UPL LIMITED 2017-18 Annual Report Analysis

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UPL LIMITED 2017-18 Annual Report Analysis
Tue, 18 Dec

UPL LIMITED 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.

UPL LIMITED Income Statement Analysis

  • Operating income during the year rose 6.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 17.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.2% in FY18 as against 18.3% in FY17.
  • Depreciation charges increased by 0.4% and finance costs increased by 6.5% YoY, respectively.
  • Other income declined by 6.8% YoY.
  • Net profit for the year grew by 17.1% YoY.
  • Net profit margins during the year grew from 10.3% in FY17 to 11.4% in FY18.

UPL LIMITED Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 163,120 173,780 6.5%
Other income Rs m 4,440 4,140 -6.8%
Total Revenues Rs m 167,560 177,920 6.2%
Gross profit Rs m 29,850 35,050 17.4%
Depreciation Rs m 6,720 6,750 0.4%
Interest Rs m 7,350 7,830 6.5%
Profit before tax Rs m 20,220 24,610 21.7%
Tax Rs m 1,890 2,750 45.5%
Profit after tax Rs m 17,330 20,300 17.1%
Gross profit margin % 18.3 20.2
Effective tax rate % 9.3 11.2
Net profit margin % 10.3 11.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



UPL LIMITED Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 76 billion as compared to Rs 70 billion in FY17, thereby witnessing an increase of 8.7%.
  • Long-term debt stood at Rs 59 billion as compared to Rs 54 billion during FY17, a growth of 9.8%.
  • Current assets rose 10% and stood at Rs 150 billion, while fixed assets rose 22% and stood at Rs 61 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 230 billion as against Rs 204 billion during FY17, thereby witnessing a growth of 13%.

UPL LIMITED Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 73,150 91,690 25.3
 
Current Liabilities Rs m 70,280 76,420 8.7
Long-term Debt Rs m 53,500 58,730 9.8
Total Liabilities Rs m 203,810 230,430 13.1
 
Current assets Rs m 136,580 150,110 9.9
Fixed Assets Rs m 50,370 61,420 21.9
Total Assets Rs m 203,810 230,430 13.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



UPL LIMITED Cash Flow Statement Analysis

  • UPL LIMITED's cash flow from operating activities (CFO) during FY18 stood at Rs 28 billion, an improvement of 9.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -21 billion, an improvement of 109.5% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -8 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -180 million from the Rs 17 billion net cash flows seen during FY17.

UPL LIMITED 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 25,850 28,390 9.8%
Cash Flow from Investing Activities Rs m -9,990 -20,930 -
Cash Flow from Financing Activities Rs m 1,400 -8,010 -
Net Cash Flow Rs m 17,030 -180 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for UPL LIMITED

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.9, an improvement from the EPS of Rs 34.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 746.0, stands at 16.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 2.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.3 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 321.7 341.2
TTM Earnings per share Rs 34.2 39.9
Diluted earnings per share Rs 37.5 44.0
Price to Cash Flow x 15.6 12.3
TTM P/E ratio x 17.7 16.2
Price / Book Value ratio x 4.2 4.4
Market Cap Rs m 378,237 344,503
Dividends per share (Unadj.) Rs 7.0 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for UPL LIMITED

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.0x during FY18, from 1.9x 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 4.1x during FY18, from 3.8x 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 declined and down at 22.1% during FY18, from 23.7% 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 20.5% during FY18, from 21.0% 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 12.2% during FY18, from 12.1% 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 1.9 2.0
Debtors’ Days Days 127 127
Interest coverage x 3.8 4.1
Debt to equity ratio x 0.7 0.6
Return on assets % 12.1 12.2
Return on equity % 23.7 22.1
Return on capital employed % 21.0 20.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how UPL LIMITED has performed over the last 5 years, please visit here.

UPL LIMITED Share Price Performance

Over the last one year, UPL LIMITED share price has moved up from Rs 711.0 to Rs 746.0, registering a gain of Rs 35.0 or around 4.9%.

Overall, the S&P BSE SENSEX is up 7.4% over the year.

(To know more, check out historical annual results for UPL LIMITED and quarterly results for UPL LIMITED)

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