THERMAX 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.
THERMAX LTD Income Statement Analysis
- Operating income during the year fell 0.4% on a year-on-year (YoY) basis.
- The company's operating profit decreased by 7.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.0% in FY18 as against 9.7% in FY17.
- Depreciation charges and finance costs increased by 0.7% YoY and 32.3% YoY, respectively.
- Other income grew by 2.1% YoY.
- Net profit for the year grew by 6.9% YoY.
- Net profit margins during the year grew from 4.7% in FY17 to 5.0% in FY18.
THERMAX LTD Income Statement 2017-18
| No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | % Change | |
|---|---|---|---|---|
| Net Sales | Rs m | 44,831 | 44,649 | -0.4% |
| Other income | Rs m | 1,141 | 1,164 | 2.1% |
| Total Revenues | Rs m | 45,971 | 45,813 | -0.3% |
| Gross profit | Rs m | 4,330 | 4,009 | -7.4% |
| Depreciation | Rs m | 819 | 824 | 0.7% |
| Interest | Rs m | 97 | 129 | 32.3% |
| Profit before tax | Rs m | 4,554 | 4,220 | -7.3% |
| Tax | Rs m | 1,560 | 1,658 | 6.3% |
| Profit after tax | Rs m | 2,161 | 2,311 | 6.9% |
| Gross profit margin | % | 9.7 | 9.0 | |
| Effective tax rate | % | 34.3 | 39.3 | |
| Net profit margin | % | 4.7 | 5.0 | |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
THERMAX LTD Balance Sheet Analysis
- The company's current liabilities during FY18 stood at Rs 31 billion as compared to Rs 24 billion in FY17, thereby witnessing an increase of 30.2%.
- Long-term debt stood at Rs 530 million as compared to Rs 460 million during FY17, a growth of 15.2%.
- Current assets rose 24% and stood at Rs 41 billion, while fixed assets rose 33% and stood at Rs 11 billion in FY18.
- Overall, the total assets and liabilities for FY18 stood at Rs 59 billion as against Rs 51 billion during FY17, thereby witnessing a growth of 17%.
THERMAX LTD Balance Sheet as on March 2018
| No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | % Change | |
|---|---|---|---|---|
| Networth | Rs m | 25,376 | 27,147 | 7.0 |
| Current Liabilities | Rs m | 23,652 | 30,787 | 30.2 |
| Long-term Debt | Rs m | 460 | 530 | 15.2 |
| Total Liabilities | Rs m | 50,605 | 59,450 | 17.5 |
| Current assets | Rs m | 32,974 | 41,016 | 24.4 |
| Fixed Assets | Rs m | 8,066 | 10,761 | 33.4 |
| Total Assets | Rs m | 50,605 | 59,450 | 17.5 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
THERMAX LTD Cash Flow Statement Analysis
- THERMAX LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion, an improvement of 59.5% on a YoY basis.
- Cash flow from investing activities (CFI) during FY18 stood at Rs -5 billion, an improvement of 608.3% on a YoY basis.
- Cash flow from financial activities (CFF) during FY18 stood at Rs -203 million, an improvement of 84% on a YoY basis.
- Overall, net cash flows for the company during FY18 stood at Rs 67 million from the Rs 1 billion net cash flows seen during FY17.
THERMAX 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 | 3,346 | 5,336 | 59.5% |
| Cash Flow from Investing Activities | Rs m | -750 | -5,311 | - |
| Cash Flow from Financing Activities | Rs m | -1,256 | -203 | - |
| Net Cash Flow | Rs m | 1,097 | 67 | -93.9% |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
Current Valuations for THERMAX LTD
- The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.4, an improvement from the EPS of Rs 18.1 recorded last year.
- The price to earnings (P/E) ratio, at the current price of Rs 1,021.5, stands at 47.2 times its trailing twelve months earnings.
- The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 2.9 times.
- The company's price to cash flow (P/CF) ratio stood at 35.9 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 | 376.2 | 374.7 |
| TTM Earnings per share | Rs | 18.1 | 19.4 |
| Diluted earnings per share | Rs | 18.1 | 19.4 |
| Price to Cash Flow | x | 33.5 | 35.9 |
| TTM P/E ratio | x | 47.2 | 47.2 |
| Price / Book Value ratio | x | 4.0 | 4.9 |
| Market Cap | Rs m | 121,722 | 121,722 |
| Dividends per share (Unadj.) | Rs | 6.0 | 6.0 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
Ratio Analysis for THERMAX LTD
Solvency Ratios
Profitability Ratios
Current Ratio: The company's current ratio improved and stood at 1.3x during FY18, from 1.4x 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 deteriorated and stood at 33.8x during FY18, from 47.9x 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.
Return on Equity (ROE): The ROE for the company declined and down at 8.5% during FY18, from 8.5% 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 14.8% during FY18, from 14.8% 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 4.1% during FY18, from 4.5% 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 | 1.4 | 1.3 |
| Debtors’ Days | Days | 84 | 102 |
| Interest coverage | x | 47.9 | 33.8 |
| Debt to equity ratio | x | 0.0 | 0.0 |
| Return on assets | % | 4.5 | 4.1 |
| Return on equity | % | 8.5 | 8.5 |
| Return on capital employed | % | 14.8 | 14.8 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
To see how THERMAX LTD has performed over the last 5 years, please visit here.
THERMAX LTD Share Price Performance
Over the last one year, THERMAX LTD share price has moved up from Rs 879.5 to Rs 1,021.5, registering a gain of Rs 142.1 or around 16.2%.
Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 17,884.7 (up 0.8%). Over the last one year it has moved up from 17,247.3 to 17,884.7, a gain of 637 points (up 3.7%).
Overall, the S&P BSE SENSEX is up 19.4% over the year.
(To know more, check out historical annual results for THERMAX LTD and quarterly results for THERMAX LTD)
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