TRIDENT LTD. 2017-18 Annual Report Analysis

TRIDENT LTD. 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.

TRIDENT LTD. Income Statement Analysis

• Operating income during the year fell 1.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.0% in FY18 as against 19.2% in FY17.
• Depreciation charges and finance costs decreased by 2.0% YoY and 16.2% YoY, respectively.
• Other income declined by 11.3% YoY.
• Net profit for the year declined by 21.7% YoY.
• Net profit margins during the year declined from 7.1% in FY17 to 5.7% in FY18.

TRIDENT LTD. Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	46,252	45,575	-1.5%
Other income	Rs m	1,062	942	-11.3%
Total Revenues	Rs m	47,314	46,517	-1.7%
Gross profit	Rs m	8,862	8,199	-7.5%
Depreciation	Rs m	4,125	4,041	-2.0%
Interest	Rs m	1,411	1,182	-16.2%
Profit before tax	Rs m	4,388	3,917	-10.7%
Tax	Rs m	1,016	1,277	25.7%
Profit after tax	Rs m	3,372	2,640	-21.7%
Gross profit margin	%	19.2	18.0
Effective tax rate	%	23.2	32.6
Net profit margin	%	7.1	5.7

* Results Consolidated
Interim results exclude extraordinary / exceptional items

Source: Company Reports, Regulatory Filings, Equitymaster

TRIDENT LTD. Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 17 billion as compared to Rs 14 billion in FY17, thereby witnessing an increase of 18.2%.
• Long-term debt down at Rs 14 billion as compared to Rs 17 billion during FY17, a fall of 19.1%.
• Current assets rose 21% and stood at Rs 18 billion, while fixed assets fell 5% and stood at Rs 42 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 63 billion as against Rs 62 billion during FY17, thereby witnessing a growth of 2%.

TRIDENT LTD. Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	27,569	29,415	6.7
Current Liabilities	Rs m	14,367	16,977	18.2
Long-term Debt	Rs m	17,442	14,108	-19.1
Total Liabilities	Rs m	61,840	63,312	2.4
Current assets	Rs m	15,071	18,308	21.5
Fixed Assets	Rs m	44,680	42,465	-5.0
Total Assets	Rs m	61,840	63,312	2.4

* Results Consolidated
Interim results exclude extraordinary / exceptional items

Source: Company Reports, Regulatory Filings, Equitymaster

TRIDENT LTD. Cash Flow Statement Analysis

• TRIDENT LTD.'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 -2 billion, an improvement of 12.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -3 billion, an improvement of 67% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 202 million from the Rs 229 million net cash flows seen during FY17.

TRIDENT LTD. 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	9,988	4,762	-52.3%
Cash Flow from Investing Activities	Rs m	-1,675	-1,879	-
Cash Flow from Financing Activities	Rs m	-8,084	-2,681	-
Net Cash Flow	Rs m	229	202	-11.5%

* Results Consolidated
Interim results exclude extraordinary / exceptional items

Source: Company Reports, Regulatory Filings, Equitymaster

Current Valuations for TRIDENT LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.3, an decline from the EPS of Rs 6.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 62.5, stands at 13.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 4.8 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	92.9	91.5
TTM Earnings per share	Rs	6.8	5.3
Diluted earnings per share	Rs	6.6	5.2
Price to Cash Flow	x	4.2	4.8
TTM P/E ratio	x	13.3	13.6
Price / Book Value ratio	x	1.2	1.4
Market Cap	Rs m	31,114	31,781
Dividends per share (Unadj.)	Rs	1.5	1.5

* Results Consolidated
Interim results exclude extraordinary / exceptional items

Source: Company Reports, Regulatory Filings, Equitymaster

Ratio Analysis for TRIDENT LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 1.0x 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 4.3x during FY18, from 4.1x 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 9.0% during FY18, from 12.2% 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 11.7% during FY18, from 12.9% 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 6.0% during FY18, from 7.7% 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	1.0	1.1
Debtors’ Days	Days	30	37
Interest coverage	x	4.1	4.3
Debt to equity ratio	x	0.6	0.5
Return on assets	%	7.7	6.0
Return on equity	%	12.2	9.0
Return on capital employed	%	12.9	11.7

* Results Consolidated
Interim results exclude extraordinary / exceptional items

Source: Company Reports, Regulatory Filings, Equitymaster

To see how TRIDENT LTD. has performed over the last 5 years, please visit here.

TRIDENT LTD. Share Price Performance

Over the last one year, TRIDENT LTD. share price has moved up from Rs 97.0 to Rs 62.5, registering a loss of Rs 34.5 or around 35.6%.

Overall, the S&P BSE SENSEX is up 22.4% over the year.

This article was originally published in English at www.equitymaster.com

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