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STERLITE TECH. 2017-18 Annual Report Analysis

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STERLITE TECH. 2017-18 Annual Report Analysis
Fri, 21 Dec

STERLITE TECH. 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.

STERLITE TECH. Income Statement Analysis

  • Operating income during the year rose 29.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 43.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.0% in FY18 as against 21.7% in FY17.
  • Depreciation charges increased by 14.4% and finance costs decreased by 15.5% YoY, respectively.
  • Other income grew by 121.6% YoY.
  • Net profit for the year grew by 69.3% YoY.
  • Net profit margins during the year grew from 8.8% in FY17 to 11.5% in FY18.

STERLITE TECH. Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 24,489 31,771 29.7%
Other income Rs m 116 256 121.6%
Total Revenues Rs m 24,604 32,027 30.2%
Gross profit Rs m 5,308 7,630 43.7%
Depreciation Rs m 1,592 1,822 14.4%
Interest Rs m 1,229 1,038 -15.5%
Profit before tax Rs m 2,602 5,026 93.2%
Tax Rs m 397 1,332 235.7%
Profit after tax Rs m 2,177 3,685 69.3%
Gross profit margin % 21.7 24.0
Effective tax rate % 15.2 26.5
Net profit margin % 8.8 11.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



STERLITE TECH. Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 17 billion as compared to Rs 14 billion in FY17, thereby witnessing an increase of 20.9%.
  • Long-term debt stood at Rs 6 billion as compared to Rs 4 billion during FY17, a growth of 47.6%.
  • Current assets rose 33% and stood at Rs 20 billion, while fixed assets rose 12% and stood at Rs 16 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 37 billion as against Rs 29 billion during FY17, thereby witnessing a growth of 28%.

STERLITE TECH. Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 8,801 11,753 33.5
 
Current Liabilities Rs m 14,091 17,040 20.9
Long-term Debt Rs m 4,271 6,305 47.6
Total Liabilities Rs m 29,110 37,117 27.5
 
Current assets Rs m 14,728 19,562 32.8
Fixed Assets Rs m 14,227 15,911 11.8
Total Assets Rs m 29,110 37,117 27.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



STERLITE TECH. Cash Flow Statement Analysis

  • STERLITE TECH.'s cash flow from operating activities (CFO) during FY18 stood at Rs 7 billion, an improvement of 49.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -6 billion, an improvement of 151.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion, an improvement of 19% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -91 million from the Rs 693 million net cash flows seen during FY17.

STERLITE TECH. 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 4,885 7,316 49.8%
Cash Flow from Investing Activities Rs m -2,323 -5,848 -
Cash Flow from Financing Activities Rs m -1,869 -1,515 -
Net Cash Flow Rs m 693 -91 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for STERLITE TECH.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.2, an improvement from the EPS of Rs 5.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 295.3, stands at 23.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 9.2 times, while the price to sales ratio stands at 3.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.1 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 61.5 79.2
TTM Earnings per share Rs 5.5 9.2
Diluted earnings per share Rs 5.5 9.4
Price to Cash Flow x 31.2 21.1
TTM P/E ratio x 23.9 23.6
Price / Book Value ratio x 4.8 9.2
Market Cap Rs m 117,618 116,339
Dividends per share (Unadj.) Rs 1.3 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for STERLITE TECH.

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 1.0x 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 5.8x during FY18, from 3.1x 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 31.4% during FY18, from 24.7% 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 33.5% during FY18, from 29.1% 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 12.7% during FY18, from 11.7% 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 1.0 1.1
Debtors’ Days Days 102 100
Interest coverage x 3.1 5.8
Debt to equity ratio x 0.5 0.5
Return on assets % 11.7 12.7
Return on equity % 24.7 31.4
Return on capital employed % 29.1 33.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how STERLITE TECH. has performed over the last 5 years, please visit here.

STERLITE TECH. Share Price Performance

Over the last one year, STERLITE TECH. share price has moved up from Rs 292.1 to Rs 295.3, registering a gain of Rs 3.2 or around 1.1%.

Overall, the S&P BSE SENSEX is up 7.8% over the year.

(To know more, check out historical annual results for STERLITE TECH. and quarterly results for STERLITE TECH.)

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Related Views on News

STERLITE TECH. Announces Quarterly Results (3QFY19); Net Profit Up 50.9% (Quarterly Result Update)

Jan 25, 2019 | Updated on Jan 25, 2019

For the quarter ended December 2018, STERLITE TECH. has posted a net profit of Rs 1 bn (up 50.9% YoY). Sales on the other hand came in at Rs 13 bn (up 59.8% YoY). Read on for a complete analysis of STERLITE TECH.'s quarterly results.

STERLITE TECH. Announces Quarterly Results (2QFY19); Net Profit Up 79.8% (Quarterly Result Update)

Nov 9, 2018 | Updated on Nov 9, 2018

For the quarter ended September 2018, STERLITE TECH. has posted a net profit of Rs 1 bn (up 79.8% YoY). Sales on the other hand came in at Rs 11 bn (up 39.1% YoY). Read on for a complete analysis of STERLITE TECH.'s quarterly results.

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