SASKEN TECHNOLOGIES 2017-18 Annual Report Analysis

Sat, 31 Mar

SASKEN TECHNOLOGIES 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.

SASKEN TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 7.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.5% in FY18 as against 15.0% in FY17.
• Depreciation charges decreased by 5.9% increased by 0.0% YoY, respectively.
• Other income grew by 16.3% YoY.
• Net profit for the year declined by 2.7% YoY.
• Net profit margins during the year declined from 18.1% in FY17 to 16.4% in FY18.

SASKEN TECHNOLOGIES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	4,673	5,030	7.7%
Other income	Rs m	328	381	16.3%
Total Revenues	Rs m	5,000	5,411	8.2%
Gross profit	Rs m	702	678	-3.5%
Depreciation	Rs m	66	62	-5.9%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	964	997	3.4%
Tax	Rs m	117	172	47.4%
Profit after tax	Rs m	847	824	-2.7%
Gross profit margin	%	15.0	13.5
Effective tax rate	%	12.1	17.3
Net profit margin	%	18.1	16.4

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SASKEN TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 1 billion as compared to Rs 937 million in FY17, thereby witnessing an increase of 11.6%.
• Current assets rose 1% and stood at Rs 2 billion, while fixed assets rose 14% and stood at Rs 5 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 7 billion as against Rs 7 billion during FY17, thereby witnessing a growth of 10%.

SASKEN TECHNOLOGIES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	5,615	6,210	10.6
Current Liabilities	Rs m	937	1,047	11.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,595	7,265	10.2
Current assets	Rs m	1,763	1,775	0.7
Fixed Assets	Rs m	4,832	5,489	13.6
Total Assets	Rs m	6,595	7,265	10.2

SASKEN TECHNOLOGIES Cash Flow Statement Analysis

• SASKEN TECHNOLOGIES's cash flow from operating activities (CFO) during FY18 stood at Rs 790 million, an improvement of 184.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -563 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -182 million, an improvement of 41% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 63 million from the Rs 152 million net cash flows seen during FY17.

SASKEN TECHNOLOGIES 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	278	790	184.3%
Cash Flow from Investing Activities	Rs m	191	-563	-
Cash Flow from Financing Activities	Rs m	-309	-182	-
Net Cash Flow	Rs m	152	63	-58.3%

Current Valuations for SASKEN TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.2, an decline from the EPS of Rs 49.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 698.0, stands at 12.7 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 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 11.5 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	273.1	294.0
TTM Earnings per share	Rs	49.5	48.2
Diluted earnings per share	Rs	56.3	54.8
Price to Cash Flow	x	6.3	11.5
TTM P/E ratio	x	7.4	12.7
Price / Book Value ratio	x	1.1	1.6
Market Cap	Rs m	6,445	10,184
Dividends per share (Unadj.)	Rs	7.0	10.0

Ratio Analysis for SASKEN TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY18, from 1.9x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 13.3% during FY18, from 15.1% 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 declined and down at 16.0% during FY18, from 17.2% 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 11.3% during FY18, from 12.8% 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	1.9	1.7
Debtors’ Days	Days	607	571
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.8	11.3
Return on equity	%	15.1	13.3
Return on capital employed	%	17.2	16.0

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

SASKEN TECHNOLOGIES Share Price Performance

Over the last one year, SASKEN TECHNOLOGIES share price has moved up from Rs 379.2 to Rs 698.0, registering a gain of Rs 318.9 or around 84.1%.

Meanwhile, the S&P BSE IT Index is trading at Rs 12,100.6 (down 0.3%). Over the last one year it has moved up from 10,365.5 to 12,100.6, a gain of 1,735 points (up 16.7%).

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

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

Read: Latest Annual Report Analysis of SASKEN TECHNOLOGIES