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TITAN COMPANY 2017-18 Annual Report Analysis
Sat, 31 Mar

TITAN 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.

TITAN Income Statement Analysis

  • Operating income during the year rose 22.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 54.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.1% in FY18 as against 8.0% in FY17.
  • Depreciation charges increased by 18.9% and finance costs increased by 40.2% YoY, respectively.
  • Other income grew by 24.0% YoY.
  • Net profit for the year grew by 58.0% YoY.
  • Net profit margins during the year grew from 5.3% in FY17 to 6.9% in FY18.

TITAN Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 131,395 160,836 22.4%
Other income Rs m 717 889 24.0%
Total Revenues Rs m 132,112 161,725 22.4%
Gross profit Rs m 10,516 16,280 54.8%
Depreciation Rs m 1,105 1,314 18.9%
Interest Rs m 377 529 40.2%
Profit before tax Rs m 9,750 15,326 57.2%
Tax Rs m 2,760 4,279 55.0%
Profit after tax Rs m 6,991 11,047 58.0%
Gross profit margin % 8.0 10.1
Effective tax rate % 28.3 27.9
Net profit margin % 5.3 6.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Enclosed: Invitation to Access Our Latest Research Project

TITAN Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 43 billion as compared to Rs 40 billion in FY17, thereby witnessing an increase of 7.1%.
  • Current assets rose 13% and stood at Rs 76 billion, while fixed assets rose 13% and stood at Rs 19 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 95 billion as against Rs 84 billion during FY17, thereby witnessing a growth of 13%.

TITAN Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 42,330 50,872 20.2
 
Current Liabilities Rs m 40,278 43,154 7.1
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 84,043 94,882 12.9
 
Current assets Rs m 67,357 76,010 12.8
Fixed Assets Rs m 16,686 18,871 13.1
Total Assets Rs m 84,043 94,882 12.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TITAN Cash Flow Statement Analysis

  • TITAN's cash flow from operating activities (CFO) during FY18 stood at Rs -511 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 964 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -2 billion from the Rs 6 billion net cash flows seen during FY17.

TITAN 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 17,123 -511 -
Cash Flow from Investing Activities Rs m -9,844 964 -
Cash Flow from Financing Activities Rs m -1,656 -2,525 -
Net Cash Flow Rs m 5,623 -2,060 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TITAN

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.4, an improvement from the EPS of Rs 7.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 941.2, stands at 75.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 16.4 times, while the price to sales ratio stands at 5.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 51.0 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 148.0 181.2
TTM Earnings per share Rs 7.9 12.4
Diluted earnings per share Rs 7.9 12.4
Price to Cash Flow x 50.6 51.0
TTM P/E ratio x 53.5 75.0
Price / Book Value ratio x 8.4 12.4
Market Cap Rs m 357,073 630,160
Dividends per share (Unadj.) Rs 2.6 3.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TITAN

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.8x 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 30.0x during FY18, from 26.8x 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 21.7% 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 31.2% during FY18, from 23.9% 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 12.2% during FY18, from 8.8% 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 1.8
Debtors’ Days Days 58 67
Interest coverage x 26.8 30.0
Debt to equity ratio x 0.0 0.0
Return on assets % 8.8 12.2
Return on equity % 16.5 21.7
Return on capital employed % 23.9 31.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

TITAN Share Price Performance

Over the last one year, TITAN share price has moved up from Rs 461.3 to Rs 941.2, registering a gain of Rs 479.9 or around 104.0%.

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

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

Annual Report FAQs

What is the current share price of TITAN?

TITAN currently trades at Rs 2,470.0 per share. You can check out the latest share price performance of TITAN here...

What was the revenue of TITAN in FY18? How does it compare to earlier years?

The revenues of TITAN stood at Rs 161,725 m in FY18, which was up 22.4% compared to Rs 132,112 m reported in FY17.

TITAN's revenue has grown from Rs 110,060 m in FY14 to Rs 161,725 m in FY18.

Over the past 5 years, the revenue of TITAN has grown at a CAGR of 10.1%.

What was the net profit of TITAN in FY18? How does it compare to earlier years?

The net profit of TITAN stood at Rs 11,047 m in FY18, which was up 58.0% compared to Rs 6,991 m reported in FY17.

This compares to a net profit of Rs 6,765 m in FY16 and a net profit of Rs 8,163 m in FY15.

Over the past 5 years, TITAN net profit has grown at a CAGR of 10.7%.

What does the cash flow statement of TITAN reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of TITAN reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs -511 m as compared to Rs 17,123 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs 964 m as compared to Rs -9,844 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -2,525 m as compared to Rs -1,656 m in FY17.

Here's the cash flow statement of TITAN for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations-5,5475,0265,76117,123-511
From Investments-2,717-1,187-1,588-9,844964
From Financial Activity4,974-10,047-5,048-1,656-2,525
Net Cashflow-3,290-6,207-8765,623-2,060

What does the Key Ratio analysis of TITAN reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of TITAN reveals:

  • Operating profit margins witnessed a fall and down at 10.1% in FY18 as against 8.0% in FY17.
  • Net profit margins grew from 5.3% in FY17 to 6.9% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.0 in FY17.

Here's the ratio/financial analysis of TITAN for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)9.69.78.18.010.1
Net Profit Margin (%)6.76.96.05.36.9
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of TITAN

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