SIMPLEX INFRA 2017-18 Annual Report Analysis

Sat, 31 Mar

SIMPLEX INFRA 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.

SIMPLEX INFRA Income Statement Analysis

• Operating income during the year rose 2.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.3% in FY18 as against 11.3% in FY17.
• Depreciation charges decreased by 7.5% and finance costs increased by 1.5% YoY, respectively.
• Other income declined by 16.1% YoY.
• Net profit for the year declined by 14.4% YoY.
• Net profit margins during the year declined from 2.4% in FY17 to 2.0% in FY18.

SIMPLEX INFRA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	56,125	57,669	2.8%
Other income	Rs m	1,616	1,356	-16.1%
Total Revenues	Rs m	57,741	59,024	2.2%
Gross profit	Rs m	6,366	6,496	2.0%
Depreciation	Rs m	1,990	1,840	-7.5%
Interest	Rs m	4,450	4,516	1.5%
Profit before tax	Rs m	1,542	1,496	-3.0%
Tax	Rs m	191	340	77.6%
Profit after tax	Rs m	1,351	1,156	-14.4%
Gross profit margin	%	11.3	11.3
Effective tax rate	%	12.4	22.7
Net profit margin	%	2.4	2.0

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SIMPLEX INFRA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 69 billion as compared to Rs 63 billion in FY17, thereby witnessing an increase of 9.7%.
• Long-term debt down at Rs 6 billion as compared to Rs 6 billion during FY17, a fall of 5.1%.
• Current assets rose 10% and stood at Rs 79 billion, while fixed assets fell 4% and stood at Rs 13 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 92 billion as against Rs 85 billion during FY17, thereby witnessing a growth of 8%.

SIMPLEX INFRA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	15,324	16,305	6.4
Current Liabilities	Rs m	62,924	69,003	9.7
Long-term Debt	Rs m	5,804	5,511	-5.1
Total Liabilities	Rs m	85,208	92,093	8.1
Current assets	Rs m	71,911	79,269	10.2
Fixed Assets	Rs m	13,297	12,823	-3.6
Total Assets	Rs m	85,208	92,093	8.1

SIMPLEX INFRA Cash Flow Statement Analysis

• SIMPLEX INFRA's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion, an improvement of 23.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion, an improvement of 65% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 581 million from the Rs 249 million net cash flows seen during FY17.

SIMPLEX INFRA 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	6,733	4,010	-40.5%
Cash Flow from Investing Activities	Rs m	-1,330	-1,635	-
Cash Flow from Financing Activities	Rs m	-5,141	-1,790	-
Net Cash Flow	Rs m	249	581	133.9%

Current Valuations for SIMPLEX INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.4, an decline from the EPS of Rs 27.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 521.4, stands at 25.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 7.9 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	1,134.5	1,165.7
TTM Earnings per share	Rs	27.3	23.4
Diluted earnings per share	Rs	23.6	20.2
Price to Cash Flow	x	5.3	7.9
TTM P/E ratio	x	14.8	25.5
Price / Book Value ratio	x	1.0	1.5
Market Cap	Rs m	14,742	23,672
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for SIMPLEX INFRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 1.1x 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 1.3x during FY18, from 1.3x 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 7.1% during FY18, from 8.8% 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 27.6% during FY18, from 28.4% 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 declined and down at 6.2% during FY18, from 6.8% 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	1.1	1.1
Debtors’ Days	Days	994	918
Interest coverage	x	1.3	1.3
Debt to equity ratio	x	0.4	0.3
Return on assets	%	6.8	6.2
Return on equity	%	8.8	7.1
Return on capital employed	%	28.4	27.6

To see how SIMPLEX INFRA has performed over the last 5 years, please visit here.

SIMPLEX INFRA Share Price Performance

Over the last one year, SIMPLEX INFRA share price has moved up from Rs 311.0 to Rs 521.4, registering a gain of Rs 210.5 or around 67.7%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,229.9 (down 1.1%). Over the last one year it has moved up from 1,600.0 to 2,229.9, a gain of 630 points (up 39.4%).

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

(To know more, check out historical annual results for SIMPLEX INFRA and quarterly results for SIMPLEX INFRA)

Read: Latest Annual Report Analysis of SIMPLEX INFRA