SHREE RENUKA SUGARS 2017-18 Annual Report Analysis
Wed, 19 Dec

SHREE RENUKA SUGARS 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.

SHREE RENUKA SUGARS Income Statement Analysis

  • Operating income during the year fell 34.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 502.6% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 19.3% in FY18 as against 3.1% in FY17.
  • Depreciation charges increased by 1.8% and finance costs increased by 3.4% YoY, respectively.
  • Other income declined by 72.6% YoY.
  • Net profit for the year grew by 106.4% YoY.
  • Net profit margins during the year declined from 8.8% in FY17 to 28.2% in FY18.

SHREE RENUKA SUGARS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 118,445 77,280 -34.8%
Other income Rs m 3,536 969 -72.6%
Total Revenues Rs m 121,980 78,250 -35.9%
Gross profit Rs m 3,701 -14,900 -502.6%
Depreciation Rs m 8,455 8,606 1.8%
Interest Rs m 9,318 9,633 3.4%
Profit before tax Rs m -10,536 -32,169 205.3%
Tax Rs m 139 -5,138 -3,801.9%
Profit after tax Rs m -10,675 -22,038 106.4%
Gross profit margin % 3.1 -19.3
Effective tax rate % -1.3 16.0
Net profit margin % -8.8 -28.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SHREE RENUKA SUGARS Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 99 billion as compared to Rs 102 billion in FY17, thereby witnessing an decrease of -2.6%.
  • Long-term debt down at Rs 29 billion as compared to Rs 50 billion during FY17, a fall of 42.4%.
  • Current assets fell 28% and stood at Rs 26 billion, while fixed assets fell 19% and stood at Rs 62 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 100 billion as against Rs 131 billion during FY17, thereby witnessing a fall of 23%.

SHREE RENUKA SUGARS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m -26,522 -36,712 38.4
 
Current Liabilities Rs m 101,980 99,323 -2.6
Long-term Debt Rs m 50,461 29,058 -42.4
Total Liabilities Rs m 130,553 100,019 -23.4
 
Current assets Rs m 35,619 25,814 -27.5
Fixed Assets Rs m 76,442 62,213 -18.6
Total Assets Rs m 130,553 100,019 -23.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SHREE RENUKA SUGARS Cash Flow Statement Analysis

  • SHREE RENUKA SUGARS's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -40 million from the Rs 75 million net cash flows seen during FY17.

SHREE RENUKA SUGARS 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 8,101 4,187 -48.3%
Cash Flow from Investing Activities Rs m -5,831 -1,932 -
Cash Flow from Financing Activities Rs m -2,195 -2,296 -
Net Cash Flow Rs m 75 -40 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SHREE RENUKA SUGARS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -11.5, an decline from the EPS of Rs -11.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 11.2, stands at -0.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -0.9 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at -0.8 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 125.3 40.3
TTM Earnings per share Rs -11.3 -11.5
Diluted earnings per share Rs -11.5 -23.7
Price to Cash Flow x -4.8 -0.8
TTM P/E ratio x -0.4 -0.4
Price / Book Value ratio x -0.5 -0.9
Market Cap Rs m 10,615 10,431
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SHREE RENUKA SUGARS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.3x during FY18, from 0.3x 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 -2.3x during FY18, from -0.1x 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 60.0% during FY18, from 40.3% 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 229.2% during FY18, from -5.1% 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 -12.4% during FY18, from -1.0% 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 0.3 0.3
Debtors’ Days Days 31 36
Interest coverage x -0.1 -2.3
Debt to equity ratio x -1.9 -0.8
Return on assets % -1.0 -12.4
Return on equity % 40.3 60.0
Return on capital employed % -5.1 229.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how SHREE RENUKA SUGARS has performed over the last 5 years, please visit here.

SHREE RENUKA SUGARS Share Price Performance

Over the last one year, SHREE RENUKA SUGARS share price has moved up from Rs 17.2 to Rs 11.2, registering a loss of Rs 5.9 or around 34.5%.

Overall, the S&P BSE SENSEX is up 8.6% over the year.

(To know more, check out historical annual results for SHREE RENUKA SUGARS and quarterly results for SHREE RENUKA SUGARS)