TILAKNAGAR IND. 2017-18 Annual Report Analysis

Sat, 31 Mar

TILAKNAGAR IND. 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.

TILAKNAGAR IND. Income Statement Analysis

• Operating income during the year rose 20.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 103.0% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 2.1% in FY18 as against 85.2% in FY17.
• Depreciation charges decreased by 2.2% and finance costs decreased by 3.4% YoY, respectively.
• Other income grew by 732.4% YoY.
• Net profit for the year declined by 45.9% YoY.
• Net profit margins during the year declined from 246.9% in FY17 to 111.1% in FY18.

TILAKNAGAR IND. Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	-1,132	-1,361	20.2%
Other income	Rs m	40	335	732.4%
Total Revenues	Rs m	-1,092	-1,025	-6.1%
Gross profit	Rs m	-965	29	-103.0%
Depreciation	Rs m	381	373	-2.2%
Interest	Rs m	1,572	1,519	-3.4%
Profit before tax	Rs m	-2,879	-1,528	-46.9%
Tax	Rs m	-83	-17	-79.3%
Profit after tax	Rs m	-2,796	-1,511	-45.9%
Gross profit margin	%	85.2	-2.1
Effective tax rate	%	2.9	1.1
Net profit margin	%	246.9	111.1

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TILAKNAGAR IND. Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 13 billion as compared to Rs 13 billion in FY17, thereby witnessing an increase of 2.0%.
• Long-term debt stood at Rs 1 million as compared to Rs 0 million during FY17, a fall of 0.0%.
• Current assets fell 32% and stood at Rs 4 billion, while fixed assets rose 21% and stood at Rs 8 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 13 billion as against Rs 14 billion during FY17, thereby witnessing a fall of 5%.

TILAKNAGAR IND. Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	152	-1,336	-980.9
Current Liabilities	Rs m	12,769	13,028	2.0
Long-term Debt	Rs m	0	1	0.0
Total Liabilities	Rs m	13,504	12,841	-4.9
Current assets	Rs m	6,609	4,480	-32.2
Fixed Assets	Rs m	6,895	8,361	21.3
Total Assets	Rs m	13,504	12,841	-4.9

TILAKNAGAR IND. Cash Flow Statement Analysis

• TILAKNAGAR IND.'s cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 574.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -78 million, an improvement of 232.5% 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 620 million from the Rs -46 million net cash flows seen during FY17.

TILAKNAGAR IND. 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	259	1,747	574.1%
Cash Flow from Investing Activities	Rs m	-24	-78	-
Cash Flow from Financing Activities	Rs m	-282	-1,050	-
Net Cash Flow	Rs m	-46	620	-

Current Valuations for TILAKNAGAR IND.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -12.1, an improvement from the EPS of Rs -22.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 18.7, stands at -2.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -2.2 times, while the price to sales ratio stands at -1.7 times.
• The company's price to cash flow (P/CF) ratio stood at -1.9 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	-9.1	-10.9
TTM Earnings per share	Rs	-22.4	-12.1
Diluted earnings per share	Rs	-17.6	-9.5
Price to Cash Flow	x	-0.9	-1.9
TTM P/E ratio	x	-0.8	-2.0
Price / Book Value ratio	x	13.3	-1.7
Market Cap	Rs m	2,021	2,216
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TILAKNAGAR IND.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY18, from 0.5x 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 0.0x during FY18, from -0.8x 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 113.1% during FY18, from -1,843.8% 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 0.7% during FY18, from -861.4% 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 0.1% during FY18, from -9.1% 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	0.5	0.3
Debtors’ Days	Days	-4,824	-4,644
Interest coverage	x	-0.8	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-9.1	0.1
Return on equity	%	-1,843.8	113.1
Return on capital employed	%	-861.4	0.7

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

TILAKNAGAR IND. Share Price Performance

Over the last one year, TILAKNAGAR IND. share price has moved up from Rs 13.7 to Rs 18.7, registering a gain of Rs 5.0 or around 36.1%.

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

(To know more, check out historical annual results for TILAKNAGAR IND. and quarterly results for TILAKNAGAR IND.)

Read: Latest Annual Report Analysis of TILAKNAGAR IND.