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BAJAJ HIND. SUGAR 2017-18 Annual Report Analysis

Sat, 31 Mar

BAJAJ HIND. SUGAR 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.

BAJAJ HIND. SUGAR Income Statement Analysis

• Operating income during the year rose 38.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 68.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.7% in FY18 as against 20.4% in FY17.
• Depreciation charges decreased by 18.8% and finance costs decreased by 15.2% YoY, respectively.
• Other income grew by 4.8% YoY.
• Net profit for the year grew by 443.2% YoY.
• Net profit margins during the year declined from 2.2% in FY17 to 8.7% in FY18.

BAJAJ HIND. SUGAR Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	41,653	57,507	38.1%
Other income	Rs m	964	1,010	4.8%
Total Revenues	Rs m	42,617	58,517	37.3%
Gross profit	Rs m	8,511	2,721	-68.0%
Depreciation	Rs m	2,432	1,975	-18.8%
Interest	Rs m	8,021	6,802	-15.2%
Profit before tax	Rs m	-977	-5,045	416.3%
Tax	Rs m	-57	-49	-14.8%
Profit after tax	Rs m	-920	-4,996	443.2%
Gross profit margin	%	20.4	4.7
Effective tax rate	%	5.9	1.0
Net profit margin	%	-2.2	-8.7

For Investors: Our Big Prediction

BAJAJ HIND. SUGAR Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 45 billion as compared to Rs 47 billion in FY17, thereby witnessing an decrease of -3.6%.
• Long-term debt stood at Rs 59 billion as compared to Rs 55 billion during FY17, a growth of 7.9%.
• Current assets fell 1% and stood at Rs 52 billion, while fixed assets fell 2% and stood at Rs 88 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 141 billion as against Rs 143 billion during FY17, thereby witnessing a fall of 2%.

BAJAJ HIND. SUGAR Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	34,656	29,420	-15.1
Current Liabilities	Rs m	47,128	45,440	-3.6
Long-term Debt	Rs m	54,598	58,924	7.9
Total Liabilities	Rs m	143,369	140,742	-1.8
Current assets	Rs m	52,688	52,305	-0.7
Fixed Assets	Rs m	90,681	88,437	-2.5
Total Assets	Rs m	143,369	140,742	-1.8

BAJAJ HIND. SUGAR Cash Flow Statement Analysis

• BAJAJ HIND. SUGAR's cash flow from operating activities (CFO) during FY18 stood at Rs 10 billion, an improvement of 36.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -287 million, an improvement of 112.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -9 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 63 million from the Rs -204 million net cash flows seen during FY17.

BAJAJ HIND. SUGAR 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	6,999	9,532	36.2%
Cash Flow from Investing Activities	Rs m	-135	-287	-
Cash Flow from Financing Activities	Rs m	-7,068	-9,182	-
Net Cash Flow	Rs m	-204	63	-

Current Valuations for BAJAJ HIND. SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.5, an decline from the EPS of Rs -0.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8.8, stands at -2.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at -5.0 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	37.8	52.2
TTM Earnings per share	Rs	-0.8	-4.5
Diluted earnings per share	Rs	-0.7	-3.9
Price to Cash Flow	x	11.3	-5.0
TTM P/E ratio	x	230.0	-2.7
Price / Book Value ratio	x	0.6	0.5
Market Cap	Rs m	20,418	15,079
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BAJAJ HIND. SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY18, from 1.1x 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 deteriorated and stood at 0.3x during FY18, from 0.9x 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 -17.0% during FY18, from -2.7% 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 2.0% during FY18, from 7.9% 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 declined and down at 1.3% during FY18, from 5.0% 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	1.1	1.2
Debtors’ Days	Days	1	1
Interest coverage	x	0.9	0.3
Debt to equity ratio	x	1.6	2.0
Return on assets	%	5.0	1.3
Return on equity	%	-2.7	-17.0
Return on capital employed	%	7.9	2.0

To see how BAJAJ HIND. SUGAR has performed over the last 5 years, please visit here.

BAJAJ HIND. SUGAR Share Price Performance

Over the last one year, BAJAJ HIND. SUGAR share price has moved down from Rs 13.3 to Rs 8.8, registering a loss of Rs 4.5 or around 33.8%.

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

(To know more, check out historical annual results for BAJAJ HIND. SUGAR and quarterly results for BAJAJ HIND. SUGAR)

Read: Latest Annual Report Analysis of BAJAJ HIND. SUGAR