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PRAJ IND.LTD 2017-18 Annual Report Analysis
Sat, 31 Mar

PRAJ IND.LTD 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.

PRAJ IND.LTD Income Statement Analysis

  • Operating income during the year rose 23.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 30.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.0% in FY18 as against 8.9% in FY17.
  • Depreciation charges increased by 8.9% and finance costs decreased by 12.7% YoY, respectively.
  • Other income grew by 35.7% YoY.
  • Net profit for the year declined by 11.5% YoY.
  • Net profit margins during the year declined from 5.8% in FY17 to 4.1% in FY18.

PRAJ IND.LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 7,719 9,568 23.9%
Other income Rs m 223 302 35.7%
Total Revenues Rs m 7,942 9,870 24.3%
Gross profit Rs m 687 480 -30.1%
Depreciation Rs m 221 241 8.9%
Interest Rs m 13 11 -12.7%
Profit before tax Rs m 675 530 -21.5%
Tax Rs m 229 135 -41.0%
Profit after tax Rs m 446 395 -11.5%
Gross profit margin % 8.9 5.0
Effective tax rate % 34.0 25.5
Net profit margin % 5.8 4.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

PRAJ IND.LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 4 billion as compared to Rs 5 billion in FY17, thereby witnessing an decrease of -15.4%.
  • Long-term debt down at Rs 0 million as compared to Rs 1 million during FY17, a fall of 50.0%.
  • Current assets fell 5% and stood at Rs 8 billion, while fixed assets fell 3% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 11 billion as against Rs 12 billion during FY17, thereby witnessing a fall of 5%.

PRAJ IND.LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 7,058 7,220 2.3
 
Current Liabilities Rs m 4,616 3,906 -15.4
Long-term Debt Rs m 1 0 -50.0
Total Liabilities Rs m 11,848 11,292 -4.7
 
Current assets Rs m 8,353 7,901 -5.4
Fixed Assets Rs m 3,495 3,391 -3.0
Total Assets Rs m 11,848 11,292 -4.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PRAJ IND.LTD Cash Flow Statement Analysis

  • PRAJ IND.LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion, an improvement of 402.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -707 million, an improvement of 779.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -247 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 80 million from the Rs 87 million net cash flows seen during FY17.

PRAJ IND.LTD 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 202 1,014 402.3%
Cash Flow from Investing Activities Rs m -80 -707 -
Cash Flow from Financing Activities Rs m -39 -247 -
Net Cash Flow Rs m 87 80 -7.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PRAJ IND.LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.2, an decline from the EPS of Rs 2.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 80.4, stands at 37.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 27.4 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 43.0 52.9
TTM Earnings per share Rs 2.5 2.2
Diluted earnings per share Rs 2.4 2.1
Price to Cash Flow x 22.0 27.4
TTM P/E ratio x 35.1 37.4
Price / Book Value ratio x 2.2 2.4
Market Cap Rs m 15,724 17,415
Dividends per share (Unadj.) Rs 1.6 1.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PRAJ IND.LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.0x during FY18, from 1.8x 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 47.4x during FY18, from 52.6x 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 5.5% during FY18, from 6.3% 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 7.5% during FY18, from 9.8% 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 3.6% during FY18, from 3.9% 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 1.8 2.0
Debtors’ Days Days 139 100
Interest coverage x 52.6 47.4
Debt to equity ratio x 0.0 0.0
Return on assets % 3.9 3.6
Return on equity % 6.3 5.5
Return on capital employed % 9.8 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how PRAJ IND.LTD has performed over the last 5 years, please visit here.

PRAJ IND.LTD Share Price Performance

Over the last one year, PRAJ IND.LTD share price has moved up from Rs 80.0 to Rs 80.4, registering a gain of Rs 0.4 or around 0.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

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

(To know more, check out historical annual results for PRAJ IND.LTD and quarterly results for PRAJ IND.LTD)

Annual Report FAQs

What is the current share price of PRAJ IND.LTD?

PRAJ IND.LTD currently trades at Rs 532.7 per share. You can check out the latest share price performance of PRAJ IND.LTD here...

What was the revenue of PRAJ IND.LTD in FY18? How does it compare to earlier years?

The revenues of PRAJ IND.LTD stood at Rs 9,870 m in FY18, which was up 24.3% compared to Rs 7,942 m reported in FY17.

PRAJ IND.LTD's revenue has fallen from Rs 10,570 m in FY16 to Rs 9,870 m in FY18.

Over the past 3 years, the revenue of PRAJ IND.LTD has grown at a CAGR of -3.4%.

What was the net profit of PRAJ IND.LTD in FY18? How does it compare to earlier years?

The net profit of PRAJ IND.LTD stood at Rs 395 m in FY18, which was down -11.5% compared to Rs 446 m reported in FY17.

This compares to a net profit of Rs 825 m in FY16.

Over the past 3 years, PRAJ IND.LTD net profit has grown at a CAGR of -30.8%.

What does the cash flow statement of PRAJ IND.LTD 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 PRAJ IND.LTD reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 1,014 m as compared to Rs 202 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -707 m as compared to Rs -80 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -247 m as compared to Rs -39 m in FY17.

Here's the cash flow statement of PRAJ IND.LTD for the past 3 years.

(Rs m)FY16FY17FY18
From Operations5112021,014
From Investments-14-80-707
From Financial Activity-678-39-247
Net Cashflow-1508780

What does the Key Ratio analysis of PRAJ IND.LTD 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 PRAJ IND.LTD reveals:

  • Operating profit margins witnessed a fall and stood at 5.0% in FY18 as against 8.9% in FY17.
  • Net profit margins declined from 5.8% in FY17 to 4.1% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.0 in FY17.

Here's the ratio/financial analysis of PRAJ IND.LTD for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)11.08.95.0
Net Profit Margin (%)7.95.84.1
Debt to Equity Ratio (x)0.00.00.0

Read: Latest Annual Report Analysis of PRAJ IND.LTD

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