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USHA MARTIN 2017-18 Annual Report Analysis
Sat, 31 Mar

USHA MARTIN 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.

USHA MARTIN Income Statement Analysis

  • Operating income during the year rose 50.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 32.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.8% in FY18 as against 11.1% in FY17.
  • Depreciation charges increased by 1.6% and finance costs increased by 4.0% YoY, respectively.
  • Other income declined by 6.5% YoY.
  • Net profit for the year declined by 25.2% YoY.
  • Net profit margins during the year grew from 10.2% in FY17 to 5.1% in FY18.

USHA MARTIN Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 35,088 52,806 50.5%
Other income Rs m 1,201 1,122 -6.5%
Total Revenues Rs m 36,288 53,928 48.6%
Gross profit Rs m 3,893 5,159 32.5%
Depreciation Rs m 3,000 3,049 1.6%
Interest Rs m 5,642 5,870 4.0%
Profit before tax Rs m -3,549 -2,637 -25.7%
Tax Rs m 46 51 10.4%
Profit after tax Rs m -3,595 -2,688 -25.2%
Gross profit margin % 11.1 9.8
Effective tax rate % -1.3 -1.9
Net profit margin % -10.2 -5.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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USHA MARTIN Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 38 billion as compared to Rs 38 billion in FY17, thereby witnessing an increase of 0.6%.
  • Long-term debt down at Rs 28 billion as compared to Rs 28 billion during FY17, a fall of 3.2%.
  • Current assets fell 5% and stood at Rs 23 billion, while fixed assets fell 3% and stood at Rs 52 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 75 billion as against Rs 77 billion during FY17, thereby witnessing a fall of 4%.

USHA MARTIN Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 9,449 7,271 -23.1
 
Current Liabilities Rs m 38,048 38,267 0.6
Long-term Debt Rs m 28,448 27,527 -3.2
Total Liabilities Rs m 77,390 74,529 -3.7
 
Current assets Rs m 23,845 22,585 -5.3
Fixed Assets Rs m 53,545 51,944 -3.0
Total Assets Rs m 77,390 74,529 -3.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



USHA MARTIN Cash Flow Statement Analysis

  • USHA MARTIN's cash flow from operating activities (CFO) during FY18 stood at Rs 9 billion, an improvement of 33.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -337 million, an improvement of 8.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -9 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 68 million from the Rs -53 million net cash flows seen during FY17.

USHA MARTIN 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 6,858 9,138 33.2%
Cash Flow from Investing Activities Rs m -312 -337 -
Cash Flow from Financing Activities Rs m -6,626 -8,716 -
Net Cash Flow Rs m -53 68 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for USHA MARTIN

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -8.8, an improvement from the EPS of Rs -11.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 18.3, stands at -2.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.8 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 115.1 173.3
TTM Earnings per share Rs -11.8 -8.8
Diluted earnings per share Rs -11.8 -8.8
Price to Cash Flow x -8.9 20.8
TTM P/E ratio x -8.6 -2.1
Price / Book Value ratio x 0.5 1.0
Market Cap Rs m 5,053 7,512
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for USHA MARTIN

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY18, from 0.6x 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 0.6x during FY18, from 0.4x 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 -37.0% during FY18, from -38.0% 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 9.3% during FY18, from 5.5% 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 4.3% during FY18, from 2.6% 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 0.6 0.6
Debtors’ Days Days 710 464
Interest coverage x 0.4 0.6
Debt to equity ratio x 3.0 3.8
Return on assets % 2.6 4.3
Return on equity % -38.0 -37.0
Return on capital employed % 5.5 9.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how USHA MARTIN has performed over the last 5 years, please visit here.

USHA MARTIN Share Price Performance

Over the last one year, USHA MARTIN share price has moved up from Rs 17.5 to Rs 18.3, registering a gain of Rs 0.9 or around 4.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 13,322.0 (down 2.0%). Over the last one year it has moved up from 11,804.5 to 13,322.0, a gain of 1,518 points (up 12.9%).

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

(To know more, check out historical annual results for USHA MARTIN and quarterly results for USHA MARTIN)

Annual Report FAQs

What is the current share price of USHA MARTIN?

USHA MARTIN currently trades at Rs 287.0 per share. You can check out the latest share price performance of USHA MARTIN here...

What was the revenue of USHA MARTIN in FY18? How does it compare to earlier years?

The revenues of USHA MARTIN stood at Rs 53,928 m in FY18, which was up 48.6% compared to Rs 36,288 m reported in FY17.

USHA MARTIN's revenue has grown from Rs 38,518 m in FY14 to Rs 53,928 m in FY18.

Over the past 5 years, the revenue of USHA MARTIN has grown at a CAGR of 8.8%.

What was the net profit of USHA MARTIN in FY18? How does it compare to earlier years?

The net loss of USHA MARTIN stood at Rs -2,688 m in FY18, which was down -25.2% compared to Rs -3,595 m reported in FY17.

This compares to a net loss of Rs -4,264 m in FY16 and a net loss of Rs -2,514 m in FY15.

Over the past 5 years, USHA MARTIN net profit has grown at a CAGR of NaN%.

What does the cash flow statement of USHA MARTIN reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of USHA MARTIN reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 9,138 m as compared to Rs 6,858 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -337 m as compared to Rs -312 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -8,716 m as compared to Rs -6,626 m in FY17.

Here's the cash flow statement of USHA MARTIN for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations11,4437,2898,5586,8589,138
From Investments-10,446-5,623-3,834-312-337
From Financial Activity184-2,661-4,910-6,626-8,716
Net Cashflow1,128-1,003-199-5368

What does the Key Ratio analysis of USHA MARTIN reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of USHA MARTIN reveals:

  • Operating profit margins witnessed a fall and stood at 9.8% in FY18 as against 11.1% in FY17.
  • Net profit margins grew from 10.2% in FY17 to 5.1% in FY18.
  • Debt to Equity ratio for FY18 stood at 3.8 as compared to 3.0 in FY17.

Here's the ratio/financial analysis of USHA MARTIN for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)18.814.89.211.19.8
Net Profit Margin (%)0.4-6.0-11.5-10.2-5.1
Debt to Equity Ratio (x)1.31.62.23.03.8

Read: Latest Annual Report Analysis of USHA MARTIN

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