ROLTA INDIA 2017-18 Annual Report Analysis

Sat, 31 Mar

ROLTA INDIA 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.

ROLTA INDIA Income Statement Analysis

• Operating income during the year fell 10.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 94.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.9% in FY18 as against 13.4% in FY17.
• Depreciation charges increased by 1.9% and finance costs increased by 10.4% YoY, respectively.
• Other income declined by 44.3% YoY.
• Net profit for the year declined by 163.4% YoY.
• Net profit margins during the year declined from 5.2% in FY17 to 3.7% in FY18.

ROLTA INDIA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	31,799	28,608	-10.0%
Other income	Rs m	490	273	-44.3%
Total Revenues	Rs m	32,289	28,881	-10.6%
Gross profit	Rs m	4,259	8,264	94.0%
Depreciation	Rs m	2,631	2,682	1.9%
Interest	Rs m	5,702	6,294	10.4%
Profit before tax	Rs m	-3,583	-439	-87.7%
Tax	Rs m	-5,251	618	-111.8%
Profit after tax	Rs m	1,667	-1,057	-163.4%
Gross profit margin	%	13.4	28.9
Effective tax rate	%	146.5	-140.6
Net profit margin	%	5.2	-3.7

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ROLTA INDIA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 36 billion as compared to Rs 22 billion in FY17, thereby witnessing an increase of 60.8%.
• Long-term debt down at Rs 46 billion as compared to Rs 50 billion during FY17, a fall of 8.6%.
• Current assets rose 34% and stood at Rs 44 billion, while fixed assets fell 4% and stood at Rs 62 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 106 billion as against Rs 98 billion during FY17, thereby witnessing a growth of 9%.

ROLTA INDIA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	25,575	24,563	-4.0
Current Liabilities	Rs m	22,183	35,670	60.8
Long-term Debt	Rs m	50,179	45,882	-8.6
Total Liabilities	Rs m	97,634	106,328	8.9
Current assets	Rs m	32,979	44,291	34.3
Fixed Assets	Rs m	64,654	62,038	-4.0
Total Assets	Rs m	97,634	106,328	8.9

ROLTA INDIA Cash Flow Statement Analysis

• ROLTA INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 824 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 760 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -212 million from the Rs -104 million net cash flows seen during FY17.

ROLTA INDIA 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	-464	824	-
Cash Flow from Investing Activities	Rs m	-865	760	-
Cash Flow from Financing Activities	Rs m	1,225	-1,796	-
Net Cash Flow	Rs m	-104	-212	-

Current Valuations for ROLTA INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.4, an decline from the EPS of Rs 10.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 57.5, stands at -5.9 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 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 6.7 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	193.6	173.1
TTM Earnings per share	Rs	10.2	-6.4
Diluted earnings per share	Rs	10.1	-6.4
Price to Cash Flow	x	2.2	6.7
TTM P/E ratio	x	15.5	-5.9
Price / Book Value ratio	x	0.4	0.4
Market Cap	Rs m	11,228	10,937
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ROLTA INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY18, from 1.5x 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 0.9x during FY18, from 0.4x 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 -4.3% during FY18, from 6.5% 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 8.3% during FY18, from 2.8% 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 declined and down at 4.9% during FY18, from 7.5% 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	1.5	1.2
Debtors’ Days	Days	15	19
Interest coverage	x	0.4	0.9
Debt to equity ratio	x	2.0	1.9
Return on assets	%	7.5	4.9
Return on equity	%	6.5	-4.3
Return on capital employed	%	2.8	8.3

To see how ROLTA INDIA has performed over the last 5 years, please visit here.

ROLTA INDIA Share Price Performance

Over the last one year, ROLTA INDIA share price has moved down from Rs 58.1 to Rs 57.5, registering a loss of Rs 0.7 or around 1.1%.

Meanwhile, the S&P BSE IT Index is trading at Rs 12,100.6 (down 0.3%). Over the last one year it has moved up from 10,365.5 to 12,100.6, a gain of 1,735 points (up 16.7%).

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

(To know more, check out historical annual results for ROLTA INDIA and quarterly results for ROLTA INDIA)