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STC INDIA 2017-18 Annual Report Analysis

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STC INDIA 2017-18 Annual Report Analysis
Fri, 18 Jan

STC 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.

STC INDIA Income Statement Analysis

  • Operating income during the year rose 39.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 2.5% YoY during the fiscal. Operating profit margins witnessed a growth and down at 1.0% in FY18 as against 1.3% in FY17.
  • Depreciation charges increased by 0.0% and finance costs increased by 15.9% YoY, respectively.
  • Other income grew by 11.1% YoY.
  • Net profit for the year declined by 15.0% YoY.
  • Net profit margins during the year grew from 9.0% in FY17 to 5.5% in FY18.

STC INDIA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 78,145 108,657 39.0%
Other income Rs m 2,733 3,037 11.1%
Total Revenues Rs m 80,878 111,694 38.1%
Gross profit Rs m -1,053 -1,080 2.5%
Depreciation Rs m 167 167 0.0%
Interest Rs m 7,189 8,334 15.9%
Profit before tax Rs m -5,676 -6,544 15.3%
Tax Rs m 169 -53 -131.3%
Profit after tax Rs m -7,285 -6,194 -15.0%
Gross profit margin % -1.3 -1.0
Effective tax rate % -3.0 0.8
Net profit margin % -9.0 -5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



STC INDIA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 69 billion as compared to Rs 60 billion in FY17, thereby witnessing an increase of 15.3%.
  • Current assets rose 7% and stood at Rs 24 billion, while fixed assets fell 2% and stood at Rs 9 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 44 billion as against Rs 43 billion during FY17, thereby witnessing a growth of 4%.

STC INDIA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m -30,157 -36,319 20.4
 
Current Liabilities Rs m 60,049 69,245 15.3
Long-term Debt Rs m 1,463 0 -100.0
Total Liabilities Rs m 42,896 44,428 3.6
 
Current assets Rs m 22,509 24,127 7.2
Fixed Assets Rs m 9,350 9,197 -1.6
Total Assets Rs m 42,896 44,428 3.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



STC INDIA Cash Flow Statement Analysis

  • STC INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 163.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 320 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 919 million from the Rs -17 million net cash flows seen during FY17.

STC 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 713 1,878 163.4%
Cash Flow from Investing Activities Rs m 330 320 -3.0%
Cash Flow from Financing Activities Rs m -1,060 -1,279 -
Net Cash Flow Rs m -17 919 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for STC INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -103.2, an improvement from the EPS of Rs -121.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 129.5, stands at 147.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -0.4 times, while the price to sales ratio stands at 0.1 times.
  • The company's price to cash flow (P/CF) ratio stood at -1.3 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 1,302.4 1,811.0
TTM Earnings per share Rs -121.4 -103.2
Diluted earnings per share Rs -121.4 -103.2
Price to Cash Flow x -1.1 -1.3
TTM P/E ratio x 147.7 147.7
Price / Book Value ratio x -0.3 -0.4
Market Cap Rs m 7,770 7,770
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for STC INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.3x during FY18, from 0.4x 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 0.2x during FY18, from 0.2x 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 17.1% during FY18, from 24.2% 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 -5.7% during FY18, from -0.3% 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 4.8% during FY18, from -0.2% 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 0.4 0.3
Debtors’ Days Days 99 75
Interest coverage x 0.2 0.2
Debt to equity ratio x 0.0 0.0
Return on assets % -0.2 4.8
Return on equity % 24.2 17.1
Return on capital employed % -0.3 -5.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

STC INDIA Share Price Performance

Over the last one year, STC INDIA share price has moved up from Rs 165.8 to Rs 129.5, registering a loss of Rs 36.3 or around 21.9%.

Overall, the S&P BSE SENSEX is up 3.5% over the year.

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

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