TVS MOTORS 2017-18 Annual Report Analysis

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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)

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Related Views on News

TVS MOTORS Announces Quarterly Results (2QFY20); Net Profit Up 20.7% (Quarterly Result Update)

Oct 18, 2019 | Updated on Oct 18, 2019

For the quarter ended September 2019, TVS MOTORS has posted a net profit of Rs 3 bn (up 20.7% YoY). Sales on the other hand came in at Rs 43 bn (down 12.9% YoY). Read on for a complete analysis of TVS MOTORS's quarterly results.

TVS MOTORS Announces Quarterly Results (1QFY20); Net Profit Down 2.9% (Quarterly Result Update)

Jul 23, 2019 | Updated on Jul 23, 2019

For the quarter ended June 2019, TVS MOTORS has posted a net profit of Rs 1 bn (down 2.9% YoY). Sales on the other hand came in at Rs 45 bn (up 7.6% YoY). Read on for a complete analysis of TVS MOTORS's quarterly results.

TVS MOTORS 2018-19 Annual Report Analysis (Annual Result Update)

Jun 27, 2019 | Updated on Jun 27, 2019

Here's an analysis of the annual report of TVS MOTORS for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of TVS MOTORS. Also includes updates on the valuation of TVS MOTORS.

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