RUCHI SOYA INDUSTRIES 2017-18 Annual Report Analysis
Thu, 28 Feb

RUCHI SOYA INDUSTRIES 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.

RUCHI SOYA INDUSTRIES Income Statement Analysis

  • Operating income during the year fell 37.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 574.7% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 42.5% in FY18 as against 4.0% in FY17.
  • Depreciation charges decreased by 10.1% and finance costs increased by 1.0% YoY, respectively.
  • Other income declined by 65.7% YoY.
  • Net profit for the year grew by 322.3% YoY.
  • Net profit margins during the year declined from 7.1% in FY17 to 47.7% in FY18.

RUCHI SOYA INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 191,729 120,271 -37.3%
Other income Rs m 1,076 369 -65.7%
Total Revenues Rs m 192,805 120,639 -37.4%
Gross profit Rs m -7,582 -51,153 574.7%
Depreciation Rs m 1,589 1,428 -10.1%
Interest Rs m 9,606 9,704 1.0%
Profit before tax Rs m -17,700 -61,916 249.8%
Tax Rs m -3,742 -4,369 16.8%
Profit after tax Rs m -13,626 -57,546 322.3%
Gross profit margin % -4.0 -42.5
Effective tax rate % 21.1 7.1
Net profit margin % -7.1 -47.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RUCHI SOYA INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 126 billion as compared to Rs 122 billion in FY17, thereby witnessing an increase of 3.4%.
  • Long-term debt down at Rs 734 million as compared to Rs 797 million during FY17, a fall of 8.0%.
  • Current assets fell 72% and stood at Rs 21 billion, while fixed assets fell 3% and stood at Rs 54 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 77 billion as against Rs 135 billion during FY17, thereby witnessing a fall of 43%.

RUCHI SOYA INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 9,302 -47,069 -606.0
 
Current Liabilities Rs m 121,690 125,802 3.4
Long-term Debt Rs m 797 734 -8.0
Total Liabilities Rs m 135,233 77,315 -42.8
 
Current assets Rs m 77,145 21,277 -72.4
Fixed Assets Rs m 55,611 54,167 -2.6
Total Assets Rs m 135,233 77,315 -42.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RUCHI SOYA INDUSTRIES Cash Flow Statement Analysis

  • RUCHI SOYA INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs -12 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -681 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 12 billion, an improvement of 279% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -594 million from the Rs -1 billion net cash flows seen during FY17.

RUCHI SOYA INDUSTRIES 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 4,414 -11,876 -
Cash Flow from Investing Activities Rs m 863 -681 -
Cash Flow from Financing Activities Rs m -6,685 11,964 -
Net Cash Flow Rs m -1,408 -594 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for RUCHI SOYA INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -172.2, an decline from the EPS of Rs -40.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 5.8, stands at -0.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -0.2 times, while the price to sales ratio stands at 0.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 0.0 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 573.9 360.0
TTM Earnings per share Rs -40.8 -172.2
Diluted earnings per share Rs -40.8 -172.3
Price to Cash Flow x -0.2 0.0
TTM P/E ratio x -0.5 -0.5
Price / Book Value ratio x 0.9 -0.2
Market Cap Rs m 1,938 1,938
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 RUCHI SOYA INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.2x during FY18, from 0.6x 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 -5.4x during FY18, from -0.8x 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 122.3% during FY18, from -146.5% 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 112.7% during FY18, from -76.9% 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 -61.9% during FY18, from -3.0% 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 0.6 0.2
Debtors’ Days Days 101 9
Interest coverage x -0.8 -5.4
Debt to equity ratio x 0.1 0.0
Return on assets % -3.0 -61.9
Return on equity % -146.5 122.3
Return on capital employed % -76.9 112.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how RUCHI SOYA INDUSTRIES has performed over the last 5 years, please visit here.

RUCHI SOYA INDUSTRIES Share Price Performance

Over the last one year, RUCHI SOYA INDUSTRIES share price has moved up from Rs 18.0 to Rs 5.8, registering a loss of Rs 12.2 or around 67.8%.

Overall, the S&P BSE SENSEX is up 4.8% over the year.

(To know more, check out historical annual results for RUCHI SOYA INDUSTRIES and quarterly results for RUCHI SOYA INDUSTRIES)