RUBY MILLS 2017-18 Annual Report Analysis
Tue, 18 Dec

RUBY MILLS 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.

RUBY MILLS Income Statement Analysis

  • Operating income during the year fell 2.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 8.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.5% in FY18 as against 28.4% in FY17.
  • Depreciation charges increased by 3.2% and finance costs decreased by 15.9% YoY, respectively.
  • Other income declined by 35.0% YoY.
  • Net profit for the year declined by 6.0% YoY.
  • Net profit margins during the year declined from 17.1% in FY17 to 16.9% in FY18.

RUBY MILLS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 2,018 1,972 -2.2%
Other income Rs m 165 107 -35.0%
Total Revenues Rs m 2,183 2,080 -4.7%
Gross profit Rs m 572 522 -8.7%
Depreciation Rs m 150 155 3.2%
Interest Rs m 125 105 -15.9%
Profit before tax Rs m 463 370 -20.0%
Tax Rs m 89 18 -79.3%
Profit after tax Rs m 374 352 -6.0%
Gross profit margin % 28.4 26.5
Effective tax rate % 19.2 4.9
Net profit margin % 17.1 16.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RUBY MILLS Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 2 billion as compared to Rs 2 billion in FY17, thereby witnessing an decrease of -0.9%.
  • Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY17, a fall of 6.7%.
  • Current assets rose 8% and stood at Rs 2 billion, while fixed assets fell 8% and stood at Rs 1 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 10 billion as against Rs 10 billion during FY17, thereby witnessing a growth of 1%.

RUBY MILLS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 4,064 4,384 7.9
 
Current Liabilities Rs m 2,445 2,423 -0.9
Long-term Debt Rs m 2,949 2,752 -6.7
Total Liabilities Rs m 9,681 9,796 1.2
 
Current assets Rs m 1,913 2,075 8.5
Fixed Assets Rs m 1,580 1,457 -7.8
Total Assets Rs m 9,681 9,796 1.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RUBY MILLS Cash Flow Statement Analysis

  • RUBY MILLS's cash flow from operating activities (CFO) during FY18 stood at Rs 486 million, an improvement of 37.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 2 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -413 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 75 million from the Rs -6 million net cash flows seen during FY17.

RUBY MILLS 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 354 486 37.3%
Cash Flow from Investing Activities Rs m -86 2 -
Cash Flow from Financing Activities Rs m -274 -413 -
Net Cash Flow Rs m -6 75 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for RUBY MILLS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.0, an decline from the EPS of Rs 22.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 249.0, stands at 12.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 3.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.2 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 120.7 118.0
TTM Earnings per share Rs 22.4 21.0
Diluted earnings per share Rs 22.4 21.0
Price to Cash Flow x 7.9 8.2
TTM P/E ratio x 12.4 12.4
Price / Book Value ratio x 1.6 1.4
Market Cap Rs m 4,163 4,163
Dividends per share (Unadj.) Rs 1.8 1.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for RUBY MILLS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.9x during FY18, from 0.8x 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 4.5x during FY18, from 4.7x 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 8.0% during FY18, from 9.2% 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 6.7% during FY18, from 8.4% 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 4.7% during FY18, from 5.2% 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 0.8 0.9
Debtors’ Days Days 25 34
Interest coverage x 4.7 4.5
Debt to equity ratio x 0.7 0.6
Return on assets % 5.2 4.7
Return on equity % 9.2 8.0
Return on capital employed % 8.4 6.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

RUBY MILLS Share Price Performance

Over the last one year, RUBY MILLS share price has moved up from Rs 321.3 to Rs 249.0, registering a loss of Rs 72.3 or around 22.5%.

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

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