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THERMAX LTD 2017-18 Annual Report Analysis

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THERMAX LTD 2017-18 Annual Report Analysis
Fri, 17 Aug

THERMAX LTD 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.

THERMAX LTD Income Statement Analysis

  • Operating income during the year fell 0.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 7.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.0% in FY18 as against 9.7% in FY17.
  • Depreciation charges and finance costs increased by 0.7% YoY and 32.3% YoY, respectively.
  • Other income grew by 2.1% YoY.
  • Net profit for the year grew by 6.9% YoY.
  • Net profit margins during the year grew from 4.7% in FY17 to 5.0% in FY18.

THERMAX LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 44,831 44,649 -0.4%
Other income Rs m 1,141 1,164 2.1%
Total Revenues Rs m 45,971 45,813 -0.3%
Gross profit Rs m 4,330 4,009 -7.4%
Depreciation Rs m 819 824 0.7%
Interest Rs m 97 129 32.3%
Profit before tax Rs m 4,554 4,220 -7.3%
Tax Rs m 1,560 1,658 6.3%
Profit after tax Rs m 2,161 2,311 6.9%
Gross profit margin % 9.7 9.0
Effective tax rate % 34.3 39.3
Net profit margin % 4.7 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



THERMAX LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 31 billion as compared to Rs 24 billion in FY17, thereby witnessing an increase of 30.2%.
  • Long-term debt stood at Rs 530 million as compared to Rs 460 million during FY17, a growth of 15.2%.
  • Current assets rose 24% and stood at Rs 41 billion, while fixed assets rose 33% and stood at Rs 11 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 59 billion as against Rs 51 billion during FY17, thereby witnessing a growth of 17%.

THERMAX LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 25,376 27,147 7.0
 
Current Liabilities Rs m 23,652 30,787 30.2
Long-term Debt Rs m 460 530 15.2
Total Liabilities Rs m 50,605 59,450 17.5
 
Current assets Rs m 32,974 41,016 24.4
Fixed Assets Rs m 8,066 10,761 33.4
Total Assets Rs m 50,605 59,450 17.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



THERMAX LTD Cash Flow Statement Analysis

  • THERMAX LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion, an improvement of 59.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -5 billion, an improvement of 608.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -203 million, an improvement of 84% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 67 million from the Rs 1 billion net cash flows seen during FY17.

THERMAX LTD 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 3,346 5,336 59.5%
Cash Flow from Investing Activities Rs m -750 -5,311 -
Cash Flow from Financing Activities Rs m -1,256 -203 -
Net Cash Flow Rs m 1,097 67 -93.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for THERMAX LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.4, an improvement from the EPS of Rs 18.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,021.5, stands at 47.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 2.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 35.9 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 376.2 374.7
TTM Earnings per share Rs 18.1 19.4
Diluted earnings per share Rs 18.1 19.4
Price to Cash Flow x 33.5 35.9
TTM P/E ratio x 47.2 47.2
Price / Book Value ratio x 4.0 4.9
Market Cap Rs m 121,722 121,722
Dividends per share (Unadj.) Rs 6.0 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for THERMAX LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x during FY18, from 1.4x 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 33.8x during FY18, from 47.9x 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 8.5% during FY18, from 8.5% 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 14.8% during FY18, from 14.8% 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 4.1% during FY18, from 4.5% 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 1.4 1.3
Debtors’ Days Days 84 102
Interest coverage x 47.9 33.8
Debt to equity ratio x 0.0 0.0
Return on assets % 4.5 4.1
Return on equity % 8.5 8.5
Return on capital employed % 14.8 14.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

THERMAX LTD Share Price Performance

Over the last one year, THERMAX LTD share price has moved up from Rs 879.5 to Rs 1,021.5, registering a gain of Rs 142.1 or around 16.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 17,884.7 (up 0.8%). Over the last one year it has moved up from 17,247.3 to 17,884.7, a gain of 637 points (up 3.7%).

Overall, the S&P BSE SENSEX is up 19.4% over the year.

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

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