VOLTAMP TRANSFORMERS 2017-18 Annual Report Analysis

Sat, 31 Mar

VOLTAMP TRANSFORMERS 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.

VOLTAMP TRANSFORMERS Income Statement Analysis

• Operating income during the year rose 13.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.8% in FY18 as against 10.9% in FY17.
• Depreciation charges increased by 3.1% and finance costs increased by 8.8% YoY, respectively.
• Other income grew by 1.0% YoY.
• Net profit for the year grew by 1.8% YoY.
• Net profit margins during the year declined from 13.0% in FY17 to 11.7% in FY18.

VOLTAMP TRANSFORMERS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	5,541	6,262	13.0%
Other income	Rs m	390	394	1.0%
Total Revenues	Rs m	5,930	6,655	12.2%
Gross profit	Rs m	602	673	11.9%
Depreciation	Rs m	58	60	3.1%
Interest	Rs m	5	6	8.8%
Profit before tax	Rs m	928	1,001	7.9%
Tax	Rs m	206	267	29.3%
Profit after tax	Rs m	722	735	1.8%
Gross profit margin	%	10.9	10.8
Effective tax rate	%	22.2	26.6
Net profit margin	%	13.0	11.7

VOLTAMP TRANSFORMERS Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 437 million as compared to Rs 430 million in FY17, thereby witnessing an increase of 1.6%.
• Current assets rose 9% and stood at Rs 3 billion, while fixed assets rose 10% and stood at Rs 4 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 7 billion as against Rs 6 billion during FY17, thereby witnessing a growth of 9%.

VOLTAMP TRANSFORMERS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	5,650	6,201	9.8
Current Liabilities	Rs m	430	437	1.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,127	6,700	9.3
Current assets	Rs m	2,658	2,891	8.8
Fixed Assets	Rs m	3,469	3,808	9.8
Total Assets	Rs m	6,127	6,700	9.3

VOLTAMP TRANSFORMERS Cash Flow Statement Analysis

• VOLTAMP TRANSFORMERS's cash flow from operating activities (CFO) during FY18 stood at Rs 425 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -202 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -182 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 41 million from the Rs 24 million net cash flows seen during FY17.

VOLTAMP TRANSFORMERS 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	781	425	-45.5%
Cash Flow from Investing Activities	Rs m	-600	-202	-
Cash Flow from Financing Activities	Rs m	-158	-182	-
Net Cash Flow	Rs m	24	41	73.9%

Current Valuations for VOLTAMP TRANSFORMERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 72.6, an improvement from the EPS of Rs 71.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,063.9, stands at 14.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 14.8 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	547.5	618.7
TTM Earnings per share	Rs	71.4	72.6
Diluted earnings per share	Rs	71.4	72.6
Price to Cash Flow	x	13.6	14.8
TTM P/E ratio	x	15.6	14.6
Price / Book Value ratio	x	1.6	1.9
Market Cap	Rs m	9,104	11,730
Dividends per share (Unadj.)	Rs	15.0	15.0

Ratio Analysis for VOLTAMP TRANSFORMERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.6x during FY18, from 6.2x 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 180.8x during FY18, from 182.3x 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 11.8% during FY18, from 12.8% 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 16.2% during FY18, from 16.5% 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 11.1% during FY18, from 11.9% 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	6.2	6.6
Debtors’ Days	Days	1,013	842
Interest coverage	x	182.3	180.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.9	11.1
Return on equity	%	12.8	11.8
Return on capital employed	%	16.5	16.2

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

VOLTAMP TRANSFORMERS Share Price Performance

Over the last one year, VOLTAMP TRANSFORMERS share price has moved up from Rs 1,051.4 to Rs 1,063.9, registering a gain of Rs 12.5 or around 1.2%.

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 VOLTAMP TRANSFORMERS and quarterly results for VOLTAMP TRANSFORMERS)

Read: Latest Annual Report Analysis of VOLTAMP TRANSFORMERS