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

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

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

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

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

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)