TECHNOCRAFT INDUS. 2017-18 Annual Report Analysis

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TECHNOCRAFT INDUS. 2017-18 Annual Report Analysis
Wed, 30 Jan

TECHNOCRAFT INDUS. 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 INDUS. Income Statement Analysis

  • Operating income during the year rose 26.6% 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 15.6% 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 10.4% in FY17 to 9.7% in FY18.

TECHNOCRAFT INDUS. Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 9,359 11,844 26.6%
Other income Rs m 412 521 26.3%
Total Revenues Rs m 9,771 12,364 26.5%
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 % 15.6 14.4
Effective tax rate % 29.7 29.4
Net profit margin % 10.4 9.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TECHNOCRAFT INDUS. Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 6 billion as compared to Rs 4 billion in FY17, thereby witnessing an increase of 45.1%.
  • Long-term debt stood at Rs 396 million as compared to Rs 230 million during FY17, a growth of 72.6%.
  • Current assets rose 22% and stood at Rs 10 billion, while fixed assets rose 36% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 14 billion as against Rs 12 billion during FY17, thereby witnessing a growth of 20%.

TECHNOCRAFT INDUS. 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 4,163 6,042 45.1
Long-term Debt Rs m 230 396 72.6
Total Liabilities Rs m 11,537 13,871 20.2
 
Current assets Rs m 8,095 9,884 22.1
Fixed Assets Rs m 2,202 2,989 35.7
Total Assets Rs m 11,537 13,871 20.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TECHNOCRAFT INDUS. Cash Flow Statement Analysis

  • TECHNOCRAFT INDUS.'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 809% 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 INDUS. 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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for TECHNOCRAFT INDUS.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 49.0, 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 529.0, stands at 11.3 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 8.7 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 355.8 484.2
TTM Earnings per share Rs 38.6 49.0
Diluted earnings per share Rs 41.5 49.0
Price to Cash Flow x 11.1 8.7
TTM P/E ratio x 12.2 11.3
Price / Book Value ratio x 1.3 1.7
Market Cap Rs m 13,913 12,939
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for TECHNOCRAFT INDUS.

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY18, from 1.9x 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 10.3% during FY18, from 10.4% 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 1.9 1.6
Debtors’ Days Days 74 85
Interest coverage x 8.7 8.4
Debt to equity ratio x 0.0 0.1
Return on assets % 10.4 10.3
Return on equity % 14.7 16.9
Return on capital employed % 22.9 25.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

TECHNOCRAFT INDUS. Share Price Performance

Over the last one year, TECHNOCRAFT INDUS. share price has moved up from Rs 547.0 to Rs 529.0, registering a loss of Rs 18.0 or around 3.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 17,106.4 (up 1.1%). Over the last one year it has moved down from 20,594.9 to 17,106.4, a loss of 3,489 points (down 16.9%).

Overall, the S&P BSE SENSEX is down 2.1% over the year.

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

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