TEXMACO INFRA 2017-18 Annual Report Analysis

Sat, 31 Mar

TEXMACO INFRA 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.

TEXMACO INFRA Income Statement Analysis

• Operating income during the year fell 23.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 27.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.5% in FY18 as against 27.0% in FY17.
• Depreciation charges increased by 0.9% and finance costs increased by 129.4% YoY, respectively.
• Other income declined by 13.4% YoY.
• Net profit for the year declined by 41.0% YoY.
• Net profit margins during the year declined from 53.0% in FY17 to 40.9% in FY18.

TEXMACO INFRA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	239	183	-23.6%
Other income	Rs m	113	98	-13.4%
Total Revenues	Rs m	352	280	-20.3%
Gross profit	Rs m	65	47	-27.7%
Depreciation	Rs m	25	26	0.9%
Interest	Rs m	10	23	129.4%
Profit before tax	Rs m	142	96	-32.6%
Tax	Rs m	15	21	38.5%
Profit after tax	Rs m	127	75	-41.0%
Gross profit margin	%	27.0	25.5
Effective tax rate	%	10.6	21.8
Net profit margin	%	53.0	40.9

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TEXMACO INFRA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 74 million as compared to Rs 47 million in FY17, thereby witnessing an increase of 57.3%.
• Long-term debt stood at Rs 261 million as compared to Rs 7 million during FY17, a growth of 3627.1%.
• Current assets fell 2% and stood at Rs 1 billion, while fixed assets rose 16% and stood at Rs 6 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 7 billion as against Rs 7 billion during FY17, thereby witnessing a growth of 13%.

TEXMACO INFRA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	6,643	7,201	8.4
Current Liabilities	Rs m	47	74	57.3
Long-term Debt	Rs m	7	261	3,627.1
Total Liabilities	Rs m	6,643	7,492	12.8
Current assets	Rs m	1,093	1,072	-1.9
Fixed Assets	Rs m	5,550	6,419	15.7
Total Assets	Rs m	6,643	7,492	12.8

TEXMACO INFRA Cash Flow Statement Analysis

• TEXMACO INFRA's cash flow from operating activities (CFO) during FY18 stood at Rs 17 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -260 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 220 million, an improvement of 823% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -22 million from the Rs 11 million net cash flows seen during FY17.

TEXMACO INFRA 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	-10	17	-
Cash Flow from Investing Activities	Rs m	51	-260	-
Cash Flow from Financing Activities	Rs m	-30	220	-
Net Cash Flow	Rs m	11	-22	-

Current Valuations for TEXMACO INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.6, an decline from the EPS of Rs 1.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 61.4, stands at 81.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 42.8 times.
• The company's price to cash flow (P/CF) ratio stood at 75.6 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	1.9	1.4
TTM Earnings per share	Rs	1.0	0.6
Diluted earnings per share	Rs	1.0	0.6
Price to Cash Flow	x	33.2	75.6
TTM P/E ratio	x	34.4	81.1
Price / Book Value ratio	x	0.8	1.1
Market Cap	Rs m	5,221	7,585
Dividends per share (Unadj.)	Rs	0.2	0.2

Ratio Analysis for TEXMACO INFRA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 14.6x during FY18, from 23.4x 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 5.1x during FY18, from 15.1x 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 1.0% during FY18, from 1.9% 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 1.6% during FY18, from 2.3% 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 1.3% during FY18, from 2.1% 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	23.4	14.6
Debtors’ Days	Days	319	498
Interest coverage	x	15.1	5.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.1	1.3
Return on equity	%	1.9	1.0
Return on capital employed	%	2.3	1.6

To see how TEXMACO INFRA has performed over the last 5 years, please visit here.

TEXMACO INFRA Share Price Performance

Over the last one year, TEXMACO INFRA share price has moved up from Rs 39.6 to Rs 61.4, registering a gain of Rs 21.8 or around 55.1%.

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 TEXMACO INFRA and quarterly results for TEXMACO INFRA)

Read: Latest Annual Report Analysis of TEXMACO INFRA