SWAN ENERGY 2017-18 Annual Report Analysis

Sat, 31 Mar

SWAN ENERGY 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.

SWAN ENERGY Income Statement Analysis

• Operating income during the year fell 1.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 28.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.9% in FY18 as against 9.5% in FY17.
• Depreciation charges increased by 19.1% and finance costs increased by 82.8% YoY, respectively.
• Other income grew by 857.1% YoY.
• Net profit for the year grew by 8880.6% YoY.
• Net profit margins during the year grew from 0.2% in FY17 to 15.8% in FY18.

SWAN ENERGY Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	3,506	3,467	-1.1%
Other income	Rs m	127	1,214	857.1%
Total Revenues	Rs m	3,633	4,681	28.9%
Gross profit	Rs m	335	239	-28.8%
Depreciation	Rs m	118	141	19.1%
Interest	Rs m	316	578	82.8%
Profit before tax	Rs m	27	734	2,595.5%
Tax	Rs m	21	187	784.1%
Profit after tax	Rs m	6	547	8,880.6%
Gross profit margin	%	9.5	6.9
Effective tax rate	%	77.6	25.5
Net profit margin	%	0.2	15.8

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SWAN ENERGY Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 13 billion as compared to Rs 10 billion in FY17, thereby witnessing an increase of 29.0%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY17, a fall of 3.9%.
• Current assets rose 60% and stood at Rs 14 billion, while fixed assets rose 28% and stood at Rs 13 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 26 billion as against Rs 18 billion during FY17, thereby witnessing a growth of 43%.

SWAN ENERGY Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	4,313	9,319	116.1
Current Liabilities	Rs m	10,327	13,324	29.0
Long-term Debt	Rs m	3,571	3,432	-3.9
Total Liabilities	Rs m	18,479	26,364	42.7
Current assets	Rs m	8,514	13,601	59.8
Fixed Assets	Rs m	9,965	12,763	28.1
Total Assets	Rs m	18,479	26,364	42.7

SWAN ENERGY Cash Flow Statement Analysis

• SWAN ENERGY's cash flow from operating activities (CFO) during FY18 stood at Rs 623 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -5 billion, an improvement of 1,768.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 5 billion, an improvement of 1,760% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 99 million from the Rs 118 million net cash flows seen during FY17.

SWAN ENERGY 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	693	623	-10.1%
Cash Flow from Investing Activities	Rs m	-285	-5,332	-
Cash Flow from Financing Activities	Rs m	-290	4,807	-
Net Cash Flow	Rs m	118	99	-16.7%

Current Valuations for SWAN ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.2, an improvement from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 178.6, stands at 64.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.1 times, while the price to sales ratio stands at 12.6 times.
• The company's price to cash flow (P/CF) ratio stood at 61.6 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	15.9	14.2
TTM Earnings per share	Rs	0.0	2.2
Diluted earnings per share	Rs	0.0	2.1
Price to Cash Flow	x	299.4	61.6
TTM P/E ratio	x	2,219.5	64.8
Price / Book Value ratio	x	6.9	4.5
Market Cap	Rs m	29,959	42,366
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for SWAN ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY18, from 0.8x 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 2.3x during FY18, from 1.1x 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 5.9% during FY18, from 0.1% 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 10.3% during FY18, from 4.4% 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 4.3% during FY18, from 1.7% 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	0.8	1.0
Debtors’ Days	Days	965	602
Interest coverage	x	1.1	2.3
Debt to equity ratio	x	0.8	0.4
Return on assets	%	1.7	4.3
Return on equity	%	0.1	5.9
Return on capital employed	%	4.4	10.3

To see how SWAN ENERGY has performed over the last 5 years, please visit here.

SWAN ENERGY Share Price Performance

Over the last one year, SWAN ENERGY share price has moved up from Rs 141.2 to Rs 178.6, registering a gain of Rs 37.4 or around 26.5%.

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

(To know more, check out historical annual results for SWAN ENERGY and quarterly results for SWAN ENERGY)

Read: Latest Annual Report Analysis of SWAN ENERGY