AUSTIN ENGG. 2017-18 Annual Report Analysis

Sat, 31 Mar

AUSTIN ENGG. 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.

AUSTIN ENGG. Income Statement Analysis

• Operating income during the year rose 11.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 74.7% YoY during the fiscal. Operating profit margins witnessed a growth and down at 0.5% in FY18 as against 2.4% in FY17.
• Depreciation charges decreased by 2.7% and finance costs decreased by 36.1% YoY, respectively.
• Other income grew by 113.3% YoY.
• Net profit for the year declined by 60.1% YoY.
• Net profit margins during the year grew from 4.4% in FY17 to 1.6% in FY18.

AUSTIN ENGG. Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	685	764	11.5%
Other income	Rs m	6	12	113.3%
Total Revenues	Rs m	690	776	12.3%
Gross profit	Rs m	-16	-4	-74.7%
Depreciation	Rs m	12	11	-2.7%
Interest	Rs m	11	7	-36.1%
Profit before tax	Rs m	-33	-10	-69.1%
Tax	Rs m	-3	2	-154.8%
Profit after tax	Rs m	-30	-12	-60.1%
Gross profit margin	%	-2.4	-0.5
Effective tax rate	%	9.5	-16.9
Net profit margin	%	-4.4	-1.6

Dear Reader: If You Invest in Midcap Stocks, this is for You

AUSTIN ENGG. Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 298 million as compared to Rs 303 million in FY17, thereby witnessing an decrease of -1.6%.
• Current assets rose 0% and stood at Rs 742 million, while fixed assets fell 5% and stood at Rs 119 million in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 861 million as against Rs 867 million during FY17, thereby witnessing a fall of 1%.

AUSTIN ENGG. Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	533	520	-2.4
Current Liabilities	Rs m	303	298	-1.6
Long-term Debt	Rs m	1	0	-100.0
Total Liabilities	Rs m	867	861	-0.7
Current assets	Rs m	742	742	0.0
Fixed Assets	Rs m	126	119	-5.1
Total Assets	Rs m	867	861	-0.7

AUSTIN ENGG. Cash Flow Statement Analysis

• AUSTIN ENGG.'s cash flow from operating activities (CFO) during FY18 stood at Rs 39 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -1 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -25 million, an improvement of 11% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 13 million from the Rs 13 million net cash flows seen during FY17.

AUSTIN ENGG. 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	42	39	-8.6%
Cash Flow from Investing Activities	Rs m	-2	-1	-
Cash Flow from Financing Activities	Rs m	-28	-25	-
Net Cash Flow	Rs m	13	13	-1.9%

Current Valuations for AUSTIN ENGG.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.4, an improvement from the EPS of Rs -8.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 73.0, stands at -20.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at -573.1 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	196.8	219.4
TTM Earnings per share	Rs	-8.6	-3.4
Diluted earnings per share	Rs	-8.6	-3.4
Price to Cash Flow	x	-10.7	-573.1
TTM P/E ratio	x	-6.5	-20.4
Price / Book Value ratio	x	0.4	0.7
Market Cap	Rs m	207	347
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AUSTIN ENGG.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY18, from 2.5x 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 -0.5x during FY18, from -2.1x 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 -2.3% during FY18, from -5.6% 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 -0.7% during FY18, from -4.2% 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 improved and stood at -0.6% during FY18, from -2.2% 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	2.5	2.5
Debtors’ Days	Days	105,184,215	89,689,387
Interest coverage	x	-2.1	-0.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-2.2	-0.6
Return on equity	%	-5.6	-2.3
Return on capital employed	%	-4.2	-0.7

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

AUSTIN ENGG. Share Price Performance

Over the last one year, AUSTIN ENGG. share price has moved up from Rs 56.0 to Rs 73.0, registering a gain of Rs 17.0 or around 30.4%.

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

(To know more, check out historical annual results for AUSTIN ENGG. and quarterly results for AUSTIN ENGG.)