BAYER CROPSCIENCE 2017-18 Annual Report Analysis

Sat, 31 Mar

BAYER CROPSCIENCE 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.

BAYER CROPSCIENCE Income Statement Analysis

• Operating income during the year rose 0.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.3% in FY18 as against 15.5% in FY17.
• Depreciation charges increased by 14.5% and finance costs increased by 63.8% YoY, respectively.
• Other income declined by 45.3% YoY.
• Net profit for the year grew by 3.1% YoY.
• Net profit margins during the year grew from 11.0% in FY17 to 11.2% in FY18.

BAYER CROPSCIENCE Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	26,572	26,708	0.5%
Other income	Rs m	716	392	-45.3%
Total Revenues	Rs m	27,288	27,100	-0.7%
Gross profit	Rs m	4,121	4,090	-0.8%
Depreciation	Rs m	289	331	14.5%
Interest	Rs m	69	113	63.8%
Profit before tax	Rs m	4,479	4,038	-9.8%
Tax	Rs m	1,569	1,037	-33.9%
Profit after tax	Rs m	2,910	3,001	3.1%
Gross profit margin	%	15.5	15.3
Effective tax rate	%	35.0	25.7
Net profit margin	%	11.0	11.2

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BAYER CROPSCIENCE Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 9 billion as compared to Rs 8 billion in FY17, thereby witnessing an increase of 14.5%.
• Current assets fell 6% and stood at Rs 24 billion, while fixed assets fell 2% and stood at Rs 19 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 42 billion as against Rs 44 billion during FY17, thereby witnessing a fall of 4%.

BAYER CROPSCIENCE Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	20,567	17,783	-13.5
Current Liabilities	Rs m	8,293	9,498	14.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	44,253	42,300	-4.4
Current assets	Rs m	25,204	23,640	-6.2
Fixed Assets	Rs m	19,049	18,660	-2.0
Total Assets	Rs m	44,253	42,300	-4.4

BAYER CROPSCIENCE Cash Flow Statement Analysis

• BAYER CROPSCIENCE's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 383 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -4 billion from the Rs 756 million net cash flows seen during FY17.

BAYER CROPSCIENCE 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	1,573	1,214	-22.8%
Cash Flow from Investing Activities	Rs m	-84	383	-
Cash Flow from Financing Activities	Rs m	-733	-5,811	-
Net Cash Flow	Rs m	756	-4,214	-

Current Valuations for BAYER CROPSCIENCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 87.4, an improvement from the EPS of Rs 82.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,203.0, stands at 62.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.6 times, while the price to sales ratio stands at 5.4 times.
• The company's price to cash flow (P/CF) ratio stood at 45.0 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	751.7	778.0
TTM Earnings per share	Rs	82.3	87.4
Diluted earnings per share	Rs	64.7	66.8
Price to Cash Flow	x	53.3	45.0
TTM P/E ratio	x	58.6	62.9
Price / Book Value ratio	x	7.1	8.4
Market Cap	Rs m	145,782	149,952
Dividends per share (Unadj.)	Rs	17.0	18.0

Ratio Analysis for BAYER CROPSCIENCE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.5x during FY18, from 3.0x 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 36.7x during FY18, from 65.9x 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 16.9% during FY18, from 14.1% 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 23.3% during FY18, from 22.1% 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 improved and stood at 7.4% during FY18, from 6.7% 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	3.0	2.5
Debtors’ Days	Days	76	90
Interest coverage	x	65.9	36.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.7	7.4
Return on equity	%	14.1	16.9
Return on capital employed	%	22.1	23.3

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

BAYER CROPSCIENCE Share Price Performance

Over the last one year, BAYER CROPSCIENCE share price has moved up from Rs 3,794.1 to Rs 4,203.0, registering a gain of Rs 409.0 or around 10.8%.

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

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

Read: Latest Annual Report Analysis of BAYER CROPSCIENCE