SYMPHONY 2017-18 Annual Report Analysis

Sat, 31 Mar

SYMPHONY 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.

SYMPHONY Income Statement Analysis

• Operating income during the year rose 4.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.3% in FY18 as against 26.1% in FY17.
• Depreciation charges decreased by 1.0% and finance costs increased by 212.1% YoY, respectively.
• Other income grew by 28.3% YoY.
• Net profit for the year grew by 15.8% YoY.
• Net profit margins during the year grew from 21.7% in FY17 to 24.1% in FY18.

SYMPHONY Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	7,648	7,983	4.4%
Other income	Rs m	433	555	28.3%
Total Revenues	Rs m	8,080	8,538	5.7%
Gross profit	Rs m	1,993	2,183	9.6%
Depreciation	Rs m	69	68	-1.0%
Interest	Rs m	7	22	212.1%
Profit before tax	Rs m	2,349	2,648	12.7%
Tax	Rs m	687	723	5.2%
Profit after tax	Rs m	1,663	1,926	15.8%
Gross profit margin	%	26.1	27.3
Effective tax rate	%	29.2	27.3
Net profit margin	%	21.7	24.1

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SYMPHONY Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 2 billion as compared to Rs 2 billion in FY17, thereby witnessing an increase of 0.9%.
• Current assets rose 17% and stood at Rs 6 billion, while fixed assets rose 37% and stood at Rs 3 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 8 billion as against Rs 7 billion during FY17, thereby witnessing a growth of 23%.

SYMPHONY Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	4,651	6,116	31.5
Current Liabilities	Rs m	1,948	1,965	0.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,675	8,194	22.8
Current assets	Rs m	4,773	5,597	17.3
Fixed Assets	Rs m	1,902	2,597	36.5
Total Assets	Rs m	6,675	8,194	22.8

SYMPHONY Cash Flow Statement Analysis

• SYMPHONY's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion, an improvement of 12.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion, an improvement of 57.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -291 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -246 million from the Rs 249 million net cash flows seen during FY17.

SYMPHONY 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	946	1,069	12.9%
Cash Flow from Investing Activities	Rs m	-651	-1,024	-
Cash Flow from Financing Activities	Rs m	-47	-291	-
Net Cash Flow	Rs m	249	-246	-

Current Valuations for SYMPHONY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.5, an improvement from the EPS of Rs 23.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,788.4, stands at 68.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 20.5 times, while the price to sales ratio stands at 15.7 times.
• The company's price to cash flow (P/CF) ratio stood at 59.1 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	109.3	114.1
TTM Earnings per share	Rs	23.8	27.5
Diluted earnings per share	Rs	23.8	27.5
Price to Cash Flow	x	61.6	59.1
TTM P/E ratio	x	61.6	68.4
Price / Book Value ratio	x	19.9	19.3
Market Cap	Rs m	92,571	117,759
Dividends per share (Unadj.)	Rs	4.5	4.5

Ratio Analysis for SYMPHONY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY18, from 2.4x 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 120.8x during FY18, from 332.8x 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 31.5% during FY18, from 35.8% 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 43.7% during FY18, from 50.7% 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 23.8% during FY18, from 25.0% 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	2.4	2.8
Debtors’ Days	Days	250	3
Interest coverage	x	332.8	120.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	25.0	23.8
Return on equity	%	35.8	31.5
Return on capital employed	%	50.7	43.7

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

SYMPHONY Share Price Performance

Over the last one year, SYMPHONY share price has moved up from Rs 1,524.2 to Rs 1,788.4, registering a gain of Rs 264.2 or around 17.3%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 22,261.9 (up 0.2%). Over the last one year it has moved up from 15,257.3 to 22,261.9, a gain of 7,005 points (up 45.9%).

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

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

Read: Latest Annual Report Analysis of SYMPHONY