DISA INDIA 2017-18 Annual Report Analysis

Sat, 31 Mar

DISA INDIA 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.

DISA INDIA Income Statement Analysis

• Operating income during the year rose 35.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 52.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.6% in FY18 as against 10.3% in FY17.
• Depreciation charges decreased by 1.4% and finance costs decreased by 50.0% YoY, respectively.
• Other income declined by 7.3% YoY.
• Net profit for the year grew by 47.5% YoY.
• Net profit margins during the year grew from 7.6% in FY17 to 8.3% in FY18.

DISA INDIA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	1,484	2,014	35.7%
Other income	Rs m	53	49	-7.3%
Total Revenues	Rs m	1,537	2,063	34.2%
Gross profit	Rs m	152	233	52.8%
Depreciation	Rs m	22	22	-1.4%
Interest	Rs m	3	1	-50.0%
Profit before tax	Rs m	181	259	43.1%
Tax	Rs m	68	93	36.0%
Profit after tax	Rs m	113	167	47.5%
Gross profit margin	%	10.3	11.6
Effective tax rate	%	37.6	35.7
Net profit margin	%	7.6	8.3

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DISA INDIA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 2 billion as compared to Rs 1 billion in FY17, thereby witnessing an increase of 97.0%.
• Current assets rose 66% and stood at Rs 3 billion, while fixed assets rose 7% and stood at Rs 264 million in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 3 billion as against Rs 2 billion during FY17, thereby witnessing a growth of 59%.

DISA INDIA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	928	1,092	17.6
Current Liabilities	Rs m	1,042	2,052	97.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,977	3,141	58.9
Current assets	Rs m	1,730	2,878	66.3
Fixed Assets	Rs m	246	264	7.1
Total Assets	Rs m	1,977	3,141	58.9

DISA INDIA Cash Flow Statement Analysis

• DISA INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 243 million, an improvement of 93.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -197 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -6 million, an improvement of 98% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 40 million from the Rs -5 million net cash flows seen during FY17.

DISA INDIA 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	126	243	93.5%
Cash Flow from Investing Activities	Rs m	145	-197	-
Cash Flow from Financing Activities	Rs m	-276	-6	-
Net Cash Flow	Rs m	-5	40	-

Current Valuations for DISA INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 114.8, an improvement from the EPS of Rs 77.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,002.0, stands at 53.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.0 times, while the price to sales ratio stands at 4.3 times.
• The company's price to cash flow (P/CF) ratio stood at 46.8 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	1,023.2	1,388.8
TTM Earnings per share	Rs	77.9	114.8
Diluted earnings per share	Rs	77.6	114.5
Price to Cash Flow	x	53.9	46.8
TTM P/E ratio	x	63.8	53.8
Price / Book Value ratio	x	6.9	8.1
Market Cap	Rs m	6,435	8,806
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for DISA INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY18, from 1.7x 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 improved and stood at 200.3x during FY18, from 70.6x 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 improved and stood at 15.3% during FY18, from 12.2% 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 improved and stood at 23.9% during FY18, from 19.8% 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 5.3% during FY18, from 5.8% 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	1.7	1.4
Debtors’ Days	Days	24	26
Interest coverage	x	70.6	200.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.8	5.3
Return on equity	%	12.2	15.3
Return on capital employed	%	19.8	23.9

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

DISA INDIA Share Price Performance

Over the last one year, DISA INDIA share price has moved up from Rs 4,999.5 to Rs 6,002.0, registering a gain of Rs 1,002.5 or around 20.1%.

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 DISA INDIA and quarterly results for DISA INDIA)

Read: Latest Annual Report Analysis of DISA INDIA