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VADILAL INDUSTRIES 2017-18 Annual Report Analysis
Sat, 31 Mar

VADILAL 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.

VADILAL INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 15.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 15.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.9% in FY18 as against 12.0% in FY17.
  • Depreciation charges increased by 8.0% and finance costs decreased by 4.2% YoY, respectively.
  • Other income grew by 74.7% YoY.
  • Net profit for the year declined by 17.8% YoY.
  • Net profit margins during the year declined from 4.0% in FY17 to 2.9% in FY18.

VADILAL INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 4,707 5,425 15.2%
Other income Rs m 36 63 74.7%
Total Revenues Rs m 4,743 5,487 15.7%
Gross profit Rs m 566 481 -15.0%
Depreciation Rs m 149 161 8.0%
Interest Rs m 160 153 -4.2%
Profit before tax Rs m 293 229 -21.7%
Tax Rs m 102 73 -28.8%
Profit after tax Rs m 191 157 -17.8%
Gross profit margin % 12.0 8.9
Effective tax rate % 34.9 31.7
Net profit margin % 4.0 2.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

VADILAL INDUSTRIES 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 -14.7%.
  • Long-term debt stood at Rs 710 million as compared to Rs 344 million during FY17, a growth of 106.4%.
  • Current assets rose 9% and stood at Rs 2 billion, while fixed assets rose 5% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 4 billion as against Rs 4 billion during FY17, thereby witnessing a growth of 6%.

VADILAL INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 1,608 1,753 9.0
 
Current Liabilities Rs m 1,916 1,634 -14.7
Long-term Debt Rs m 344 710 106.4
Total Liabilities Rs m 4,137 4,394 6.2
 
Current assets Rs m 1,486 1,621 9.1
Fixed Assets Rs m 2,651 2,773 4.6
Total Assets Rs m 4,137 4,394 6.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



VADILAL INDUSTRIES Cash Flow Statement Analysis

  • VADILAL INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs 166 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -240 million, an improvement of 4.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 61 million, an improvement of 131% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -13 million from the Rs 26 million net cash flows seen during FY17.

VADILAL 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 455 166 -63.5%
Cash Flow from Investing Activities Rs m -231 -240 -
Cash Flow from Financing Activities Rs m -198 61 -
Net Cash Flow Rs m 26 -13 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for VADILAL INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.8, an decline from the EPS of Rs 26.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 846.8, stands at 41.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 1.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.9 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 654.7 754.5
TTM Earnings per share Rs 26.5 21.8
Diluted earnings per share Rs 26.5 21.8
Price to Cash Flow x 20.5 21.9
TTM P/E ratio x 42.8 41.0
Price / Book Value ratio x 3.2 4.0
Market Cap Rs m 5,165 6,978
Dividends per share (Unadj.) Rs 1.3 1.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for VADILAL INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x 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 2.5x during FY18, from 2.8x 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 declined and down at 8.9% during FY18, from 11.9% 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 15.5% during FY18, from 23.2% 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 7.0% during FY18, from 8.5% 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 1.0
Debtors’ Days Days 84 283
Interest coverage x 2.8 2.5
Debt to equity ratio x 0.2 0.4
Return on assets % 8.5 7.0
Return on equity % 11.9 8.9
Return on capital employed % 23.2 15.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

VADILAL INDUSTRIES Share Price Performance

Over the last one year, VADILAL INDUSTRIES share price has moved down from Rs 971.4 to Rs 846.8, registering a loss of Rs 124.6 or around 12.8%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Annual Report FAQs

What is the current share price of VADILAL INDUSTRIES?

VADILAL INDUSTRIES currently trades at Rs 4,345.6 per share. You can check out the latest share price performance of VADILAL INDUSTRIES here...

What was the revenue of VADILAL INDUSTRIES in FY18? How does it compare to earlier years?

The revenues of VADILAL INDUSTRIES stood at Rs 5,487 m in FY18, which was up 15.7% compared to Rs 4,743 m reported in FY17.

VADILAL INDUSTRIES' revenue has grown from Rs 4,399 m in FY16 to Rs 5,487 m in FY18.

Over the past 3 years, the revenue of VADILAL INDUSTRIES has grown at a CAGR of 11.7%.

What was the net profit of VADILAL INDUSTRIES in FY18? How does it compare to earlier years?

The net profit of VADILAL INDUSTRIES stood at Rs 157 m in FY18, which was down -17.8% compared to Rs 191 m reported in FY17.

This compares to a net profit of Rs 147 m in FY16.

Over the past 3 years, VADILAL INDUSTRIES net profit has grown at a CAGR of 3.2%.

What does the cash flow statement of VADILAL INDUSTRIES reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of VADILAL INDUSTRIES reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 166 m as compared to Rs 455 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -240 m as compared to Rs -231 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs 61 m as compared to Rs -198 m in FY17.

Here's the cash flow statement of VADILAL INDUSTRIES for the past 3 years.

(Rs m)FY16FY17FY18
From Operations636455166
From Investments-113-231-240
From Financial Activity-529-19861
Net Cashflow-626-13

What does the Key Ratio analysis of VADILAL INDUSTRIES reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of VADILAL INDUSTRIES reveals:

  • Operating profit margins witnessed a fall and stood at 8.9% in FY18 as against 12.0% in FY17.
  • Net profit margins declined from 4.0% in FY17 to 2.9% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.4 as compared to 0.2 in FY17.

Here's the ratio/financial analysis of VADILAL INDUSTRIES for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)13.312.08.9
Net Profit Margin (%)3.44.02.9
Debt to Equity Ratio (x)0.40.20.4

Read: Latest Annual Report Analysis of VADILAL INDUSTRIES

 

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