TRANSPORT CORP 2017-18 Annual Report Analysis

Sat, 31 Mar

TRANSPORT 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.

TRANSPORT CORP Income Statement Analysis

• Operating income during the year rose 21.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.2% in FY18 as against 8.3% in FY17.
• Depreciation charges increased by 16.0% and finance costs increased by 7.0% YoY, respectively.
• Other income grew by 15.4% YoY.
• Net profit for the year grew by 54.1% YoY.
• Net profit margins during the year grew from 3.4% in FY17 to 4.3% in FY18.

TRANSPORT CORP Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	19,425	23,499	21.0%
Other income	Rs m	125	144	15.4%
Total Revenues	Rs m	19,550	23,643	20.9%
Gross profit	Rs m	1,617	2,165	33.9%
Depreciation	Rs m	592	686	16.0%
Interest	Rs m	301	322	7.0%
Profit before tax	Rs m	849	1,301	53.2%
Tax	Rs m	191	287	50.0%
Profit after tax	Rs m	658	1,014	54.1%
Gross profit margin	%	8.3	9.2
Effective tax rate	%	22.5	22.0
Net profit margin	%	3.4	4.3

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TRANSPORT CORP Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 4 billion as compared to Rs 4 billion in FY17, thereby witnessing an increase of 10.1%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY17, a growth of 5.8%.
• Current assets rose 18% and stood at Rs 6 billion, while fixed assets rose 11% and stood at Rs 8 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 14%.

TRANSPORT CORP Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	6,466	7,578	17.2
Current Liabilities	Rs m	3,940	4,336	10.1
Long-term Debt	Rs m	1,432	1,514	5.8
Total Liabilities	Rs m	12,294	13,978	13.7
Current assets	Rs m	4,749	5,622	18.4
Fixed Assets	Rs m	7,545	8,356	10.7
Total Assets	Rs m	12,294	13,978	13.7

TRANSPORT CORP Cash Flow Statement Analysis

• TRANSPORT CORP's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 58.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion, an improvement of 7.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -303 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -44 million from the Rs 81 million net cash flows seen during FY17.

TRANSPORT 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	988	1,568	58.7%
Cash Flow from Investing Activities	Rs m	-1,223	-1,309	-
Cash Flow from Financing Activities	Rs m	316	-303	-
Net Cash Flow	Rs m	81	-44	-

Current Valuations for TRANSPORT CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.2, an improvement from the EPS of Rs 8.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 266.3, stands at 19.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 12.9 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	253.7	306.9
TTM Earnings per share	Rs	8.6	13.2
Diluted earnings per share	Rs	8.5	13.1
Price to Cash Flow	x	14.5	12.9
TTM P/E ratio	x	25.7	19.8
Price / Book Value ratio	x	3.2	2.9
Market Cap	Rs m	20,370	21,964
Dividends per share (Unadj.)	Rs	1.1	1.6

Ratio Analysis for TRANSPORT CORP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY18, from 1.2x 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 5.0x during FY18, from 3.8x 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 13.4% during FY18, from 10.2% 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 17.8% during FY18, from 14.6% 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 9.6% during FY18, from 7.8% 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	1.2	1.3
Debtors’ Days	Days	674	660
Interest coverage	x	3.8	5.0
Debt to equity ratio	x	0.2	0.2
Return on assets	%	7.8	9.6
Return on equity	%	10.2	13.4
Return on capital employed	%	14.6	17.8

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

TRANSPORT CORP Share Price Performance

Over the last one year, TRANSPORT CORP share price has moved up from Rs 234.0 to Rs 266.3, registering a gain of Rs 32.3 or around 13.8%.

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

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

Read: Latest Annual Report Analysis of TRANSPORT CORP