TITAGARH WAGONS 2017-18 Annual Report Analysis

Sat, 31 Mar

TITAGARH WAGONS 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.

TITAGARH WAGONS Income Statement Analysis

• Operating income during the year fell 25.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 313.7% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 9.2% in FY18 as against 3.2% in FY17.
• Depreciation charges decreased by 1.3% and finance costs increased by 40.7% YoY, respectively.
• Other income declined by 43.0% YoY.
• Net profit for the year declined by 634.4% YoY.
• Net profit margins during the year declined from 1.6% in FY17 to 11.6% in FY18.

TITAGARH WAGONS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	16,880	12,649	-25.1%
Other income	Rs m	781	445	-43.0%
Total Revenues	Rs m	17,661	13,095	-25.9%
Gross profit	Rs m	545	-1,165	-313.7%
Depreciation	Rs m	515	508	-1.3%
Interest	Rs m	313	441	40.7%
Profit before tax	Rs m	498	-1,669	-435.3%
Tax	Rs m	223	-199	-189.6%
Profit after tax	Rs m	275	-1,469	-634.4%
Gross profit margin	%	3.2	-9.2
Effective tax rate	%	44.8	12.0
Net profit margin	%	1.6	-11.6

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TITAGARH WAGONS Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 17 billion as compared to Rs 14 billion in FY17, thereby witnessing an increase of 20.6%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY17, a fall of 12.6%.
• Current assets rose 6% and stood at Rs 17 billion, while fixed assets rose 11% and stood at Rs 12 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 29 billion as against Rs 27 billion during FY17, thereby witnessing a growth of 8%.

TITAGARH WAGONS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	9,664	8,519	-11.8
Current Liabilities	Rs m	13,865	16,726	20.6
Long-term Debt	Rs m	1,598	1,397	-12.6
Total Liabilities	Rs m	26,950	29,056	7.8
Current assets	Rs m	16,125	17,083	5.9
Fixed Assets	Rs m	10,825	11,974	10.6
Total Assets	Rs m	26,950	29,056	7.8

TITAGARH WAGONS Cash Flow Statement Analysis

• TITAGARH WAGONS's cash flow from operating activities (CFO) during FY18 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -256 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 2 billion, an improvement of 71% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 246 million from the Rs -219 million net cash flows seen during FY17.

TITAGARH WAGONS 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	-1,771	-1,211	-
Cash Flow from Investing Activities	Rs m	683	-256	-
Cash Flow from Financing Activities	Rs m	1,114	1,905	71.1%
Net Cash Flow	Rs m	-219	246	-

Current Valuations for TITAGARH WAGONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -12.7, an decline from the EPS of Rs 2.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 110.0, stands at 450.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at -17.7 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	146.3	109.5
TTM Earnings per share	Rs	2.4	-12.7
Diluted earnings per share	Rs	2.3	-12.3
Price to Cash Flow	x	17.6	-17.7
TTM P/E ratio	x	46.6	450.9
Price / Book Value ratio	x	1.3	2.0
Market Cap	Rs m	12,681	17,007
Dividends per share (Unadj.)	Rs	0.8	0.3

Ratio Analysis for TITAGARH WAGONS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY18, from 1.2x 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 2.6x 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 -17.2% during FY18, from 2.8% 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 -12.4% during FY18, from 7.2% 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 -3.5% during FY18, from 2.2% 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	1.2	1.0
Debtors’ Days	Days	506	797
Interest coverage	x	2.6	-2.8
Debt to equity ratio	x	0.2	0.2
Return on assets	%	2.2	-3.5
Return on equity	%	2.8	-17.2
Return on capital employed	%	7.2	-12.4

To see how TITAGARH WAGONS has performed over the last 5 years, please visit here.

TITAGARH WAGONS Share Price Performance

Over the last one year, TITAGARH WAGONS share price has moved down from Rs 116.4 to Rs 110.0, registering a loss of Rs 6.4 or around 5.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

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

(To know more, check out historical annual results for TITAGARH WAGONS and quarterly results for TITAGARH WAGONS)

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