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VADILAL INDUSTRIES 2017-18 Annual Report Analysis

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VADILAL INDUSTRIES 2017-18 Annual Report Analysis
Thu, 20 Dec

VADILAL INDUSTRIES 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.

VADILAL INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 14.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 10.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.3% in FY18 as against 11.8% in FY17.
  • Depreciation charges increased by 8.0% and finance costs decreased by 4.2% YoY, respectively.
  • Other income declined by 2.9% YoY.
  • Net profit for the year declined by 17.8% YoY.
  • Net profit margins during the year declined from 3.9% in FY17 to 2.8% in FY18.

VADILAL INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 4,822 5,503 14.1%
Other income Rs m 35 34 -2.9%
Total Revenues Rs m 4,857 5,537 14.0%
Gross profit Rs m 568 510 -10.1%
Depreciation Rs m 149 161 8.0%
Interest Rs m 160 153 -4.2%
Profit before tax Rs m 293 229 -21.7%
Tax Rs m 102 73 -28.8%
Profit after tax Rs m 191 157 -17.8%
Gross profit margin % 11.8 9.3
Effective tax rate % 34.9 31.7
Net profit margin % 3.9 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VADILAL INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 2 billion as compared to Rs 2 billion in FY17, thereby witnessing an decrease of -14.4%.
  • Long-term debt stood at Rs 710 million as compared to Rs 344 million during FY17, a growth of 106.4%.
  • Current assets rose 10% and stood at Rs 2 billion, while fixed assets rose 3% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 4 billion as against Rs 4 billion during FY17, thereby witnessing a growth of 6%.

VADILAL INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 1,608 1,753 9.0
 
Current Liabilities Rs m 1,916 1,640 -14.4
Long-term Debt Rs m 344 710 106.4
Total Liabilities Rs m 4,137 4,401 6.4
 
Current assets Rs m 1,486 1,628 9.5
Fixed Assets Rs m 2,555 2,640 3.3
Total Assets Rs m 4,137 4,401 6.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VADILAL INDUSTRIES Cash Flow Statement Analysis

  • VADILAL INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs 166 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -240 million, an improvement of 4.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 61 million, an improvement of 131% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -13 million from the Rs 26 million net cash flows seen during FY17.

VADILAL INDUSTRIES 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 455 166 -63.5%
Cash Flow from Investing Activities Rs m -231 -240 -
Cash Flow from Financing Activities Rs m -199 61 -
Net Cash Flow Rs m 26 -13 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for VADILAL INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.8, an decline from the EPS of Rs 26.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 544.2, stands at 10.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 1.3 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 669.7 764.3
TTM Earnings per share Rs 26.5 21.8
Diluted earnings per share Rs 26.5 21.8
Price to Cash Flow x 11.5 12.3
TTM P/E ratio x 10.9 10.9
Price / Book Value ratio x 3.2 4.0
Market Cap Rs m 3,918 3,918
Dividends per share (Unadj.) Rs 1.3 1.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for VADILAL INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY18, from 0.8x 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 2.5x 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 declined and down at 8.9% during FY18, from 11.9% 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 15.5% during FY18, from 23.2% 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 7.0% during FY18, from 8.5% 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 0.8 1.0
Debtors’ Days Days 8 28
Interest coverage x 2.8 2.5
Debt to equity ratio x 0.2 0.4
Return on assets % 8.5 7.0
Return on equity % 11.9 8.9
Return on capital employed % 23.2 15.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how VADILAL INDUSTRIES has performed over the last 5 years, please visit here.

VADILAL INDUSTRIES Share Price Performance

Over the last one year, VADILAL INDUSTRIES share price has moved up from Rs 987.9 to Rs 544.2, registering a loss of Rs 443.8 or around 44.9%.

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

(To know more, check out historical annual results for VADILAL INDUSTRIES and quarterly results for VADILAL INDUSTRIES)

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VADILAL INDUSTRIES Announces Quarterly Results (3QFY19); Net Profit Up 70.9% (Quarterly Result Update)

Feb 18, 2019 | Updated on Feb 18, 2019

For the quarter ended December 2018, VADILAL INDUSTRIES has posted a net profit of Rs 25 m (up 70.9% YoY). Sales on the other hand came in at Rs 941 m (up 40.7% YoY). Read on for a complete analysis of VADILAL INDUSTRIES's quarterly results.

VADILAL INDUSTRIES Announces Quarterly Results (4QFY18); Net Profit Down 132.4% (Quarterly Result Update)

Jun 13, 2018 | Updated on Jun 13, 2018

For the quarter ended March 2018, VADILAL INDUSTRIES has posted a net profit of Rs 23 m (down 132.4% YoY). Sales on the other hand came in at Rs 1 bn (up 16.4% YoY). Read on for a complete analysis of VADILAL INDUSTRIES's quarterly results.

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