SINTEX INDUSTRIES 2017-18 Annual Report Analysis

Sat, 31 Mar

SINTEX INDUSTRIES 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.

SINTEX INDUSTRIES Income Statement Analysis

• Operating income during the year rose 49.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.0% in FY18 as against 14.0% in FY17.
• Depreciation charges increased by 7.5% and finance costs increased by 22.2% YoY, respectively.
• Other income grew by 53.3% YoY.
• Net profit for the year grew by 5.7% YoY.
• Net profit margins during the year declined from 7.0% in FY17 to 4.9% in FY18.

SINTEX INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	19,213	28,727	49.5%
Other income	Rs m	972	1,489	53.3%
Total Revenues	Rs m	20,185	30,216	49.7%
Gross profit	Rs m	2,699	2,876	6.5%
Depreciation	Rs m	1,322	1,422	7.5%
Interest	Rs m	933	1,140	22.2%
Profit before tax	Rs m	1,416	1,803	27.4%
Tax	Rs m	73	384	426.4%
Profit after tax	Rs m	1,343	1,418	5.7%
Gross profit margin	%	14.0	10.0
Effective tax rate	%	5.2	21.3
Net profit margin	%	7.0	4.9

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SINTEX INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 20 billion as compared to Rs 10 billion in FY17, thereby witnessing an increase of 101.4%.
• Long-term debt stood at Rs 42 billion as compared to Rs 36 billion during FY17, a growth of 16.4%.
• Current assets rose 2% and stood at Rs 22 billion, while fixed assets rose 31% and stood at Rs 85 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 107 billion as against Rs 86 billion during FY17, thereby witnessing a growth of 24%.

SINTEX INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	39,137	44,102	12.7
Current Liabilities	Rs m	9,689	19,515	101.4
Long-term Debt	Rs m	36,376	42,336	16.4
Total Liabilities	Rs m	86,190	106,843	24.0
Current assets	Rs m	21,187	21,528	1.6
Fixed Assets	Rs m	65,003	85,315	31.2
Total Assets	Rs m	86,190	106,843	24.0

SINTEX INDUSTRIES Cash Flow Statement Analysis

• SINTEX INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs 182 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -21 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 16 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -5 billion from the Rs -654 million net cash flows seen during FY17.

SINTEX INDUSTRIES 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	5,628	182	-96.8%
Cash Flow from Investing Activities	Rs m	-27,312	-21,230	-
Cash Flow from Financing Activities	Rs m	23,384	15,682	-32.9%
Net Cash Flow	Rs m	-654	-5,367	-

Current Valuations for SINTEX INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.4, an decline from the EPS of Rs 2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 18.0, stands at 7.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.2 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 14.5 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	35.3	48.4
TTM Earnings per share	Rs	2.5	2.4
Diluted earnings per share	Rs	2.2	2.4
Price to Cash Flow	x	23.8	14.5
TTM P/E ratio	x	15.8	7.6
Price / Book Value ratio	x	1.2	0.9
Market Cap	Rs m	48,165	41,275
Dividends per share (Unadj.)	Rs	0.3	0.1

Ratio Analysis for SINTEX INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY18, from 2.2x 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 improved and stood at 2.6x during FY18, from 2.5x 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 3.2% during FY18, from 3.4% 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 improved and stood at 3.4% 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 2.4% during FY18, from 2.6% 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	2.2	1.1
Debtors’ Days	Days	12	8
Interest coverage	x	2.5	2.6
Debt to equity ratio	x	0.9	1.0
Return on assets	%	2.6	2.4
Return on equity	%	3.4	3.2
Return on capital employed	%	3.1	3.4

To see how SINTEX INDUSTRIES has performed over the last 5 years, please visit here.

SINTEX INDUSTRIES Share Price Performance

Over the last one year, SINTEX INDUSTRIES share price has moved down from Rs 105.8 to Rs 18.0, registering a loss of Rs 87.9 or around 83.0%.

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

(To know more, check out historical annual results for SINTEX INDUSTRIES and quarterly results for SINTEX INDUSTRIES)