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

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

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	-

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

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

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)