MADHUCON PROJECTS 2017-18 Annual Report Analysis

Sat, 31 Mar

MADHUCON PROJECTS 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.

MADHUCON PROJECTS Income Statement Analysis

• Operating income during the year fell 34.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 93.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.5% in FY18 as against 23.1% in FY17.
• Depreciation charges decreased by 7.6% and finance costs increased by 11.2% YoY, respectively.
• Other income grew by 89.9% YoY.
• Net profit for the year grew by 50.0% YoY.
• Net profit margins during the year declined from 40.9% in FY17 to 93.3% in FY18.

MADHUCON PROJECTS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	15,764	10,355	-34.3%
Other income	Rs m	254	482	89.9%
Total Revenues	Rs m	16,018	10,837	-32.3%
Gross profit	Rs m	3,645	255	-93.0%
Depreciation	Rs m	2,692	2,488	-7.6%
Interest	Rs m	7,509	8,348	11.2%
Profit before tax	Rs m	-6,302	-10,098	60.2%
Tax	Rs m	139	-437	-413.2%
Profit after tax	Rs m	-6,442	-9,661	50.0%
Gross profit margin	%	23.1	2.5
Effective tax rate	%	-2.2	4.3
Net profit margin	%	-40.9	-93.3

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MADHUCON PROJECTS Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 49 billion as compared to Rs 39 billion in FY17, thereby witnessing an increase of 23.8%.
• Long-term debt down at Rs 45 billion as compared to Rs 48 billion during FY17, a fall of 5.2%.
• Current assets fell 23% and stood at Rs 7 billion, while fixed assets fell 2% and stood at Rs 72 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 79 billion as against Rs 82 billion during FY17, thereby witnessing a fall of 4%.

MADHUCON PROJECTS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	-8,219	-17,676	115.1
Current Liabilities	Rs m	39,274	48,626	23.8
Long-term Debt	Rs m	47,640	45,164	-5.2
Total Liabilities	Rs m	82,294	78,690	-4.4
Current assets	Rs m	8,688	6,698	-22.9
Fixed Assets	Rs m	73,606	71,991	-2.2
Total Assets	Rs m	82,294	78,690	-4.4

MADHUCON PROJECTS Cash Flow Statement Analysis

• MADHUCON PROJECTS's cash flow from operating activities (CFO) during FY18 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -19 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -6 billion, an improvement of 31% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -195 million from the Rs -679 million net cash flows seen during FY17.

MADHUCON PROJECTS 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	6,834	5,708	-16.5%
Cash Flow from Investing Activities	Rs m	1,072	-19	-
Cash Flow from Financing Activities	Rs m	-8,586	-5,884	-
Net Cash Flow	Rs m	-679	-195	-

Current Valuations for MADHUCON PROJECTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -130.9, an decline from the EPS of Rs -87.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 19.0, stands at 11.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.1 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at -0.4 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	213.6	140.3
TTM Earnings per share	Rs	-87.3	-130.9
Diluted earnings per share	Rs	-87.3	-130.9
Price to Cash Flow	x	-0.8	-0.4
TTM P/E ratio	x	10.5	11.8
Price / Book Value ratio	x	-0.4	-0.2
Market Cap	Rs m	3,350	3,107
Dividends per share (Unadj.)	Rs	0.1	0.0

Ratio Analysis for MADHUCON PROJECTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.1x during FY18, from 0.2x 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 -0.2x during FY18, from 0.2x 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 declined and down at 54.7% during FY18, from 78.4% 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 -6.4% during FY18, from 3.1% 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 -1.7% during FY18, from 1.3% 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	0.2	0.1
Debtors’ Days	Days	487	110
Interest coverage	x	0.2	-0.2
Debt to equity ratio	x	-5.8	-2.6
Return on assets	%	1.3	-1.7
Return on equity	%	78.4	54.7
Return on capital employed	%	3.1	-6.4

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

MADHUCON PROJECTS Share Price Performance

Over the last one year, MADHUCON PROJECTS share price has moved down from Rs 42.7 to Rs 19.0, registering a loss of Rs 23.7 or around 55.6%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,229.9 (down 1.1%). Over the last one year it has moved up from 1,600.0 to 2,229.9, a gain of 630 points (up 39.4%).

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

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