TITAN COMPANY 2017-18 Annual Report Analysis

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TITAN COMPANY 2017-18 Annual Report Analysis
Thu, 23 Aug

TITAN COMPANY 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.

TITAN COMPANY Income Statement Analysis

  • Operating income during the year rose 21.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 42.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.2% in FY18 as against 8.7% in FY17.
  • Depreciation charges and finance costs increased by 18.9% YoY and 40.2% YoY, respectively.
  • Other income grew by 26.1% YoY.
  • Net profit for the year grew by 58.0% YoY.
  • Net profit margins during the year grew from 5.2% in FY17 to 6.8% in FY18.

TITAN COMPANY Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 132,608 161,198 21.6%
Other income Rs m 705 889 26.1%
Total Revenues Rs m 133,313 162,086 21.6%
Gross profit Rs m 11,537 16,419 42.3%
Depreciation Rs m 1,105 1,314 18.9%
Interest Rs m 377 529 40.2%
Profit before tax Rs m 10,759 15,464 43.7%
Tax Rs m 2,760 4,279 55.0%
Profit after tax Rs m 6,973 11,019 58.0%
Gross profit margin % 8.7 10.2
Effective tax rate % 25.6 27.7
Net profit margin % 5.2 6.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TITAN COMPANY Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 43 billion as compared to Rs 40 billion in FY17, thereby witnessing an increase of 7.1%.
  • Current assets rose 13% and stood at Rs 76 billion, while fixed assets rose 15% and stood at Rs 11 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 95 billion as against Rs 84 billion during FY17, thereby witnessing a growth of 13%.

TITAN COMPANY Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 42,324 50,899 20.3
 
Current Liabilities Rs m 40,278 43,154 7.1
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 84,079 95,242 13.3
 
Current assets Rs m 67,357 76,010 12.8
Fixed Assets Rs m 9,964 11,451 14.9
Total Assets Rs m 84,079 95,242 13.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TITAN COMPANY Cash Flow Statement Analysis

  • TITAN COMPANY's cash flow from operating activities (CFO) during FY18 stood at Rs -507 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 960 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -2 billion from the Rs 6 billion net cash flows seen during FY17.

TITAN COMPANY 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 17,123 -507 -
Cash Flow from Investing Activities Rs m -9,844 960 -
Cash Flow from Financing Activities Rs m -1,656 -2,524 -
Net Cash Flow Rs m 5,948 -2,059 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for TITAN COMPANY

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.4, an improvement from the EPS of Rs 7.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 911.3, stands at 67.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 12.4 times, while the price to sales ratio stands at 3.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 65.6 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 149.4 181.6
TTM Earnings per share Rs 7.9 12.4
Diluted earnings per share Rs 7.9 12.4
Price to Cash Flow x 100.2 65.6
TTM P/E ratio x 67.7 67.7
Price / Book Value ratio x 8.4 12.4
Market Cap Rs m 809,052 809,052
Dividends per share (Unadj.) Rs 2.6 3.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for TITAN COMPANY

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.8x during FY18, from 1.7x 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 30.2x during FY18, from 29.5x 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 21.6% during FY18, from 16.5% 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 31.1% during FY18, from 23.9% 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 improved and stood at 12.1% 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 1.7 1.8
Debtors’ Days Days 6 7
Interest coverage x 29.5 30.2
Debt to equity ratio x 0.0 0.0
Return on assets % 8.7 12.1
Return on equity % 16.5 21.6
Return on capital employed % 23.9 31.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

TITAN COMPANY Share Price Performance

Over the last one year, TITAN COMPANY share price has moved up from Rs 608.1 to Rs 911.3, registering a gain of Rs 303.3 or around 49.9%.

Overall, the S&P BSE SENSEX is up 22.7% over the year.

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

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