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TATA INVEST. CORP. 2017-18 Annual Report Analysis

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TATA INVEST. CORP. 2017-18 Annual Report Analysis
Mon, 4 Feb

TATA INVEST. CORP. 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.

TATA INVEST. CORP. Income Statement Analysis

  • Operating income during the year rose 15.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 19.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 91.3% in FY18 as against 88.0% in FY17.
  • Depreciation charges increased by 0.0% increased by 0.0% YoY, respectively.
  • Other income grew by 0.0% YoY.
  • Net profit for the year grew by 22.6% YoY.
  • Net profit margins during the year grew from 74.3% in FY17 to 79.1% in FY18.

TATA INVEST. CORP. Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 2,697 3,106 15.2%
Other income Rs m 1 1 0.0%
Total Revenues Rs m 2,698 3,107 15.2%
Gross profit Rs m 2,372 2,836 19.6%
Depreciation Rs m 1 1 0.0%
Interest Rs m 0 0 0.0%
Profit before tax Rs m 2,372 2,836 19.6%
Tax Rs m 384 467 21.8%
Profit after tax Rs m 2,004 2,458 22.6%
Gross profit margin % 88.0 91.3
Effective tax rate % 16.2 16.5
Net profit margin % 74.3 79.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TATA INVEST. CORP. Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 85 million as compared to Rs 125 million in FY17, thereby witnessing an decrease of -32.5%.
  • Current assets rose 3% and stood at Rs 526 million, while fixed assets rose 0% and stood at Rs 136 million in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 27 billion as against Rs 25 billion during FY17, thereby witnessing a growth of 5%.

TATA INVEST. CORP. Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 25,185 26,476 5.1
 
Current Liabilities Rs m 125 85 -32.5
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 25,371 26,619 4.9
 
Current assets Rs m 511 526 3.0
Fixed Assets Rs m 136 136 0.0
Total Assets Rs m 25,371 26,619 4.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TATA INVEST. CORP. Cash Flow Statement Analysis

  • TATA INVEST. CORP.'s cash flow from operating activities (CFO) during FY18 stood at Rs 669 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 407 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -118 million from the Rs -113 million net cash flows seen during FY17.

TATA INVEST. CORP. 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 675 669 -0.9%
Cash Flow from Investing Activities Rs m -780 407 -
Cash Flow from Financing Activities Rs m -8 -1,194 -
Net Cash Flow Rs m -113 -118 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for TATA INVEST. CORP.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 44.6, an improvement from the EPS of Rs 36.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 865.0, stands at 25.0 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 14.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.1 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 48.9 56.4
TTM Earnings per share Rs 36.4 44.6
Diluted earnings per share Rs 36.4 44.6
Price to Cash Flow x 24.0 20.1
TTM P/E ratio x 25.0 25.0
Price / Book Value ratio x 1.3 1.7
Market Cap Rs m 47,662 47,662
Dividends per share (Unadj.) Rs 18.0 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for TATA INVEST. CORP.

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 6.2x during FY18, from 4.1x 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 28,359.0x during FY18, from 0.0x 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 9.3% during FY18, from 8.0% 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 11.0% during FY18, from 9.5% 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 9.2% during FY18, from 7.9% 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 4.1 6.2
Debtors’ Days Days 0 17
Interest coverage x 0.0 28,359.0
Debt to equity ratio x 0.0 0.0
Return on assets % 7.9 9.2
Return on equity % 8.0 9.3
Return on capital employed % 9.5 11.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how TATA INVEST. CORP. has performed over the last 5 years, please visit here.

TATA INVEST. CORP. Share Price Performance

Over the last one year, TATA INVEST. CORP. share price has moved up from Rs 821.5 to Rs 865.0, registering a gain of Rs 43.6 or around 5.3%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for TATA INVEST. CORP. and quarterly results for TATA INVEST. CORP.)

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