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KRBL LIMITED 2017-18 Annual Report Analysis
Sat, 31 Mar

KRBL 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.

KRBL Income Statement Analysis

  • Operating income during the year rose 3.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 20.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.9% in FY18 as against 20.4% in FY17.
  • Depreciation charges increased by 10.4% and finance costs increased by 25.7% YoY, respectively.
  • Other income grew by 73.2% YoY.
  • Net profit for the year grew by 8.8% YoY.
  • Net profit margins during the year grew from 12.7% in FY17 to 13.4% in FY18.

KRBL Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 31,476 32,449 3.1%
Other income Rs m 103 178 73.2%
Total Revenues Rs m 31,579 32,627 3.3%
Gross profit Rs m 6,435 7,739 20.3%
Depreciation Rs m 614 678 10.4%
Interest Rs m 548 690 25.7%
Profit before tax Rs m 5,376 6,550 21.8%
Tax Rs m 1,382 2,206 59.6%
Profit after tax Rs m 3,994 4,344 8.8%
Gross profit margin % 20.4 23.9
Effective tax rate % 25.7 33.7
Net profit margin % 12.7 13.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

KRBL Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 14 billion as compared to Rs 13 billion in FY17, thereby witnessing an increase of 5.5%.
  • Long-term debt down at Rs 520 million as compared to Rs 873 million during FY17, a fall of 40.5%.
  • Current assets rose 20% and stood at Rs 28 billion, while fixed assets fell 4% and stood at Rs 10 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 39 billion as against Rs 34 billion during FY17, thereby witnessing a growth of 13%.

KRBL Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 19,073 22,879 20.0
 
Current Liabilities Rs m 13,081 13,797 5.5
Long-term Debt Rs m 873 520 -40.5
Total Liabilities Rs m 34,222 38,575 12.7
 
Current assets Rs m 23,531 28,339 20.4
Fixed Assets Rs m 10,692 10,237 -4.3
Total Assets Rs m 34,222 38,575 12.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



KRBL Cash Flow Statement Analysis

  • KRBL's cash flow from operating activities (CFO) during FY18 stood at Rs 608 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -487 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 247 million, an improvement of 133% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 368 million from the Rs -233 million net cash flows seen during FY17.

KRBL 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 2,583 608 -76.5%
Cash Flow from Investing Activities Rs m -2,079 -487 -
Cash Flow from Financing Activities Rs m -737 247 -
Net Cash Flow Rs m -233 368 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for KRBL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.5, an improvement from the EPS of Rs 17.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 434.8, stands at 23.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 3.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 24.5 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 133.7 137.9
TTM Earnings per share Rs 17.0 18.5
Diluted earnings per share Rs 17.0 18.5
Price to Cash Flow x 21.0 24.5
TTM P/E ratio x 24.1 23.6
Price / Book Value ratio x 3.9 5.4
Market Cap Rs m 73,795 122,874
Dividends per share (Unadj.) Rs 2.1 2.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for KRBL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.1x 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 10.5x during FY18, from 10.8x 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 19.0% during FY18, from 20.9% 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 improved and stood at 30.9% during FY18, from 29.7% 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 13.0% during FY18, from 13.3% 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 2.1
Debtors’ Days Days 267 277
Interest coverage x 10.8 10.5
Debt to equity ratio x 0.0 0.0
Return on assets % 13.3 13.0
Return on equity % 20.9 19.0
Return on capital employed % 29.7 30.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

KRBL Share Price Performance

Over the last one year, KRBL share price has moved up from Rs 412.1 to Rs 434.8, registering a gain of Rs 22.7 or around 5.5%.

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

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

Annual Report FAQs

What is the current share price of KRBL?

KRBL currently trades at Rs 277.5 per share. You can check out the latest share price performance of KRBL here...

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

The revenues of KRBL stood at Rs 32,627 m in FY18, which was up 3.3% compared to Rs 31,579 m reported in FY17.

KRBL's revenue has fallen from Rs 34,240 m in FY16 to Rs 32,627 m in FY18.

Over the past 3 years, the revenue of KRBL has grown at a CAGR of -2.4%.

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

The net profit of KRBL stood at Rs 4,344 m in FY18, which was up 8.8% compared to Rs 3,994 m reported in FY17.

This compares to a net profit of Rs 2,931 m in FY16.

Over the past 3 years, KRBL net profit has grown at a CAGR of 21.7%.

What does the cash flow statement of KRBL 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 KRBL reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 608 m as compared to Rs 2,583 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -487 m as compared to Rs -2,079 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs 247 m as compared to Rs -737 m in FY17.

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

(Rs m)FY16FY17FY18
From Operations5,1032,583608
From Investments-1,739-2,079-487
From Financial Activity-3,324-737247
Net Cashflow40-233368

What does the Key Ratio analysis of KRBL 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 KRBL reveals:

  • Operating profit margins witnessed a fall and down at 23.9% in FY18 as against 20.4% in FY17.
  • Net profit margins grew from 12.7% in FY17 to 13.4% 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 KRBL for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)13.320.423.9
Net Profit Margin (%)8.712.713.4
Debt to Equity Ratio (x)0.10.00.0

Read: Latest Annual Report Analysis of KRBL

 

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