SANWARIA CONSUMER 2017-18 Annual Report Analysis

Sat, 31 Mar

SANWARIA CONSUMER 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.

SANWARIA CONSUMER Income Statement Analysis

• Operating income during the year rose 43.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 69.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.7% in FY18 as against 3.1% in FY17.
• Depreciation charges increased by 10.4% and finance costs increased by 11.2% YoY, respectively.
• Other income declined by 11.4% YoY.
• Net profit for the year grew by 93.9% YoY.
• Net profit margins during the year grew from 1.2% in FY17 to 1.7% in FY18.

SANWARIA CONSUMER Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	35,124	50,515	43.8%
Other income	Rs m	134	118	-11.4%
Total Revenues	Rs m	35,258	50,634	43.6%
Gross profit	Rs m	1,106	1,871	69.2%
Depreciation	Rs m	73	80	10.4%
Interest	Rs m	669	744	11.2%
Profit before tax	Rs m	498	1,165	134.0%
Tax	Rs m	61	318	421.7%
Profit after tax	Rs m	437	847	93.9%
Gross profit margin	%	3.1	3.7
Effective tax rate	%	12.3	27.3
Net profit margin	%	1.2	1.7

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SANWARIA CONSUMER 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 2.9%.
• Long-term debt stood at Rs 187 million as compared to Rs 94 million during FY17, a growth of 99.3%.
• Current assets rose 17% and stood at Rs 16 billion, while fixed assets fell 5% and stood at Rs 2 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 17 billion as against Rs 15 billion during FY17, thereby witnessing a growth of 15%.

SANWARIA CONSUMER Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	4,143	4,941	19.3
Current Liabilities	Rs m	10,720	11,035	2.9
Long-term Debt	Rs m	94	187	99.3
Total Liabilities	Rs m	15,122	17,321	14.5
Current assets	Rs m	13,518	15,794	16.8
Fixed Assets	Rs m	1,603	1,527	-4.7
Total Assets	Rs m	15,122	17,321	14.5

SANWARIA CONSUMER Cash Flow Statement Analysis

• SANWARIA CONSUMER's cash flow from operating activities (CFO) during FY18 stood at Rs -158 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -141 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 273 million, an improvement of 135% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -25 million from the Rs 100 million net cash flows seen during FY17.

SANWARIA CONSUMER 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	782	-158	-
Cash Flow from Investing Activities	Rs m	91	-141	-
Cash Flow from Financing Activities	Rs m	-774	273	-
Net Cash Flow	Rs m	100	-25	-

Current Valuations for SANWARIA CONSUMER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.2, an decline from the EPS of Rs 1.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 20.0, stands at 17.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 16.4 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	95.4	68.6
TTM Earnings per share	Rs	1.2	1.2
Diluted earnings per share	Rs	0.6	1.2
Price to Cash Flow	x	11.6	16.4
TTM P/E ratio	x	13.4	17.3
Price / Book Value ratio	x	0.6	3.1
Market Cap	Rs m	2,689	15,182
Dividends per share (Unadj.)	Rs	0.1	0.0

Ratio Analysis for SANWARIA CONSUMER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 1.3x 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 improved and stood at 2.6x during FY18, from 1.7x 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 improved and stood at 17.1% during FY18, from 10.5% 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 improved and stood at 37.2% during FY18, from 27.5% 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 9.2% during FY18, from 7.3% 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	1.3	1.4
Debtors’ Days	Days	75,564,281	66,188,504
Interest coverage	x	1.7	2.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.3	9.2
Return on equity	%	10.5	17.1
Return on capital employed	%	27.5	37.2

To see how SANWARIA CONSUMER has performed over the last 5 years, please visit here.

SANWARIA CONSUMER Share Price Performance

Over the last one year, SANWARIA CONSUMER share price has moved up from Rs 8.0 to Rs 20.0, registering a gain of Rs 11.9 or around 148.4%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for SANWARIA CONSUMER and quarterly results for SANWARIA CONSUMER)