PUNJ LLOYD 2017-18 Annual Report Analysis

Sat, 31 Mar

PUNJ LLOYD 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.

PUNJ LLOYD Income Statement Analysis

• Operating income during the year rose 4.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 52.0% YoY during the fiscal. Operating profit margins witnessed a growth and down at 9.6% in FY18 as against 20.9% in FY17.
• Depreciation charges decreased by 12.0% and finance costs increased by 6.8% YoY, respectively.
• Other income declined by 62.7% YoY.
• Net profit for the year declined by 92.8% YoY.
• Net profit margins during the year grew from 17.8% in FY17 to 1.2% in FY18.

PUNJ LLOYD Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	48,673	50,804	4.4%
Other income	Rs m	13,551	5,054	-62.7%
Total Revenues	Rs m	62,224	55,858	-10.2%
Gross profit	Rs m	-10,159	-4,874	-52.0%
Depreciation	Rs m	2,205	1,941	-12.0%
Interest	Rs m	10,182	10,875	6.8%
Profit before tax	Rs m	-8,996	-12,636	40.5%
Tax	Rs m	-349	-12,017	3,346.2%
Profit after tax	Rs m	-8,647	-619	-92.8%
Gross profit margin	%	-20.9	-9.6
Effective tax rate	%	3.9	95.1
Net profit margin	%	-17.8	-1.2

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PUNJ LLOYD Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 119 billion as compared to Rs 119 billion in FY17, thereby witnessing an increase of 0.5%.
• Long-term debt down at Rs 10 billion as compared to Rs 19 billion during FY17, a fall of 47.2%.
• Current assets fell 18% and stood at Rs 81 billion, while fixed assets fell 23% and stood at Rs 16 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 97 billion as against Rs 120 billion during FY17, thereby witnessing a fall of 19%.

PUNJ LLOYD Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	-18,301	-20,316	11.0
Current Liabilities	Rs m	118,670	119,313	0.5
Long-term Debt	Rs m	18,713	9,876	-47.2
Total Liabilities	Rs m	119,568	97,139	-18.8
Current assets	Rs m	98,526	80,933	-17.9
Fixed Assets	Rs m	21,042	16,206	-23.0
Total Assets	Rs m	119,568	97,139	-18.8

PUNJ LLOYD Cash Flow Statement Analysis

• PUNJ LLOYD 's cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -590 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -3 billion from the Rs 2 billion net cash flows seen during FY17.

PUNJ LLOYD 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	8,530	4,876	-42.8%
Cash Flow from Investing Activities	Rs m	644	-590	-
Cash Flow from Financing Activities	Rs m	-6,520	-6,909	-
Net Cash Flow	Rs m	1,792	-2,507	-

Current Valuations for PUNJ LLOYD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.8, an improvement from the EPS of Rs -25.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 17.1, stands at 1.8 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 0.1 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	145.6	151.4
TTM Earnings per share	Rs	-25.9	-1.8
Diluted earnings per share	Rs	-25.8	-1.8
Price to Cash Flow	x	-1.0	5.7
TTM P/E ratio	x	-0.8	1.8
Price / Book Value ratio	x	-0.4	-0.4
Market Cap	Rs m	7,687	7,551
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PUNJ LLOYD

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY18, from 0.8x 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 0.1x 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 declined and down at 3.0% during FY18, from 47.3% 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 16.9% during FY18, from 287.8% 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 10.6% 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	0.8	0.7
Debtors’ Days	Days	13	13
Interest coverage	x	0.1	-0.2
Debt to equity ratio	x	-1.0	-0.5
Return on assets	%	1.3	10.6
Return on equity	%	47.3	3.0
Return on capital employed	%	287.8	16.9

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

PUNJ LLOYD Share Price Performance

Over the last one year, PUNJ LLOYD share price has moved down from Rs 19.4 to Rs 17.1, registering a loss of Rs 2.4 or around 12.1%.

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 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

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

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