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VOLTAS 2017-18 Annual Report Analysis

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VOLTAS 2017-18 Annual Report Analysis
Tue, 14 Aug

VOLTAS 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.

VOLTAS Income Statement Analysis

  • Operating income during the year rose 6.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 16.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.3% in FY18 as against 9.4% in FY17.
  • Depreciation charges and finance costs decreased by 0.4% YoY and 25.7% YoY, respectively.
  • Other income declined by 17.9% YoY.
  • Net profit for the year grew by 11.2% YoY.
  • Net profit margins during the year grew from 8.3% in FY17 to 8.8% in FY18.

VOLTAS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 60,328 64,044 6.2%
Other income Rs m 2,120 1,741 -17.9%
Total Revenues Rs m 62,448 65,785 5.3%
Gross profit Rs m 5,669 6,626 16.9%
Depreciation Rs m 245 244 -0.4%
Interest Rs m 160 119 -25.7%
Profit before tax Rs m 7,384 8,005 8.4%
Tax Rs m 2,004 2,270 13.3%
Profit after tax Rs m 5,199 5,779 11.2%
Gross profit margin % 9.4 10.3
Effective tax rate % 27.1 28.4
Net profit margin % 8.3 8.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VOLTAS Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 33 billion as compared to Rs 30 billion in FY17, thereby witnessing an increase of 7.5%.
  • Current assets rose 15% and stood at Rs 46 billion, while fixed assets rose 0% and stood at Rs 2 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 73 billion as against Rs 65 billion during FY17, thereby witnessing a growth of 13%.

VOLTAS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 33,066 39,052 18.1
 
Current Liabilities Rs m 30,421 32,712 7.5
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 64,796 73,097 12.8
 
Current assets Rs m 39,896 45,975 15.2
Fixed Assets Rs m 2,190 2,193 0.1
Total Assets Rs m 64,796 73,097 12.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VOLTAS Cash Flow Statement Analysis

  • VOLTAS's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion, an improvement of 169.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion, an improvement of 14% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -553 million from the Rs 1 billion net cash flows seen during FY17.

VOLTAS 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 4,281 3,253 -24.0%
Cash Flow from Investing Activities Rs m -738 -1,992 -
Cash Flow from Financing Activities Rs m -2,115 -1,814 -
Net Cash Flow Rs m 1,428 -553 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for VOLTAS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.5, an improvement from the EPS of Rs 15.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 614.2, stands at 35.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 2.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 34.0 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 182.3 193.6
TTM Earnings per share Rs 15.7 17.5
Diluted earnings per share Rs 15.7 17.5
Price to Cash Flow x 36.1 34.0
TTM P/E ratio x 35.2 35.2
Price / Book Value ratio x 3.5 4.6
Market Cap Rs m 203,226 203,230
Dividends per share (Unadj.) Rs 3.5 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for VOLTAS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 1.3x 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 68.2x during FY18, from 47.0x 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 14.8% during FY18, from 15.7% 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 20.9% during FY18, from 22.3% 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 8.1% during FY18, from 8.3% 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 1.3 1.4
Debtors’ Days Days 88 89
Interest coverage x 47.0 68.2
Debt to equity ratio x 0.0 0.0
Return on assets % 8.3 8.1
Return on equity % 15.7 14.8
Return on capital employed % 22.3 20.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

VOLTAS Share Price Performance

Over the last one year, VOLTAS share price has moved up from Rs 553.3 to Rs 614.2, registering a gain of Rs 61.0 or around 11.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 17,944.8 (down 0.5%). Over the last one year it has moved up from 17,277.3 to 17,944.8, a gain of 667 points (up 3.9%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

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

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1 Responses to "VOLTAS 2017-18 Annual Report Analysis"

Rupesh

Feb 17, 2019

Would like to recieve this if it is free.

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