X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
TVS MOTORS 2017-18 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

TVS MOTORS 2017-18 Annual Report Analysis
Fri, 17 Aug

TVS MOTORS 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.

TVS MOTORS Income Statement Analysis

  • Operating income during the year rose 30.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 72.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.2% in FY18 as against 7.0% in FY17.
  • Depreciation charges and finance costs increased by 17.9% YoY and 467.3% YoY, respectively.
  • Other income declined by 12.1% YoY.
  • Net profit for the year grew by 30.5% YoY.
  • Net profit margins during the year grew from 4.0% in FY17 to 4.0% in FY18.

TVS MOTORS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 124,626 162,945 30.7%
Other income Rs m 1,654 1,454 -12.1%
Total Revenues Rs m 126,281 164,399 30.2%
Gross profit Rs m 8,688 14,967 72.3%
Depreciation Rs m 3,168 3,736 17.9%
Interest Rs m 596 3,382 467.3%
Profit before tax Rs m 6,578 9,302 41.4%
Tax Rs m 1,487 2,660 78.9%
Profit after tax Rs m 5,093 6,648 30.5%
Gross profit margin % 7.0 9.2
Effective tax rate % 22.6 28.6
Net profit margin % 4.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TVS MOTORS Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 79 billion as compared to Rs 32 billion in FY17, thereby witnessing an increase of 144.7%.
  • Long-term debt stood at Rs 24 billion as compared to Rs 5 billion during FY17, a growth of 371.0%.
  • Current assets rose 162% and stood at Rs 64 billion, while fixed assets rose 32% and stood at Rs 31 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 132 billion as against Rs 61 billion during FY17, thereby witnessing a growth of 116%.

TVS MOTORS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 22,160 26,772 20.8
 
Current Liabilities Rs m 32,086 78,531 144.7
Long-term Debt Rs m 5,012 23,609 371.0
Total Liabilities Rs m 61,280 132,135 115.6
 
Current assets Rs m 24,343 63,729 161.8
Fixed Assets Rs m 23,701 31,209 31.7
Total Assets Rs m 61,280 132,135 115.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TVS MOTORS Cash Flow Statement Analysis

  • TVS MOTORS's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion, an improvement of 48.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 9 billion, an improvement of 1,621% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 2 billion from the Rs -785 million net cash flows seen during FY17.

TVS MOTORS 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 6,894 3,087 -55.2%
Cash Flow from Investing Activities Rs m -7,090 -10,494 -
Cash Flow from Financing Activities Rs m -589 8,965 -
Net Cash Flow Rs m -785 1,558 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for TVS MOTORS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.0, an improvement from the EPS of Rs 10.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 517.2, stands at 36.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 10.9 times, while the price to sales ratio stands at 1.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 23.7 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 262.3 343.0
TTM Earnings per share Rs 10.7 14.0
Diluted earnings per share Rs 10.7 14.0
Price to Cash Flow x 29.7 23.7
TTM P/E ratio x 36.1 36.1
Price / Book Value ratio x 7.7 10.9
Market Cap Rs m 245,693 245,693
Dividends per share (Unadj.) Rs 2.5 3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for TVS MOTORS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.8x during FY18, from 0.8x 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 3.8x during FY18, from 12.0x 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 24.8% during FY18, from 23.0% 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 25.2% during FY18, from 26.4% 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 declined and down at 7.6% during FY18, from 9.3% 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 0.8 0.8
Debtors’ Days Days 21 24
Interest coverage x 12.0 3.8
Debt to equity ratio x 0.2 0.9
Return on assets % 9.3 7.6
Return on equity % 23.0 24.8
Return on capital employed % 26.4 25.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

TVS MOTORS Share Price Performance

Over the last one year, TVS MOTORS share price has moved up from Rs 581.0 to Rs 517.2, registering a loss of Rs 63.9 or around 11.0%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 24,433.1 (up 0.7%). Over the last one year it has moved up from 23,814.2 to 24,433.1, a gain of 619 points (up 2.6%).

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

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

Equitymaster requests your view! Post a comment on "TVS MOTORS 2017-18 Annual Report Analysis". Click here!

  

Related Views on News

TVS MOTORS Announces Quarterly Results (3QFY19); Net Profit Up 15.6% (Quarterly Result Update)

Jan 24, 2019 | Updated on Jan 24, 2019

For the quarter ended December 2018, TVS MOTORS has posted a net profit of Rs 2 bn (up 15.6% YoY). Sales on the other hand came in at Rs 47 bn (up 26.6% YoY). Read on for a complete analysis of TVS MOTORS's quarterly results.

TVS MOTORS Announces Quarterly Results (2QFY19); Net Profit Down 0.9% (Quarterly Result Update)

Nov 9, 2018 | Updated on Nov 9, 2018

For the quarter ended September 2018, TVS MOTORS has posted a net profit of Rs 2 bn (down 0.9% YoY). Sales on the other hand came in at Rs 50 bn (up 23.2% YoY). Read on for a complete analysis of TVS MOTORS's quarterly results.

TVS Motor: Inventory Push Erodes Margins! (Quarterly Results Update - Detailed)

May 22, 2017

TVS Motor Company ltd has announced its financial results for the fourth quarter of the financial year 2016-17 (4QFY17).

Are Firms like Maruti & ONGC Sitting Ducks Against Disruption? (The 5 Minute Wrapup)

May 23, 2017

Are blue chips like Maruti and ONGC safe from the forces of disruption?

More Views on News

Most Popular

The RCom Bankruptcy: 5 Lessons for Smallcap Investors(Profit Hunter)

Feb 7, 2019

Managements of companies can create or ruin their fortunes. Why is management quality such an important factor in valuing businesses? Read on to find out...

The One Real Estate Stock to Buy Now(The 5 Minute Wrapup)

Feb 13, 2019

The real estate sector is ready to make a comeback. This is the stock to consider buying.

Don't Be Afraid of the Market; Buy Stocks Like This One(The 5 Minute Wrapup)

Feb 14, 2019

During this tough period in the market, a contrarian approach holds huge potential upside for this Smart Money Secrets stock.

How We Pick the Most Profitable Stocks from the Portfolios of Super Investors(The 5 Minute Wrapup)

Feb 8, 2019

This is the trick to following super investors and not losing money.

Small Caps Under Seige: Could This Be A Once-in-a-Decade Wealth Creating Opportunity?(Profit Hunter)

Feb 14, 2019

Don't let the dark clouds hovering over small caps scare you into hiding; it will rain gold as sentiments recover. Indeed, there is a blood bath. And if you are a first time investor, the correction is deep enough to scare you out of markets.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK TVS MOTORS

  • Track your investment in TVS MOTORS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

COMPARE TVS MOTORS WITH

MARKET STATS