TRIVENI ENGG 2017-18 Annual Report Analysis

Sat, 31 Mar

TRIVENI ENGG 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.

TRIVENI ENGG Income Statement Analysis

• Operating income during the year rose 24.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 36.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.0% in FY18 as against 15.6% in FY17.
• Depreciation charges decreased by 3.2% and finance costs decreased by 32.6% YoY, respectively.
• Other income declined by 44.6% YoY.
• Net profit for the year declined by 56.2% YoY.
• Net profit margins during the year declined from 8.6% in FY17 to 3.0% in FY18.

TRIVENI ENGG Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	26,822	33,285	24.1%
Other income	Rs m	439	243	-44.6%
Total Revenues	Rs m	27,261	33,528	23.0%
Gross profit	Rs m	4,193	2,670	-36.3%
Depreciation	Rs m	572	554	-3.2%
Interest	Rs m	1,266	853	-32.6%
Profit before tax	Rs m	2,794	1,506	-46.1%
Tax	Rs m	492	497	1.1%
Profit after tax	Rs m	2,303	1,009	-56.2%
Gross profit margin	%	15.6	8.0
Effective tax rate	%	17.6	33.0
Net profit margin	%	8.6	3.0

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TRIVENI ENGG Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 20 billion as compared to Rs 19 billion in FY17, thereby witnessing an increase of 1.9%.
• Long-term debt down at Rs 350 million as compared to Rs 3 billion during FY17, a fall of 87.3%.
• Current assets fell 5% and stood at Rs 20 billion, while fixed assets rose 3% and stood at Rs 10 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 30 billion as against Rs 31 billion during FY17, thereby witnessing a fall of 2%.

TRIVENI ENGG Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	8,354	9,464	13.3
Current Liabilities	Rs m	19,320	19,680	1.9
Long-term Debt	Rs m	2,754	350	-87.3
Total Liabilities	Rs m	31,076	30,322	-2.4
Current assets	Rs m	20,928	19,882	-5.0
Fixed Assets	Rs m	10,149	10,429	2.8
Total Assets	Rs m	31,076	30,322	-2.4

TRIVENI ENGG Cash Flow Statement Analysis

• TRIVENI ENGG's cash flow from operating activities (CFO) during FY18 stood at Rs 6 billion, an improvement of 329.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -408 million, an improvement of 5.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -29 million from the Rs 37 million net cash flows seen during FY17.

TRIVENI ENGG 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	1,446	6,208	329.2%
Cash Flow from Investing Activities	Rs m	-388	-408	-
Cash Flow from Financing Activities	Rs m	-1,021	-5,829	-
Net Cash Flow	Rs m	37	-29	-

Current Valuations for TRIVENI ENGG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.9, an decline from the EPS of Rs 8.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 40.9, stands at 9.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 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	104.0	129.0
TTM Earnings per share	Rs	8.9	3.9
Diluted earnings per share	Rs	9.5	4.2
Price to Cash Flow	x	7.5	12.2
TTM P/E ratio	x	6.9	9.5
Price / Book Value ratio	x	2.2	2.0
Market Cap	Rs m	18,224	19,069
Dividends per share (Unadj.)	Rs	0.0	0.3

Ratio Analysis for TRIVENI ENGG

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY18, from 1.1x 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 deteriorated and stood at 2.8x during FY18, from 3.2x 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 declined and down at 10.7% during FY18, from 27.6% 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 declined and down at 24.0% during FY18, from 36.6% 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 declined and down at 6.1% during FY18, from 11.5% 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	1.1	1.0
Debtors’ Days	Days	377	341
Interest coverage	x	3.2	2.8
Debt to equity ratio	x	0.3	0.0
Return on assets	%	11.5	6.1
Return on equity	%	27.6	10.7
Return on capital employed	%	36.6	24.0

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

TRIVENI ENGG Share Price Performance

Over the last one year, TRIVENI ENGG share price has moved down from Rs 88.7 to Rs 40.9, registering a loss of Rs 47.9 or around 53.9%.

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

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

Read: Latest Annual Report Analysis of TRIVENI ENGG