X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
SWARAJ ENGINES 2017-18 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

SWARAJ ENGINES 2017-18 Annual Report Analysis
Fri, 24 Aug

SWARAJ ENGINES 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.

SWARAJ ENGINES Income Statement Analysis

  • Operating income during the year rose 15.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 16.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.8% in FY18 as against 15.7% in FY17.
  • Depreciation charges and finance costs increased by 3.3% YoY and 4950.0% YoY, respectively.
  • Other income grew by 10.2% YoY.
  • Net profit for the year grew by 16.4% YoY.
  • Net profit margins during the year grew from 10.1% in FY17 to 10.1% in FY18.

SWARAJ ENGINES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 6,662 7,712 15.8%
Other income Rs m 172 190 10.2%
Total Revenues Rs m 6,834 7,901 15.6%
Gross profit Rs m 1,046 1,216 16.3%
Depreciation Rs m 163 168 3.3%
Interest Rs m 0 10 4,950.0%
Profit before tax Rs m 1,055 1,227 16.4%
Tax Rs m 366 426 16.4%
Profit after tax Rs m 688 801 16.4%
Gross profit margin % 15.7 15.8
Effective tax rate % 34.7 34.7
Net profit margin % 10.1 10.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SWARAJ ENGINES Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 1 billion as compared to Rs 796 million in FY17, thereby witnessing an increase of 37.7%.
  • Current assets fell 14% and stood at Rs 2 billion, while fixed assets rose 13% and stood at Rs 1 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 3 billion as against Rs 4 billion during FY17, thereby witnessing a fall of 7%.

SWARAJ ENGINES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 2,834 2,285 -19.4
 
Current Liabilities Rs m 796 1,097 37.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 3,722 3,475 -6.6
 
Current assets Rs m 2,762 2,387 -13.6
Fixed Assets Rs m 959 1,088 13.4
Total Assets Rs m 3,722 3,475 -6.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SWARAJ ENGINES Cash Flow Statement Analysis

  • SWARAJ ENGINES's cash flow from operating activities (CFO) during FY18 stood at Rs 893 million, an improvement of 8.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 475 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 11 million from the Rs 13 million net cash flows seen during FY17.

SWARAJ ENGINES 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 823 893 8.5%
Cash Flow from Investing Activities Rs m -319 475 -
Cash Flow from Financing Activities Rs m -491 -1,357 -
Net Cash Flow Rs m 13 11 -16.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SWARAJ ENGINES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 66.0, an improvement from the EPS of Rs 55.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,800.0, stands at 26.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 10.5 times, while the price to sales ratio stands at 3.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 22.5 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 536.4 635.7
TTM Earnings per share Rs 55.4 66.0
Diluted earnings per share Rs 56.7 66.0
Price to Cash Flow x 26.3 22.5
TTM P/E ratio x 27.4 26.7
Price / Book Value ratio x 5.1 10.5
Market Cap Rs m 22,356 21,834
Dividends per share (Unadj.) Rs 43.0 50.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SWARAJ ENGINES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.2x during FY18, from 3.5x 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 122.5x during FY18, from 5,274.0x 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 35.1% during FY18, from 24.3% 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 54.1% during FY18, from 37.2% 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 23.3% during FY18, from 18.5% 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 3.5 2.2
Debtors’ Days Days 7 7
Interest coverage x 5,274.0 122.5
Debt to equity ratio x 0.0 0.0
Return on assets % 18.5 23.3
Return on equity % 24.3 35.1
Return on capital employed % 37.2 54.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how SWARAJ ENGINES has performed over the last 5 years, please visit here.

SWARAJ ENGINES Share Price Performance

Over the last one year, SWARAJ ENGINES share price has moved up from Rs 1,969.6 to Rs 1,800.0, registering a loss of Rs 169.6 or around 8.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,714.0 (down 0.2%). Over the last one year it has moved up from 17,161.4 to 18,714.0, a gain of 1,553 points (up 9.0%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for SWARAJ ENGINES and quarterly results for SWARAJ ENGINES)

Equitymaster requests your view! Post a comment on "SWARAJ ENGINES 2017-18 Annual Report Analysis". Click here!

  

Related Views on News

SWARAJ ENGINES Announces Quarterly Results (2QFY19); Net Profit Up 8.0% (Quarterly Result Update)

Nov 6, 2018 | Updated on Nov 6, 2018

For the quarter ended September 2018, SWARAJ ENGINES has posted a net profit of Rs 254 m (up 8.0% YoY). Sales on the other hand came in at Rs 2 bn (up 18.4% YoY). Read on for a complete analysis of SWARAJ ENGINES's quarterly results.

SWARAJ ENGINES Announces Quarterly Results (1QFY19); Net Profit Up 7.3% (Quarterly Result Update)

Aug 1, 2018 | Updated on Aug 1, 2018

For the quarter ended June 2018, SWARAJ ENGINES has posted a net profit of Rs 231 m (up 7.3% YoY). Sales on the other hand came in at Rs 2 bn (up 7.5% YoY). Read on for a complete analysis of SWARAJ ENGINES's quarterly results.

Garden Reach Shipbuilders and Engineers Ltd: Is This PSU Shipbuilder Worth Betting On? (IPO)

Sep 24, 2018

Should you apply for the IPO of Garden Reach Shipbuilders and Engineers Ltd?

H.G Infra Engineering Ltd. (IPO)

Feb 24, 2018

Should you subscribe to the IPO of H.G Infra Engineering Ltd.?

Amber Enterprises India Ltd. (IPO)

Jan 16, 2018

Should you subscribe to the IPO of Amber Enterprises India Ltd?

More Views on News

Most Popular

My Top 7 Stocks to Buy Now(The 5 Minute Wrapup)

Nov 30, 2018

Of all the stocks that you could buy in this market, I've picked the seven best safe stocks that offer the ideal combination of safety and profit.

4 Rebound Stocks to Profit from the Current Small Cap Crash(Profit Hunter)

Dec 3, 2018

Indian small cap space is offering a discount season. Make sure you do not get too late to scoop up the bargains.

Reliance CPSE ETF (FFO3): Should You Invest?(Outside View)

Nov 29, 2018

Personalfn's analysis note on Reliance Mutual Fund Central Public Sector Enterprises Exchange Traded Fund (CPSE ETF). Should you subscribe?

Safety Beats Growth in 2018(Chart Of The Day)

Nov 30, 2018

With the markets turning up, these are my top 7 stock picks.

Looking For Higher Interest Rates on Bank FDs? Read This!(Outside View)

Dec 5, 2018

Credit disbursement to the productive sectors of the economy such as infrastructure, engineering, food processing, textiles, and chemicals, among others is rising.

More

Small Investments
BIG Returns

Zero To Millions Guide 2019
Get our special report, Zero To Millions
(2019 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TRACK SWARAJ ENGINES

  • Track your investment in SWARAJ ENGINES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON SWARAJ ENGINES

SWARAJ ENGINES 5-YR ANALYSIS

COMPARE SWARAJ ENGINES WITH

MARKET STATS