ZUARI GLOBAL 2017-18 Annual Report Analysis

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ZUARI GLOBAL 2017-18 Annual Report Analysis
Tue, 18 Dec

ZUARI GLOBAL 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.

ZUARI GLOBAL Income Statement Analysis

  • Operating income during the year fell 9.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 203.6% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 6.4% in FY18 as against 5.6% in FY17.
  • Depreciation charges increased by 34.9% and finance costs increased by 39.8% YoY, respectively.
  • Other income grew by 55.0% YoY.
  • Net profit for the year grew by 88.0% YoY.
  • Net profit margins during the year declined from 3.1% in FY17 to 6.1% in FY18.

ZUARI GLOBAL Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 6,034 5,474 -9.3%
Other income Rs m 470 728 55.0%
Total Revenues Rs m 6,504 6,201 -4.6%
Gross profit Rs m 338 -351 -203.6%
Depreciation Rs m 148 200 34.9%
Interest Rs m 659 922 39.8%
Profit before tax Rs m 1 -744 -148,960.0%
Tax Rs m 3 40 1,478.1%
Profit after tax Rs m -203 -381 88.0%
Gross profit margin % 5.6 -6.4
Effective tax rate % 512.0 -5.4
Net profit margin % -3.1 -6.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ZUARI GLOBAL Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 10 billion as compared to Rs 8 billion in FY17, thereby witnessing an increase of 20.3%.
  • Long-term debt stood at Rs 7 billion as compared to Rs 4 billion during FY17, a growth of 60.3%.
  • Current assets rose 30% and stood at Rs 12 billion, while fixed assets rose 2% and stood at Rs 4 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 42 billion as against Rs 32 billion during FY17, thereby witnessing a growth of 29%.

ZUARI GLOBAL Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 19,098 24,100 26.2
 
Current Liabilities Rs m 8,398 10,104 20.3
Long-term Debt Rs m 4,303 6,898 60.3
Total Liabilities Rs m 32,345 41,756 29.1
 
Current assets Rs m 8,967 11,646 29.9
Fixed Assets Rs m 4,044 4,112 1.7
Total Assets Rs m 32,345 41,756 29.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ZUARI GLOBAL Cash Flow Statement Analysis

  • ZUARI GLOBAL's cash flow from operating activities (CFO) during FY18 stood at Rs -1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -973 million, an improvement of 1,689.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 2 billion, an improvement of 319% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -89 million from the Rs 54 million net cash flows seen during FY17.

ZUARI GLOBAL 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 1,087 -1,256 -
Cash Flow from Investing Activities Rs m -54 -973 -
Cash Flow from Financing Activities Rs m -979 2,141 -
Net Cash Flow Rs m 54 -89 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ZUARI GLOBAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -12.9, an decline from the EPS of Rs -6.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 112.2, stands at 86.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at -11.3 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 205.0 185.9
TTM Earnings per share Rs -6.9 -12.9
Diluted earnings per share Rs -3.4 -6.5
Price to Cash Flow x -855.4 -11.3
TTM P/E ratio x 43.0 86.1
Price / Book Value ratio x 0.2 0.3
Market Cap Rs m 3,302 6,603
Dividends per share (Unadj.) Rs 1.0 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ZUARI GLOBAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during FY18, from 1.1x 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 0.2x during FY18, from 1.0x 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 -1.6% during FY18, from -1.1% 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 1.9% during FY18, from 2.0% 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 declined and down at 1.3% during FY18, from 1.4% 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 1.1 1.2
Debtors’ Days Days 56 87
Interest coverage x 1.0 0.2
Debt to equity ratio x 0.2 0.3
Return on assets % 1.4 1.3
Return on equity % -1.1 -1.6
Return on capital employed % 2.0 1.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

ZUARI GLOBAL Share Price Performance

Over the last one year, ZUARI GLOBAL share price has moved up from Rs 250.4 to Rs 112.2, registering a loss of Rs 138.3 or around 55.2%.

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

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

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Related Views on News

ZUARI GLOBAL Announces Quarterly Results (4QFY19); Net Profit Down 80.0% (Quarterly Result Update)

May 29, 2019 | Updated on May 29, 2019

For the quarter ended March 2019, ZUARI GLOBAL has posted a net profit of Rs 4 m (down 80.0% YoY). Sales on the other hand came in at Rs 7 m (down 86.9% YoY). Read on for a complete analysis of ZUARI GLOBAL's quarterly results.

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