THOMAS COOK INDIA 2017-18 Annual Report Analysis

Sat, 31 Mar

THOMAS COOK INDIA 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.

THOMAS COOK INDIA Income Statement Analysis

• Operating income during the year rose 28.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1734.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 55.1% in FY18 as against 3.9% in FY17.
• Depreciation charges increased by 49.4% and finance costs increased by 12.7% YoY, respectively.
• Other income grew by 93.5% YoY.
• Net profit for the year grew by 7011.8% YoY.
• Net profit margins during the year grew from 1.0% in FY17 to 54.4% in FY18.

THOMAS COOK INDIA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	87,624	112,483	28.4%
Other income	Rs m	843	1,632	93.5%
Total Revenues	Rs m	88,468	114,116	29.0%
Gross profit	Rs m	3,378	61,966	1,734.2%
Depreciation	Rs m	915	1,367	49.4%
Interest	Rs m	1,322	1,490	12.7%
Profit before tax	Rs m	1,985	60,741	2,960.3%
Tax	Rs m	1,125	-406	-136.0%
Profit after tax	Rs m	860	61,147	7,011.8%
Gross profit margin	%	3.9	55.1
Effective tax rate	%	56.7	-0.7
Net profit margin	%	1.0	54.4

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

THOMAS COOK INDIA Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 28 billion as compared to Rs 33 billion in FY17, thereby witnessing an decrease of -15.3%.
• Long-term debt down at Rs 2 billion as compared to Rs 7 billion during FY17, a fall of 68.7%.
• Current assets fell 18% and stood at Rs 29 billion, while fixed assets rose 166% and stood at Rs 92 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 121 billion as against Rs 70 billion during FY17, thereby witnessing a growth of 73%.

THOMAS COOK INDIA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	19,511	86,355	342.6
Current Liabilities	Rs m	33,240	28,153	-15.3
Long-term Debt	Rs m	7,376	2,310	-68.7
Total Liabilities	Rs m	69,648	120,600	73.2
Current assets	Rs m	35,147	28,926	-17.7
Fixed Assets	Rs m	34,501	91,675	165.7
Total Assets	Rs m	69,648	120,600	73.2

THOMAS COOK INDIA Cash Flow Statement Analysis

• THOMAS COOK INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -999 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 5 billion, an improvement of 195% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -2 billion from the Rs 2 billion net cash flows seen during FY17.

THOMAS COOK INDIA 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	2,727	-2,442	-
Cash Flow from Investing Activities	Rs m	-2,571	-999	-
Cash Flow from Financing Activities	Rs m	1,614	4,767	195.3%
Net Cash Flow	Rs m	1,808	-2,254	-

Current Valuations for THOMAS COOK INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 165.2, an improvement from the EPS of Rs 2.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 282.8, stands at 43.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 1.5 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	238.9	303.8
TTM Earnings per share	Rs	2.3	165.2
Diluted earnings per share	Rs	1.9	138.3
Price to Cash Flow	x	57.6	1.5
TTM P/E ratio	x	122.1	43.6
Price / Book Value ratio	x	3.8	1.1
Market Cap	Rs m	74,049	91,423
Dividends per share (Unadj.)	Rs	0.4	0.4

Ratio Analysis for THOMAS COOK INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x 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 improved and stood at 41.8x during FY18, from 2.5x 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 70.8% during FY18, from 4.4% 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 70.2% during FY18, from 12.3% 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 51.9% during FY18, from 3.1% 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	1.0
Debtors’ Days	Days	417	278
Interest coverage	x	2.5	41.8
Debt to equity ratio	x	0.4	0.0
Return on assets	%	3.1	51.9
Return on equity	%	4.4	70.8
Return on capital employed	%	12.3	70.2

To see how THOMAS COOK INDIA has performed over the last 5 years, please visit here.

THOMAS COOK INDIA Share Price Performance

Over the last one year, THOMAS COOK INDIA share price has moved up from Rs 231.1 to Rs 282.8, registering a gain of Rs 51.7 or around 22.4%.

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

(To know more, check out historical annual results for THOMAS COOK INDIA and quarterly results for THOMAS COOK INDIA)

Read: Latest Annual Report Analysis of THOMAS COOK INDIA