S.P. APPARELS LTD 2017-18 Annual Report Analysis

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S.P. APPARELS LTD 2017-18 Annual Report Analysis
Wed, 19 Dec

S.P. APPARELS LTD 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.

S.P. APPARELS LTD Income Statement Analysis

  • Operating income during the year rose 4.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 2.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.0% in FY18 as against 16.4% in FY17.
  • Depreciation charges increased by 15.9% and finance costs increased by 55.4% YoY, respectively.
  • Other income declined by 23.1% YoY.
  • Net profit for the year declined by 10.8% YoY.
  • Net profit margins during the year declined from 8.2% in FY17 to 7.0% in FY18.

S.P. APPARELS LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 6,330 6,624 4.6%
Other income Rs m 213 164 -23.1%
Total Revenues Rs m 6,543 6,788 3.7%
Gross profit Rs m 1,036 1,058 2.2%
Depreciation Rs m 193 224 15.9%
Interest Rs m 185 287 55.4%
Profit before tax Rs m 871 711 -18.4%
Tax Rs m 334 233 -30.5%
Profit after tax Rs m 536 478 -10.8%
Gross profit margin % 16.4 16.0
Effective tax rate % 38.4 32.7
Net profit margin % 8.2 7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



S.P. APPARELS LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 3 billion as compared to Rs 2 billion in FY17, thereby witnessing an increase of 36.9%.
  • Long-term debt down at Rs 337 million as compared to Rs 398 million during FY17, a fall of 15.3%.
  • Current assets rose 33% and stood at Rs 5 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 8 billion as against Rs 7 billion during FY17, thereby witnessing a growth of 20%.

S.P. APPARELS LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 3,575 3,972 11.1
 
Current Liabilities Rs m 2,452 3,356 36.9
Long-term Debt Rs m 398 337 -15.3
Total Liabilities Rs m 6,768 8,096 19.6
 
Current assets Rs m 3,623 4,832 33.4
Fixed Assets Rs m 2,994 3,133 4.6
Total Assets Rs m 6,768 8,096 19.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



S.P. APPARELS LTD Cash Flow Statement Analysis

  • S.P. APPARELS LTD's cash flow from operating activities (CFO) during FY18 stood at Rs -12 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -153 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 193 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 28 million from the Rs 17 million net cash flows seen during FY17.

S.P. APPARELS LTD 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 489 -12 -
Cash Flow from Investing Activities Rs m -1,205 -153 -
Cash Flow from Financing Activities Rs m 733 193 -73.7%
Net Cash Flow Rs m 17 28 67.8%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for S.P. APPARELS LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.0, an decline from the EPS of Rs 21.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 242.1, stands at 11.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.9 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 251.5 263.2
TTM Earnings per share Rs 21.3 19.0
Diluted earnings per share Rs 20.9 18.6
Price to Cash Flow x 8.4 8.9
TTM P/E ratio x 11.3 11.6
Price / Book Value ratio x 2.7 2.5
Market Cap Rs m 6,092 6,219
Dividends per share (Unadj.) Rs 1.5 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for S.P. APPARELS LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 1.5x 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 3.5x during FY18, from 5.7x 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 12.0% during FY18, from 15.0% 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 23.2% during FY18, from 26.6% 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 9.5% during FY18, from 10.7% 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 1.5 1.4
Debtors’ Days Days 77 91
Interest coverage x 5.7 3.5
Debt to equity ratio x 0.1 0.1
Return on assets % 10.7 9.5
Return on equity % 15.0 12.0
Return on capital employed % 26.6 23.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how S.P. APPARELS LTD has performed over the last 5 years, please visit here.

S.P. APPARELS LTD Share Price Performance

Over the last one year, S.P. APPARELS LTD share price has moved up from Rs 392.3 to Rs 242.1, registering a loss of Rs 150.2 or around 38.3%.

Overall, the S&P BSE SENSEX is up 8.6% over the year.

(To know more, check out historical annual results for S.P. APPARELS LTD and quarterly results for S.P. APPARELS LTD)

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