SML ISUZU 2017-18 Annual Report Analysis

Sat, 31 Mar

SML ISUZU 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.

SML ISUZU Income Statement Analysis

• Operating income during the year fell 8.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 58.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.1% in FY18 as against 9.2% in FY17.
• Depreciation charges increased by 19.2% and finance costs increased by 70.3% YoY, respectively.
• Other income declined by 24.9% YoY.
• Net profit for the year declined by 86.5% YoY.
• Net profit margins during the year declined from 5.3% in FY17 to 0.8% in FY18.

SML ISUZU Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	11,962	10,960	-8.4%
Other income	Rs m	42	31	-24.9%
Total Revenues	Rs m	12,003	10,991	-8.4%
Gross profit	Rs m	1,100	453	-58.8%
Depreciation	Rs m	238	284	19.2%
Interest	Rs m	62	105	70.3%
Profit before tax	Rs m	841	95	-88.8%
Tax	Rs m	211	10	-95.5%
Profit after tax	Rs m	630	85	-86.5%
Gross profit margin	%	9.2	4.1
Effective tax rate	%	25.1	10.2
Net profit margin	%	5.3	0.8

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

SML ISUZU Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 4 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 45.3%.
• Long-term debt stood at Rs 1 billion as compared to Rs 350 million during FY17, a growth of 238.5%.
• Current assets rose 24% and stood at Rs 6 billion, while fixed assets rose 28% and stood at Rs 4 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 10 billion as against Rs 8 billion during FY17, thereby witnessing a growth of 26%.

SML ISUZU Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	4,038	3,981	-1.4
Current Liabilities	Rs m	2,807	4,077	45.3
Long-term Debt	Rs m	350	1,185	238.5
Total Liabilities	Rs m	7,853	9,867	25.6
Current assets	Rs m	4,501	5,563	23.6
Fixed Assets	Rs m	3,353	4,304	28.4
Total Assets	Rs m	7,853	9,867	25.6

SML ISUZU Cash Flow Statement Analysis

• SML ISUZU's cash flow from operating activities (CFO) during FY18 stood at Rs -328 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -983 million, an improvement of 10.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 1 billion, an improvement of 532% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 146 million from the Rs -23 million net cash flows seen during FY17.

SML ISUZU 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	1,206	-328	-
Cash Flow from Investing Activities	Rs m	-892	-983	-
Cash Flow from Financing Activities	Rs m	-337	1,456	-
Net Cash Flow	Rs m	-23	146	-

Current Valuations for SML ISUZU

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.9, an decline from the EPS of Rs 43.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 766.7, stands at 130.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 41.4 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	826.6	757.4
TTM Earnings per share	Rs	43.5	5.9
Diluted earnings per share	Rs	43.5	5.9
Price to Cash Flow	x	21.5	41.4
TTM P/E ratio	x	29.7	130.4
Price / Book Value ratio	x	3.9	3.8
Market Cap	Rs m	15,946	15,290
Dividends per share (Unadj.)	Rs	8.0	1.5

Ratio Analysis for SML ISUZU

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY18, from 1.6x 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 1.9x during FY18, from 14.6x 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 2.1% during FY18, from 15.6% 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 3.9% during FY18, from 20.6% 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 1.9% during FY18, from 8.8% 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	1.6	1.4
Debtors’ Days	Days	350	391
Interest coverage	x	14.6	1.9
Debt to equity ratio	x	0.1	0.3
Return on assets	%	8.8	1.9
Return on equity	%	15.6	2.1
Return on capital employed	%	20.6	3.9

To see how SML ISUZU has performed over the last 5 years, please visit here.

SML ISUZU Share Price Performance

Over the last one year, SML ISUZU share price has moved down from Rs 1,287.2 to Rs 766.7, registering a loss of Rs 520.5 or around 40.4%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 24,057.3 (down 0.1%). Over the last one year it has moved up from 22,012.7 to 24,057.3, a gain of 2,045 points (up 9.3%).

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

(To know more, check out historical annual results for SML ISUZU and quarterly results for SML ISUZU)

Read: Latest Annual Report Analysis of SML ISUZU