a loss of Rs 48.3 or around 8.3%.

Overall, the S&P BSE SENSEX is up 6.5% over the year.

(To know more, check out historical annual results for SUNDRAM FASTENERS and quarterly results for SUNDRAM FASTENERS)

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