TVS MOTORS 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.
TVS MOTORS Income Statement Analysis
- Operating income during the year rose 30.7% on a year-on-year (YoY) basis.
- The company's operating profit increased by 72.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.2% in FY18 as against 7.0% in FY17.
- Depreciation charges and finance costs increased by 17.9% YoY and 467.3% YoY, respectively.
- Other income declined by 12.1% YoY.
- Net profit for the year grew by 30.5% YoY.
- Net profit margins during the year grew from 4.0% in FY17 to 4.0% in FY18.
TVS MOTORS Income Statement 2017-18
| No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | % Change | |
|---|---|---|---|---|
| Net Sales | Rs m | 124,626 | 162,945 | 30.7% |
| Other income | Rs m | 1,654 | 1,454 | -12.1% |
| Total Revenues | Rs m | 126,281 | 164,399 | 30.2% |
| Gross profit | Rs m | 8,688 | 14,967 | 72.3% |
| Depreciation | Rs m | 3,168 | 3,736 | 17.9% |
| Interest | Rs m | 596 | 3,382 | 467.3% |
| Profit before tax | Rs m | 6,578 | 9,302 | 41.4% |
| Tax | Rs m | 1,487 | 2,660 | 78.9% |
| Profit after tax | Rs m | 5,093 | 6,648 | 30.5% |
| Gross profit margin | % | 7.0 | 9.2 | |
| Effective tax rate | % | 22.6 | 28.6 | |
| Net profit margin | % | 4.0 | 4.0 | |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
TVS MOTORS Balance Sheet Analysis
- The company's current liabilities during FY18 stood at Rs 79 billion as compared to Rs 32 billion in FY17, thereby witnessing an increase of 144.7%.
- Long-term debt stood at Rs 24 billion as compared to Rs 5 billion during FY17, a growth of 371.0%.
- Current assets rose 162% and stood at Rs 64 billion, while fixed assets rose 32% and stood at Rs 31 billion in FY18.
- Overall, the total assets and liabilities for FY18 stood at Rs 132 billion as against Rs 61 billion during FY17, thereby witnessing a growth of 116%.
TVS MOTORS Balance Sheet as on March 2018
| No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | % Change | |
|---|---|---|---|---|
| Networth | Rs m | 22,160 | 26,772 | 20.8 |
| Current Liabilities | Rs m | 32,086 | 78,531 | 144.7 |
| Long-term Debt | Rs m | 5,012 | 23,609 | 371.0 |
| Total Liabilities | Rs m | 61,280 | 132,135 | 115.6 |
| Current assets | Rs m | 24,343 | 63,729 | 161.8 |
| Fixed Assets | Rs m | 23,701 | 31,209 | 31.7 |
| Total Assets | Rs m | 61,280 | 132,135 | 115.6 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
TVS MOTORS Cash Flow Statement Analysis
- TVS MOTORS's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion on a YoY basis.
- Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion, an improvement of 48.0% on a YoY basis.
- Cash flow from financial activities (CFF) during FY18 stood at Rs 9 billion, an improvement of 1,621% on a YoY basis.
- Overall, net cash flows for the company during FY18 stood at Rs 2 billion from the Rs -785 million net cash flows seen during FY17.
TVS MOTORS 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 | 6,894 | 3,087 | -55.2% |
| Cash Flow from Investing Activities | Rs m | -7,090 | -10,494 | - |
| Cash Flow from Financing Activities | Rs m | -589 | 8,965 | - |
| Net Cash Flow | Rs m | -785 | 1,558 | - |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
Current Valuations for TVS MOTORS
- The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.0, an improvement from the EPS of Rs 10.7 recorded last year.
- The price to earnings (P/E) ratio, at the current price of Rs 517.2, stands at 36.1 times its trailing twelve months earnings.
- The price to book value (P/BV) ratio at current price levels stands at 10.9 times, while the price to sales ratio stands at 1.8 times.
- The company's price to cash flow (P/CF) ratio stood at 23.7 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 | 262.3 | 343.0 |
| TTM Earnings per share | Rs | 10.7 | 14.0 |
| Diluted earnings per share | Rs | 10.7 | 14.0 |
| Price to Cash Flow | x | 29.7 | 23.7 |
| TTM P/E ratio | x | 36.1 | 36.1 |
| Price / Book Value ratio | x | 7.7 | 10.9 |
| Market Cap | Rs m | 245,693 | 245,693 |
| Dividends per share (Unadj.) | Rs | 2.5 | 3.3 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
Ratio Analysis for TVS MOTORS
Solvency Ratios
Profitability Ratios
Current Ratio: The company's current ratio improved and stood at 0.8x 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 3.8x during FY18, from 12.0x 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 improved and stood at 24.8% during FY18, from 23.0% 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 25.2% during FY18, from 26.4% 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 7.6% during FY18, from 9.3% 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 | 0.8 |
| Debtors’ Days | Days | 21 | 24 |
| Interest coverage | x | 12.0 | 3.8 |
| Debt to equity ratio | x | 0.2 | 0.9 |
| Return on assets | % | 9.3 | 7.6 |
| Return on equity | % | 23.0 | 24.8 |
| Return on capital employed | % | 26.4 | 25.2 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
To see how TVS MOTORS has performed over the last 5 years, please visit here.
TVS MOTORS Share Price Performance
Over the last one year, TVS MOTORS share price has moved up from Rs 581.0 to Rs 517.2, registering a loss of Rs 63.9 or around 11.0%.
Meanwhile, the S&P BSE AUTO Index is trading at Rs 24,433.1 (up 0.7%). Over the last one year it has moved up from 23,814.2 to 24,433.1, a gain of 619 points (up 2.6%).
Overall, the S&P BSE SENSEX is up 19.4% over the year.
(To know more, check out historical annual results for TVS MOTORS and quarterly results for TVS MOTORS)
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