VST TILLERS 2017-18 Annual Report Analysis

Sat, 31 Mar

VST TILLERS 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.

VST TILLERS Income Statement Analysis

• Operating income during the year rose 13.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.7% in FY18 as against 15.5% in FY17.
• Depreciation charges decreased by 8.1% and finance costs decreased by 40.5% YoY, respectively.
• Other income grew by 72.8% YoY.
• Net profit for the year grew by 35.4% YoY.
• Net profit margins during the year grew from 12.3% in FY17 to 14.7% in FY18.

VST TILLERS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	6,730	7,630	13.4%
Other income	Rs m	262	452	72.8%
Total Revenues	Rs m	6,992	8,082	15.6%
Gross profit	Rs m	1,047	1,197	14.4%
Depreciation	Rs m	118	109	-8.1%
Interest	Rs m	31	19	-40.5%
Profit before tax	Rs m	1,159	1,522	31.4%
Tax	Rs m	332	403	21.3%
Profit after tax	Rs m	827	1,120	35.4%
Gross profit margin	%	15.5	15.7
Effective tax rate	%	28.6	26.4
Net profit margin	%	12.3	14.7

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VST TILLERS Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 1 billion as compared to Rs 833 million in FY17, thereby witnessing an increase of 72.3%.
• Current assets rose 18% and stood at Rs 5 billion, while fixed assets rose 39% and stood at Rs 3 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 8 billion as against Rs 6 billion during FY17, thereby witnessing a growth of 25%.

VST TILLERS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	5,000	5,964	19.3
Current Liabilities	Rs m	833	1,435	72.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,311	7,858	24.5
Current assets	Rs m	4,246	4,994	17.6
Fixed Assets	Rs m	2,065	2,864	38.7
Total Assets	Rs m	6,311	7,858	24.5

VST TILLERS Cash Flow Statement Analysis

• VST TILLERS's cash flow from operating activities (CFO) during FY18 stood at Rs 334 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -360 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -167 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -193 million from the Rs 90 million net cash flows seen during FY17.

VST TILLERS 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	865	334	-61.4%
Cash Flow from Investing Activities	Rs m	-745	-360	-
Cash Flow from Financing Activities	Rs m	-30	-167	-
Net Cash Flow	Rs m	90	-193	-

Current Valuations for VST TILLERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 129.6, an improvement from the EPS of Rs 95.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,511.8, stands at 19.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 16.1 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	779.0	883.1
TTM Earnings per share	Rs	95.7	129.6
Diluted earnings per share	Rs	95.7	129.6
Price to Cash Flow	x	16.5	16.1
TTM P/E ratio	x	22.7	19.4
Price / Book Value ratio	x	3.0	3.3
Market Cap	Rs m	15,203	19,834
Dividends per share (Unadj.)	Rs	15.0	50.0

Ratio Analysis for VST TILLERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.5x during FY18, from 5.1x 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 83.2x during FY18, from 38.2x 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 18.8% during FY18, from 16.5% 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 25.8% during FY18, from 23.8% 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 improved and stood at 14.5% during FY18, from 13.6% 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	5.1	3.5
Debtors’ Days	Days	71,737,477	89,029,362
Interest coverage	x	38.2	83.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.6	14.5
Return on equity	%	16.5	18.8
Return on capital employed	%	23.8	25.8

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

VST TILLERS Share Price Performance

Over the last one year, VST TILLERS share price has moved up from Rs 1,800.0 to Rs 2,511.8, registering a gain of Rs 711.8 or around 39.5%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 24,057.3 (down 0.1%). Over the last one year it has moved up from 22,012.7 to 24,057.3, a gain of 2,045 points (up 9.3%).

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

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

Read: Latest Annual Report Analysis of VST TILLERS