TECHNOCRAFT 2017-18 Annual Report Analysis

Sat, 31 Mar

TECHNOCRAFT 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.

TECHNOCRAFT Income Statement Analysis

• Operating income during the year rose 27.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.4% in FY18 as against 15.7% in FY17.
• Depreciation charges increased by 21.3% and finance costs increased by 21.6% YoY, respectively.
• Other income grew by 26.3% YoY.
• Net profit for the year grew by 18.2% YoY.
• Net profit margins during the year declined from 10.9% in FY17 to 10.2% in FY18.

TECHNOCRAFT Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	9,280	11,808	27.2%
Other income	Rs m	412	521	26.3%
Total Revenues	Rs m	9,693	12,329	27.2%
Gross profit	Rs m	1,460	1,700	16.4%
Depreciation	Rs m	241	293	21.3%
Interest	Rs m	188	229	21.6%
Profit before tax	Rs m	1,443	1,699	17.8%
Tax	Rs m	428	499	16.7%
Profit after tax	Rs m	1,015	1,200	18.2%
Gross profit margin	%	15.7	14.4
Effective tax rate	%	29.7	29.4
Net profit margin	%	10.9	10.2

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TECHNOCRAFT Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 9 billion as compared to Rs 6 billion in FY17, thereby witnessing an increase of 34.3%.
• Long-term debt stood at Rs 396 million as compared to Rs 229 million during FY17, a growth of 72.6%.
• Current assets rose 20% and stood at Rs 13 billion, while fixed assets rose 16% and stood at Rs 4 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 17 billion as against Rs 14 billion during FY17, thereby witnessing a growth of 19%.

TECHNOCRAFT Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	6,889	7,088	2.9
Current Liabilities	Rs m	6,481	8,701	34.3
Long-term Debt	Rs m	229	396	72.6
Total Liabilities	Rs m	13,855	16,530	19.3
Current assets	Rs m	10,412	12,542	20.5
Fixed Assets	Rs m	3,442	3,987	15.8
Total Assets	Rs m	13,855	16,530	19.3

TECHNOCRAFT Cash Flow Statement Analysis

• TECHNOCRAFT's cash flow from operating activities (CFO) during FY18 stood at Rs -266 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -409 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 530 million, an improvement of 808% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -145 million from the Rs -25 million net cash flows seen during FY17.

TECHNOCRAFT 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	541	-266	-
Cash Flow from Investing Activities	Rs m	-491	-409	-
Cash Flow from Financing Activities	Rs m	-75	530	-
Net Cash Flow	Rs m	-25	-145	-

Current Valuations for TECHNOCRAFT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 49.1, an improvement from the EPS of Rs 38.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 491.5, stands at 11.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 8.2 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	352.9	482.7
TTM Earnings per share	Rs	38.6	49.1
Diluted earnings per share	Rs	41.5	49.0
Price to Cash Flow	x	9.0	8.2
TTM P/E ratio	x	11.7	11.1
Price / Book Value ratio	x	1.3	1.7
Market Cap	Rs m	8,857	12,280
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TECHNOCRAFT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY18, from 1.6x 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 8.4x during FY18, from 8.7x 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 16.9% during FY18, from 14.7% 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 25.8% during FY18, from 22.9% 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 8.6% during FY18, from 8.7% 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	1.6	1.4
Debtors’ Days	Days	747	856
Interest coverage	x	8.7	8.4
Debt to equity ratio	x	0.0	0.1
Return on assets	%	8.7	8.6
Return on equity	%	14.7	16.9
Return on capital employed	%	22.9	25.8

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

TECHNOCRAFT Share Price Performance

Over the last one year, TECHNOCRAFT share price has moved up from Rs 463.6 to Rs 491.5, registering a gain of Rs 28.0 or around 6.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

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

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

Read: Latest Annual Report Analysis of TECHNOCRAFT