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TINPLATE 2017-18 Annual Report Analysis

Sat, 31 Mar

TINPLATE 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.

TINPLATE Income Statement Analysis

• Operating income during the year rose 130.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 77.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.4% in FY18 as against 10.9% in FY17.
• Depreciation charges decreased by 5.9% and finance costs increased by 6.7% YoY, respectively.
• Other income grew by 2.1% YoY.
• Net profit for the year grew by 162.6% YoY.
• Net profit margins during the year grew from 3.4% in FY17 to 3.8% in FY18.

TINPLATE Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	8,315	19,187	130.8%
Other income	Rs m	188	192	2.1%
Total Revenues	Rs m	8,503	19,379	127.9%
Gross profit	Rs m	907	1,612	77.7%
Depreciation	Rs m	658	619	-5.9%
Interest	Rs m	31	33	6.7%
Profit before tax	Rs m	407	1,152	183.4%
Tax	Rs m	128	421	228.5%
Profit after tax	Rs m	279	732	162.6%
Gross profit margin	%	10.9	8.4
Effective tax rate	%	31.5	36.5
Net profit margin	%	3.4	3.8

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TINPLATE Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 4 billion as compared to Rs 2 billion in FY17, thereby witnessing an increase of 115.2%.
• Current assets rose 89% and stood at Rs 6 billion, while fixed assets fell 2% and stood at Rs 6 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 13 billion as against Rs 10 billion during FY17, thereby witnessing a growth of 28%.

TINPLATE Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	6,223	6,767	8.7
Current Liabilities	Rs m	2,039	4,390	115.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,927	12,744	28.4
Current assets	Rs m	3,332	6,307	89.3
Fixed Assets	Rs m	6,595	6,436	-2.4
Total Assets	Rs m	9,927	12,744	28.4

TINPLATE Cash Flow Statement Analysis

• TINPLATE's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion, an improvement of 19.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -507 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -235 million, an improvement of 17% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 343 million from the Rs 54 million net cash flows seen during FY17.

TINPLATE 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	906	1,084	19.6%
Cash Flow from Investing Activities	Rs m	-569	-507	-
Cash Flow from Financing Activities	Rs m	-283	-235	-
Net Cash Flow	Rs m	54	343	529.9%

Current Valuations for TINPLATE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.0, an improvement from the EPS of Rs 2.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 187.7, stands at 26.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 15.6 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	79.4	183.3
TTM Earnings per share	Rs	2.7	7.0
Diluted earnings per share	Rs	2.7	7.0
Price to Cash Flow	x	8.7	15.6
TTM P/E ratio	x	29.2	26.8
Price / Book Value ratio	x	1.4	3.1
Market Cap	Rs m	8,986	21,080
Dividends per share (Unadj.)	Rs	1.6	2.0

Ratio Analysis for TINPLATE

• 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 improved and stood at 35.9x during FY18, from 14.1x 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 10.8% during FY18, from 4.5% 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 17.5% during FY18, from 7.0% 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 6.0% during FY18, from 3.1% 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	1.6	1.4
Debtors’ Days	Days	361	186
Interest coverage	x	14.1	35.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.1	6.0
Return on equity	%	4.5	10.8
Return on capital employed	%	7.0	17.5

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

TINPLATE Share Price Performance

Over the last one year, TINPLATE share price has moved up from Rs 77.7 to Rs 187.7, registering a gain of Rs 110.0 or around 141.5%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 13,322.0 (down 2.0%). Over the last one year it has moved up from 11,804.5 to 13,322.0, a gain of 1,518 points (up 12.9%).

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

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

Read: Latest Annual Report Analysis of TINPLATE