OPTO CIRCUITS 2017-18 Annual Report Analysis

Sat, 31 Mar

OPTO CIRCUITS 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.

OPTO CIRCUITS Income Statement Analysis

• Operating income during the year rose 6.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 111.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.5% in FY18 as against 220.7% in FY17.
• Depreciation charges decreased by 21.5% and finance costs decreased by 66.3% YoY, respectively.
• Other income grew by 73.8% YoY.
• Net profit for the year declined by 107.0% YoY.
• Net profit margins during the year grew from 236.1% in FY17 to 15.6% in FY18.

OPTO CIRCUITS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	2,153	2,284	6.1%
Other income	Rs m	7	12	73.8%
Total Revenues	Rs m	2,160	2,296	6.3%
Gross profit	Rs m	-4,751	536	-111.3%
Depreciation	Rs m	160	126	-21.5%
Interest	Rs m	171	58	-66.3%
Profit before tax	Rs m	-5,075	365	-107.2%
Tax	Rs m	8	9	11.0%
Profit after tax	Rs m	-5,083	356	-107.0%
Gross profit margin	%	-220.7	23.5
Effective tax rate	%	-0.2	2.5
Net profit margin	%	-236.1	15.6

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OPTO CIRCUITS Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 10 billion as compared to Rs 12 billion in FY17, thereby witnessing an decrease of -19.0%.
• Long-term debt down at Rs 117 million as compared to Rs 438 million during FY17, a fall of 73.2%.
• Current assets fell 51% and stood at Rs 3 billion, while fixed assets rose 6% and stood at Rs 17 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 20 billion as against Rs 22 billion during FY17, thereby witnessing a fall of 8%.

OPTO CIRCUITS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	8,540	9,426	10.4
Current Liabilities	Rs m	12,088	9,791	-19.0
Long-term Debt	Rs m	438	117	-73.2
Total Liabilities	Rs m	21,856	20,093	-8.1
Current assets	Rs m	5,342	2,608	-51.2
Fixed Assets	Rs m	16,515	17,485	5.9
Total Assets	Rs m	21,856	20,093	-8.1

OPTO CIRCUITS Cash Flow Statement Analysis

• OPTO CIRCUITS's cash flow from operating activities (CFO) during FY18 stood at Rs 696 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 39 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -707 million, an improvement of 63% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 28 million from the Rs -10 million net cash flows seen during FY17.

OPTO CIRCUITS 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	3,085	696	-77.4%
Cash Flow from Investing Activities	Rs m	-1,184	39	-
Cash Flow from Financing Activities	Rs m	-1,911	-707	-
Net Cash Flow	Rs m	-10	28	-

Current Valuations for OPTO CIRCUITS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.2, an improvement from the EPS of Rs -21.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8.0, stands at 8.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 5.7 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	8.9	7.9
TTM Earnings per share	Rs	-21.0	1.2
Diluted earnings per share	Rs	-16.9	1.2
Price to Cash Flow	x	-0.6	5.7
TTM P/E ratio	x	-1.5	8.1
Price / Book Value ratio	x	0.3	0.3
Market Cap	Rs m	2,812	2,743
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for OPTO CIRCUITS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY18, from 0.4x 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 7.3x during FY18, from -28.7x 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 3.8% during FY18, from -59.5% 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 4.4% during FY18, from -54.6% 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 2.1% during FY18, from -22.5% 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	0.4	0.3
Debtors’ Days	Days	410,568,350	60,205,404
Interest coverage	x	-28.7	7.3
Debt to equity ratio	x	0.1	0.0
Return on assets	%	-22.5	2.1
Return on equity	%	-59.5	3.8
Return on capital employed	%	-54.6	4.4

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

OPTO CIRCUITS Share Price Performance

Over the last one year, OPTO CIRCUITS share price has moved down from Rs 9.3 to Rs 8.0, registering a loss of Rs 1.3 or around 14.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 0.0 to 18,476.7, a gain of 18,477 points (up 0.0%).

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

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