UCAL FUEL 2017-18 Annual Report Analysis

Sat, 31 Mar

UCAL FUEL 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.

UCAL FUEL Income Statement Analysis

• Operating income during the year rose 11.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.6% in FY18 as against 14.4% in FY17.
• Depreciation charges decreased by 12.0% and finance costs decreased by 7.5% YoY, respectively.
• Other income declined by 39.3% YoY.
• Net profit for the year grew by 182.3% YoY.
• Net profit margins during the year grew from 5.1% in FY17 to 12.8% in FY18.

UCAL FUEL Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	7,081	7,904	11.6%
Other income	Rs m	110	67	-39.3%
Total Revenues	Rs m	7,191	7,971	10.8%
Gross profit	Rs m	1,021	1,230	20.4%
Depreciation	Rs m	337	296	-12.0%
Interest	Rs m	282	261	-7.5%
Profit before tax	Rs m	513	740	44.2%
Tax	Rs m	154	-273	-276.6%
Profit after tax	Rs m	359	1,012	182.3%
Gross profit margin	%	14.4	15.6
Effective tax rate	%	30.1	-36.9
Net profit margin	%	5.1	12.8

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UCAL FUEL Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 3 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 4.2%.
• Long-term debt down at Rs 735 million as compared to Rs 949 million during FY17, a fall of 22.5%.
• Current assets rose 9% and stood at Rs 2 billion, while fixed assets rose 6% and stood at Rs 5 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 7 billion as against Rs 6 billion during FY17, thereby witnessing a growth of 7%.

UCAL FUEL Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	2,106	2,984	41.7
Current Liabilities	Rs m	3,155	3,287	4.2
Long-term Debt	Rs m	949	735	-22.5
Total Liabilities	Rs m	6,429	6,901	7.3
Current assets	Rs m	2,152	2,348	9.1
Fixed Assets	Rs m	4,277	4,552	6.4
Total Assets	Rs m	6,429	6,901	7.3

UCAL FUEL Cash Flow Statement Analysis

• UCAL FUEL's cash flow from operating activities (CFO) during FY18 stood at Rs 783 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -449 million, an improvement of 138.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -487 million, an improvement of 32% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -158 million from the Rs 24 million net cash flows seen during FY17.

UCAL FUEL 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	980	783	-20.1%
Cash Flow from Investing Activities	Rs m	-188	-449	-
Cash Flow from Financing Activities	Rs m	-714	-487	-
Net Cash Flow	Rs m	24	-158	-

Current Valuations for UCAL FUEL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 45.8, an improvement from the EPS of Rs 16.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 234.8, stands at -8.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 4.4 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	320.2	357.5
TTM Earnings per share	Rs	16.2	45.8
Diluted earnings per share	Rs	16.2	45.8
Price to Cash Flow	x	6.9	4.4
TTM P/E ratio	x	19.3	-8.8
Price / Book Value ratio	x	1.8	1.9
Market Cap	Rs m	3,770	5,738
Dividends per share (Unadj.)	Rs	5.0	10.0

Ratio Analysis for UCAL FUEL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.7x during FY18, from 0.7x 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 improved and stood at 3.8x during FY18, from 2.8x 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 33.9% during FY18, from 17.0% 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 improved and stood at 26.9% during FY18, from 26.0% 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 improved and stood at 18.4% during FY18, from 10.0% 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	0.7	0.7
Debtors’ Days	Days	595	561
Interest coverage	x	2.8	3.8
Debt to equity ratio	x	0.5	0.2
Return on assets	%	10.0	18.4
Return on equity	%	17.0	33.9
Return on capital employed	%	26.0	26.9

To see how UCAL FUEL has performed over the last 5 years, please visit here.

UCAL FUEL Share Price Performance

Over the last one year, UCAL FUEL share price has moved up from Rs 217.4 to Rs 234.8, registering a gain of Rs 17.4 or around 8.0%.

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

(To know more, check out historical annual results for UCAL FUEL and quarterly results for UCAL FUEL)

Read: Latest Annual Report Analysis of UCAL FUEL