ROLTA INDIA 2017-18 Annual Report Analysis
Wed, 19 Dec

ROLTA INDIA 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.

ROLTA INDIA Income Statement Analysis

  • Operating income during the year fell 10.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 14.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 28.4% in FY18 as against 30.0% in FY17.
  • Depreciation charges increased by 1.9% and finance costs increased by 10.7% YoY, respectively.
  • Other income declined by 37.5% YoY.
  • Net profit for the year declined by 163.4% YoY.
  • Net profit margins during the year declined from 5.2% in FY17 to 3.7% in FY18.

ROLTA INDIA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 31,799 28,608 -10.0%
Other income Rs m 437 273 -37.5%
Total Revenues Rs m 32,236 28,881 -10.4%
Gross profit Rs m 9,547 8,130 -14.8%
Depreciation Rs m 2,631 2,682 1.9%
Interest Rs m 5,567 6,160 10.7%
Profit before tax Rs m 1,785 -439 -124.6%
Tax Rs m -5,251 618 -111.8%
Profit after tax Rs m 1,667 -1,057 -163.4%
Gross profit margin % 30.0 28.4
Effective tax rate % -294.2 -140.5
Net profit margin % 5.2 -3.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ROLTA INDIA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 36 billion as compared to Rs 22 billion in FY17, thereby witnessing an increase of 60.4%.
  • Long-term debt down at Rs 46 billion as compared to Rs 50 billion during FY17, a fall of 8.6%.
  • Current assets rose 34% and stood at Rs 44 billion, while fixed assets fell 5% and stood at Rs 56 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 110 billion as against Rs 102 billion during FY17, thereby witnessing a growth of 8%.

ROLTA INDIA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 25,847 24,885 -3.7
 
Current Liabilities Rs m 22,183 35,576 60.4
Long-term Debt Rs m 50,179 45,885 -8.6
Total Liabilities Rs m 102,285 110,049 7.6
 
Current assets Rs m 32,979 44,196 34.0
Fixed Assets Rs m 58,435 55,693 -4.7
Total Assets Rs m 102,285 110,049 7.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ROLTA INDIA Cash Flow Statement Analysis

  • ROLTA INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 786 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 798 million 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 -212 million from the Rs -104 million net cash flows seen during FY17.

ROLTA INDIA 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 -464 786 -
Cash Flow from Investing Activities Rs m -865 798 -
Cash Flow from Financing Activities Rs m 1,225 -1,796 -
Net Cash Flow Rs m -104 -212 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ROLTA INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.4, an decline from the EPS of Rs 10.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 9.0, stands at -0.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 0.9 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 193.6 173.1
TTM Earnings per share Rs 10.2 -6.4
Diluted earnings per share Rs 10.1 -6.4
Price to Cash Flow x 0.3 0.9
TTM P/E ratio x -0.5 -0.5
Price / Book Value ratio x 0.4 0.4
Market Cap Rs m 1,483 1,492
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 ROLTA INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during FY18, from 1.5x 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 0.9x during FY18, from 1.3x 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 -4.2% during FY18, from 6.5% 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 8.1% during FY18, from 2.6% 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 4.6% during FY18, from 7.1% 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 1.5 1.2
Debtors’ Days Days 155 188
Interest coverage x 1.3 0.9
Debt to equity ratio x 1.9 1.8
Return on assets % 7.1 4.6
Return on equity % 6.5 -4.2
Return on capital employed % 2.6 8.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

ROLTA INDIA Share Price Performance

Over the last one year, ROLTA INDIA share price has moved up from Rs 54.3 to Rs 9.0, registering a loss of Rs 45.3 or around 83.4%.

Meanwhile, the S&P BSE IT Index is trading at Rs 14,273.6 (down 1.2%). Over the last one year it has moved up from 10,855.8 to 14,273.6, a gain of 3,418 points (up 31.5%).

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

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