"SUBSCRIBE" to Indian Railway Catering and Tourism Corporation Ltd - Levy of convenience fees to mainly drive future earnings; demanded valuation ...
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“SUBSCRIBE” to
Indian Railway Catering and Tourism
Corporation Ltd.
Levy of convenience fees to mainly drive future earnings; demanded valuation reasonable
28th Sept. 2019
Salient features of the IPO: Recommendation SUBSCRIBE
• State owned Indian Railway Catering and Tourism Corporation Ltd.
Price Band Rs. 315 - 320 per Share
(IRCTC), which handles the ticketing and catering services of Indian
Face Value Rs. 10
Railways, is planning to raise up to Rs. 6,450mn through an IPO, which
will open on 30th Sept. and close on 03rd Oct. 2019. The price band is Shares for Fresh Issue Nil
Rs. 315 - 320 per share. Shares for OFS 20.16mn Shares
• The issue is fully OFS, thus the company will not receive any proceeds Fresh Issue Size N/a
from it. OFS Issue Size Rs. 6,350.4 - 6,451.2mn
20.16mn Shares
Total Issue Size
Key competitive strengths: (Rs. 6,350.4 - 6,451.2mn)
• Authorized by the Ministry of Railways to offer Indian Railway tickets Bidding Date 30th Sept. - 03rd Oct. 2019
online Reservation for
• Authorized catering service provider to passengers traveling by Indian 0.16mn Shares
Employees
Railways 20mn Shares (Rs. 6,300 -
• Comprehensive tourism and hospitality service provider in India Net Offer for Sales
6,400mn)
• Exclusively authorized for manufacturing and supplying packaged MCAP at Higher Price
drinking water at railway station and trains Rs. 51,200mn
Band
• Robust operating system and internal controls Enterprise Value at
Rs. 39,800mn
Higher Price Band
Risk and concerns:
IDBI Capital Markets &
• Slowdown in rail passenger traffic and e-ticket bookings
Book Running Lead Securities Ltd., SBI Capital
• Pressure on lowering convenience charge on railway tickets
Manager Markets Ltd. and YES Securities
• Failure to adapt technological changes and industry trends (India) Ltd.
• Unfavorable change in the government policies
Registrar Alankit Assignments Ltd.
Peer comparison and valuation: There is no listed entity in India Sector/Industry Travel Support Services
comparable to the business profile of IRCTC. At the higher price band of The President of India, acting
Rs. 320 per share, the company’s share is valued at a P/E multiple of Promoters through The Ministry of
18.8x (to its restated FY19 EPS of Rs. 17). Railways, Government of India
Pre and post - issue shareholding pattern
Below are few key observations of the issue: (continued in next page) Pre – Issue Post - Issue
Promoter & Promoter
100.00% 87.40%
• IRCTC is a central public sector enterprise, wholly owned by Group
Government of India and under the administrative control of Ministry Public 0.00% 12.60%
of Railways. The company was conferred the status of Mini - ratna Total 100.00% 100.00%
(Category-I Public Sector Enterprise) by the Government of India, on Retail application money at higher cut-off price per lot
1st May 2008. Its scope of services and fees to be charged are Number of Shares per Lot 40
primarily determined by the Ministry of Railways. Application Money Rs. 12,800 per Lot
• IRCTC is the only entity authorized by Indian Railways to provide
Employee and Rs. 10 per Share on the Offer
catering services to railways, online railway tickets and packaged Retail Discount Price
drinking water at railway stations and trains in India. The company is
Analyst
also mandated by Indian Railways to provide tourism & travel related
services like hotel booking, rail, land, cruise and air tour packages. Rajnath Yadav
Currently, it operates in four business segments, namely, internet Research Analyst (022 - 6707 9999; Ext: 912)
ticketing, catering, packaged drinking water and travel & tourism. Email: rajnath.yadav@choiceindia.com
• The company offers railway tickets online through its website and mobile application. It operates one of the most
transacted websites, www.irctc.co.in, in the Asia-Pacific region with transaction volume averaging 25-28mn transactions per
month during the first five months of the current fiscal. As of 31st Aug. 2019, the company has 53.7mn active registered
users. In the first five month of the current fiscal, internet rail ticket formed around 72.6% of total railway tickets booked. As
per RHP, this is likely to increase to 81-83% by FY24.
• Internet ticketing business declined by 29.5% CAGR over FY17-19, mainly due to removal of service/convenience charge of
Rs. 20 and Rs. 40 on non-AC and AC internet ticket reservation, respectively, in Nov. 2016. However, the cost incurred by
the IRCTC for providing the ticketing services in FY18 and FY19 was reimbursed by the Ministry of Railways. With effect from
19th Jul. 2019, the government withdrawn the reimbursement expenses and advised the Ministry of Railways to charge the
customers accordingly. Accordingly from 1st Sept. 2019, the company started charging Rs. 15 and Rs. 30 for every non-AC
and AC internet rail ticket. This may be an additional source of revenue for IRCTC on regular basis. In the past, when the
convenience charge was applied there was a drop in the internet ticket sales volume, but this time with relatively higher
penetration of internet and rising affordability among the travellers, the management is confident of increasing the sales
volume.
1
Peer comparison and valuation (Contd…):
• Internet ticketing segment generated 12.4% of the total revenue and 37.8% of the segmental profit in FY19. This segment
operated at a segmental profit margin of 41% in FY17, which got increased to 67% in FY19. With additional revenue in the
form convenience fees, this segment revenue is expected to increase substantially (around 90% CAGR) over FY19-21.
• Through its Catering segment, the company provides catering services to Indian Railway passengers on train and stations.
Pursuant to the Catering Policy 2017, IRCTC is exclusively authorized to provide catering services. The company provides
catering services for around 350 pre-paid and post-paid trains and 530 static units. This segment generated 55% and 38.8%
of the total revenue and segmental profit, respectively, in FY19. Segmental profit margin expanded from 6.8% in FY17 to
15.6% in FY19.
• IRCTC is the only entity authorized by the Ministry of Railways to manufacture and distribute packaged drinking water at all
railway stations and on trains. The company manufactures and distributes packaged drinking water under brand “Rail
Neer”. Currently, it operates ten Rail Neer plants with an installed production capacity of approximately 1.09mn liters per
day, which caters to approximately 45% of the current demand of packaged drinking water at railway premises and in
trains. To meet the growing demand, the company is commissioning six new Rail Neer plants which once completed would
assist it to meet around 80% of the packed drinking water demand at the railway premises and trains. Additionally, four
new plants have been approved and are likely to be commissioned by 2021. This segment generated 9.3% of the total
revenue and 7% of the segmental profit in FY19. This segment’s business increased by 5.5% CAGR and operated at an
average profit margin of around 19% over FY17-19. With huge unmet demand and proposed capacity expansion, this
segment is expected to grow by 5.6% CAGR over FY19-21.
• The company has been mandated by the Indian Railways to provide tourism & travel related services. Currently, it have
footprints in across all major tourism segments such as hotel bookings, rail, land, cruise and air tour packages and air ticket
bookings. It mainly specializes in rail tourism and offer services like luxury train tours, Bharat Darshan and other rail
packages linked to religious sites. Business from this segment declined by 8.4% CAGR over FY17-19, while operating at a
profit margin of 33.1% in FY19 as compared to 22.7% in FY17. This business contributed 23.4% and 16.4% to the total
revenue and segment profits.
• To start the privatization of the rail operations, Ministry of Railway has recently awarded two routes i.e. Delhi-Lucknow-
Delhi and Mumbai-Ahmedabad-Mumbai to IRCTC on nomination basis. Pursuant to this, the company is free decide the
ticket pricing and the quality of services offered to the travellers. It will be starting the services shortly and will acts as an
additional source of revenue for the company. The management has guided that, this new service would breakeven at 72%
occupancy at base rate and at zero non-fare revenue. The management has also guided a peak business of around Rs.
700mn at the base rate.
• IRCTC has an established track record of delivering strong annual returns to shareholders and its average RoE for last three
fiscal was 26.1%. It has been profitable, dividend paying and debt free company since incorporation. The company reported
a 10.3% CAGR rise in total operating revenue over FY17-19 to Rs. 18,678.8mn in FY19. Total operating expenditure
increased by 10.6% (higher than top-line growth). As a result, EBITDA margin contracted from 20.4% in FY17 to 19.9% in
FY19. EBITDA increased by 9.1% CAGR over FY17-19 to Rs. 3,721.8mn in FY19. Depreciation charge increased by 13% CAGR,
while other income increased by 14.7% CAGR. Consequently, PAT increased by 9.1% CAGR over FY17-19 to Rs. 2,726mn in
FY19. PAT margin contracted from 14.9% in FY17 to 14.6% in FY19. The company had a positive operating cash flow over
FY17-19, which increased by 20.7% CAGR to Rs. 4,926.6mn in FY19. Average operating cash flow during FY17-19 was
around Rs. 2,848.4mn. Average RoIC and RoE over FY17-19 was 20% and 26.1%, respectively. Average dividend payout
over the period was at around 41%.
• Going forward, we are forecast a top-line of Rs. 22,464.3mn in FY20E (a growth of 20.3% over FY19), with an EBITDA and
PAT margin of 20.4% and 16.8%, respectively, as compared to a respective level of 19.9% and 14.6% in FY19. Reported EPS
would be higher by 38.7% over FY19 to Rs. 23.6 in FY20E. Moreover, we are estimating a top-line of Rs. 26,246.8mn in
FY21E, with an EPS of Rs. 27.
• On valuation front, based on the higher price band, IRCTC is demanding a P/E multiple of 18.8x (to its restated FY19 EPS of
Rs. 17). With respect to the projected FY20E and FY21E earnings, it is demanding a P/E valuation of 13.5x and 11.9x,
respectively. Thus, we feel that the demanded valuation is reasonable - considering its monopoly in providing ticketing and
catering services in the Railway premises and trains.
Considering the above observations, we assign a “SUBSCRIBE” rating for the issue.
© CHOICE INSTITUTIONAL RESEARCH
About the issue:
• IRCTC is coming up with an initial public offering (IPO) with 20.16mn shares (fresh issue: nil; OFS shares: 20.16mn shares)
in offering. The offer represents around 12.60% of its post issue paid-up equity shares of the company. Total IPO size is
Rs. 6,350.4 - 6,451.2mn.
• The issue will open on 30th Sept. 2019 and close on 03rd Oct. 2019.
• The issue is through book building process with a price band of Rs. 315 - 320 per share.
• 0.16mn shares are reserved for IRCTC’s employees, thus the net issue size is 20mn shares (Rs. 6,300 - 6,400mn).
• The employee and retail discount is Rs. 10 per share on the offer price.
• Since the issue is fully OFS, the company will not receive any proceeds from it.
• 50% of the net issue shall be allocated on a proportionate basis to qualified institutional buyers, while rest 15% and 35%
is reserved for non-institutional bidders and retail investors, respectively.
• Promoter holds 100% stake in the company and post-IPO this will come down to 87.40%. Public holding will increase from
current nil% to 12.60%.
Pre and post issue shareholding pattern (%)
Pre Issue Post Issue (at higher price band)
Promoter & Promoter Group (%) 100.00% 87.40%
Public (%) 0.00% 12.60%
Source: Choice Equity Broking
Indicative IPO process time line:
Unblocking of
Offer Closes on
ASBA Account
03-Oct-2019
10-Oct-2019
Offer Opens on Finalization of Commencement
30-Sept-2019 Basis of Credit to Demat of Trading
Allotment Accounts 14-Oct-2019
09-Oct-2019 11-Oct-2019Company introduction: As a Central Public Sector Enterprise wholly owned by the Government of India and under the administrative control of the Ministry of Railways, IRCTC is the only entity authorized by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India. The company was incorporated with the objective to upgrade, modernize and professionalize catering and hospitality services, managing hospitality services at railway stations, on trains and other locations and to promote international and domestic tourism in India through public- private participation. It was conferred the status of Mini - ratna (Category-I Public Sector Enterprise) by the Government of India, on May 1, 2008. IRCTC operate one of the most transacted websites, www.irctc.co.in, in the Asia-Pacific region with transaction volume averaging 25-28mn transactions per month during the five months ended 31st Aug. 2019. It has also diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels, which are in line with its objective to build a “one stop solution” for the customers. Currently, the company operates in four business segments, namely, internet ticketing, catering, packaged drinking water under the “Rail Neer” brand, and travel and tourism: Internet Ticketing: IRCTC is the only entity authorized by Indian Railways to offer railway tickets online through its website and mobile application. As of 31st Aug. 2019, more than 1.4mn passengers travelled on Indian Railways on a daily basis, which consisted of approximately 72.6% of Indian Railway’s tickets booked online. As a result, there are more than 0.84mn tickets booked through www.irctc.co.in and “Rail Connect” on a daily basis. The company currently operate one of the most transacted websites in the Asia-Pacific region with a transaction volume of more than 25mn per month and 7.2mn logins per day. The booking of railway tickets through the internet is now available 24 hours per day, 365 day per year, with the only exception being daily maintenance closure from 23:45 hours to 00:20 hours. The main objective behind the introduction of the internet ticketing was that instead of requiring passengers to be physically present at the Passenger Reservation System(PRS), the system should be brought to the door steps of passengers. Catering: IRCTC provides food catering services to Indian Railway passengers on trains and at stations. On-board catering services are referred to as mobile catering and catering services at stations are referred to as static catering. Pursuant to the catering policy issued by Ministry of Railways dated 27th Feb. 2017, the company provides catering services for approximately 350 pre-paid and post-paid trains and 530 static units. It provide catering services through mobile catering units, base kitchens, cell kitchens, refreshment rooms, food plazas, food courts, train side vending, and Jan Ahaars over the Indian Railways network. All other catering units, such as refreshments rooms at stations categorized at B or below, AVMs, milk stalls, and trolleys are managed by zonal railways. The company also offer e-catering services to passengers through its mobile application "Food on Track" and from its e-catering website, www.ecatering.irctc.co.in. The company also operate executive lounges, budget hotels, and retiring rooms for the convenience of the travelling passengers on Indian Railways. Packaged Drinking Water (Rail Neer): IRCTC is the only entity authorized by the Ministry of Railways to manufacture and distribute packaged drinking water at all railway stations and on trains. The company manufactures and distribute packaged drinking water under brand “Rail Neer”. Currently, it operates ten Rail Neer plants located at Nangloi, Danapur, Palur, Ambernath, Amethi, Parassala, Bilaspur, Hapur, Ahmedabad and Bhopal, with an installed production capacity of approximately 1.09mn liters per day, which caters to approximately 45% of the current demand of packaged drinking water at railway premises and in trains. To increase its presence in the packaged drinking water market at railway stations, and to meet the growing demand, the company is commissioning new Rail Neer plants at Sankrail, Jagi Road, Nagpur, Bhusawal, Jabalpur, and Una. Further four new Rail Neer plants have been approved by the Company’s Board of Directors and will be commissioned by 2021. IRCTC have also installed water vending machines at railway stations to provide purified, chilled and portable drinking water to railway passengers at an affordable price. Travel and Tourism: The company have been mandated by Indian Railways to provide tourism and travel related services. As of 24th Sept. 2019, it has footprints in across all major tourism segments such as hotel bookings, rail, land, cruise and air tour packages and air ticket bookings, and are known as one of India's leading travel and tourism companies catering to the needs of diverse tourist segments. With the strength of being a CPSE under the administrative control of the Ministry of Railways, we specialize in rail tourism.
Company introduction (Contd…):
Source: Company PresentationCompany introduction (Contd…):
Financial performance: IRCTC has an established track record of delivering strong annual returns to shareholders and its
average RoE for last three fiscal was 26.1%. It has been profitable, dividend paying and debt free company since
incorporation.
The company reported a 10.3% CAGR rise in total operating revenue over FY17-19 to Rs. 18,678.8mn in FY19. Top-line
growth was primarily aided by 151% CAGR rise in the business from the catering services. Catering segment contributed
55%, while Tourism segment contributed 13.3% to the total revenue in FY19. Internet Ticketing, Railneer and State Teertha
segments contributed 12.4%, 9.3% and 10%, respectively.
Total operating expenditure increased by 10.6% (higher than top-line growth). As a result, EBITDA margin contracted from
20.4% in FY17 to 19.9% in FY19. EBITDA increased by 9.1% CAGR over FY17-19 to Rs. 3,721.8mn in FY19.
Depreciation charge increased by 13% CAGR, while other income increased by 14.7% CAGR. Consequently, PAT increased by
9.1% CAGR over FY17-19 to Rs. 2,726mn in FY19. PAT margin contracted from 14.9% in FY17 to 14.6% in FY19.
The company had a positive operating cash flow over FY17-19, which increased by 20.7% CAGR to Rs. 4,926.6mn in FY19.
Average operating cash flow during FY17-19 was around Rs. 2,848.4mn. Average RoIC and RoE over FY17-19 was 20% and
26.1%, respectively. Moreover, average dividend payout over the period was at around 41%.
(Rs. mn) FY17 FY18 FY19 CAGR (%) Y-o-Y (%)
Catering 3,986.3 7,402.7 10,445.1 61.9% 41.1%
Railneer 1,590.5 1,692.0 1,762.9 5.3% 4.2%
Internet Ticketing 4,693.1 2,071.3 2,345.9 -29.3% 13.3%
Tourism 2,640.3 1,899.0 2,531.4 -2.1% 33.3%
State Teertha 2,648.3 2,134.8 1,908.8 -15.1% -10.6%
Segmental Revenue 15,558.4 15,199.9 18,994.1 10.5% 25.0%
Total Operating Revenue (Gross) 15,353.9 14,704.6 18,678.8 10.3% 27.0%
EBITDA 3,125.5 2,731.0 3,721.8 9.1% 36.3%
Reported PAT 2,290.8 2,206.2 2,726.0 9.1% 23.6%
Restated Adjusted EPS 14.3 13.8 17.0 9.1% 23.6%
Cash Flow from Operating Activities 3,382.4 236.3 4,926.6 20.7% 1985.3%
NOPLAT 1,938.2 1,657.0 1,931.4 -0.2% 16.6%
FCF (114.7) 1,683.0 -1567.7%
RoIC (%) 24.0% 16.9% 19.2% (486) bps 232 bps
Revenue Growth Rate (%) -4.2% 27.0%
EBITDA Growth Rate (%) -12.6% 36.3%
EBITDA Margin (%) 20.4% 18.6% 19.9% (43) bps 135 bps
Reported PAT Growth Rate (%) -3.7% 23.6%
Reported PAT Margin (%) 14.9% 15.0% 14.6% (33) bps (41) bps
Fixed Asset Turnover Ratio (x) 8.2 7.4 8.4 1.1% 12.7%
Total Asset Turnover Ratio (x) 0.8 0.6 0.7 -7.3% 14.0%
Current Ratio (x) 1.7 1.6 1.5 -3.7% -5.2%
Debt to Equity (x)
Net Debt to EBITDA (x) (2.7) (3.1) (3.1) 5.9% 0.3%
RoE (%) 29.1% 23.1% 26.1% (298) bps 303 bps
RoA (%) 12.5% 9.5% 10.6% (199) bps 104 bps
RoCE (%) 33.0% 23.9% 31.0% (206) bps 707 bps
Source: Choice Equity BrokingCompetitive strengths:
• Authorized by the Ministry of Railways to offer Indian Railway tickets online
• Authorized catering service provider to passengers traveling by Indian
Railways
• Comprehensive tourism and hospitality service provider in India
• Exclusively authorized for manufacturing and supplying packaged drinking
water at railway station and trains
• Robust operating system and internal controls
Business strategy:
• Diversifying and offering new services to the passengers of Indian Railways
and others
• Continue to leverage the Government's policy relating to the business
• Strengthen products and services offering online
• Strengthen operational efficiencies
Risk and concerns:
• Slowdown in rail passenger traffic and e-ticket bookings
• Pressure on lowering convenience charge on railway tickets
• Failure to adapt technological changes and industry trends
• Unfavorable change in the government policies
© CHOICE INSTITUTIONAL RESEARCHFinancial statements:
Profit and loss statement (Rs. mn)
CAGR over Annual Growth
FY17 FY18 FY19
FY17 - 19 (%) over FY18 (%)
Total Operating Revenue (Gross) 15,353.9 14,704.6 18,678.8 10.3% 27.0%
Cost of Materials Consumed (959.4) (948.1) (933.1) -1.4% -1.6%
Purchase of Stock-in-Trade (1,149.2) (1,580.1) (309.5) -48.1% -80.4%
Changes in Inventories of Finished Goods, Work-in-
(6.3) 4.0 1.5 -63.7%
Progress and Stock-in-Trade
Excise Duty (157.4) (43.7) -100.0% -100.0%
Expenses of Catering Services (780.9) (2,462.7) (6,391.0) 186.1% 159.5%
Expenses of Tourism (4,155.8) (3,052.0) (3,090.1) -13.8% 1.2%
Manufacturing & Direct Expenses (2,377.6) (670.9) (612.7) -49.2% -8.7%
Employee Benefit Expense (1,638.5) (1,921.9) (1,950.6) 9.1% 1.5%
Other Expenses (1,003.3) (1,298.3) (1,671.6) 29.1% 28.8%
EBITDA 3,125.5 2,731.0 3,721.8 9.1% 36.3%
Depreciation and Amortization Expenses (224.1) (236.6) (286.4) 13.0% 21.0%
EBIT 2,901.4 2,494.4 3,435.4 8.8% 37.7%
Finance Costs (25.4) (29.1) (23.5) -3.8% -19.3%
Other Income 674.7 991.0 887.8 14.7% -10.4%
PBT 3,550.7 3,456.3 4,299.6 10.0% 24.4%
Tax Expenses (1,259.9) (1,250.1) (1,573.7) 11.8% 25.9%
Reported PAT 2,290.8 2,206.2 2,726.0 9.1% 23.6%
Balance sheet statement (Rs. mn)
CAGR over
Annual Growth
FY17 FY18 FY19 FY17 - 19
over FY18 (%)
(%)
Equity Share Capital 400.0 400.0 1,600.0 100.0% 300.0%
Other Equity 7,465.6 9,145.3 8,828.4 8.7% -3.5%
Non Current Financial Liabilities 58.8 242.3 147.2 58.2% -39.2%
Long Term Provisions 779.7 584.7 461.6 -23.1% -21.1%
Other Non Current Liabilities 83.3 69.4 58.1 -16.5% -16.2%
Trade Payables 1,375.8 1,508.3 1,919.6 18.1% 27.3%
Other Current Financial Liabilities 4,231.9 5,209.5 6,259.3 21.6% 20.2%
Other Current Liabilities 3,802.1 5,999.0 6,171.6 27.4% 2.9%
Short Term Provisions 12.1 32.8 137.5 236.9% 319.9%
Current Tax Liabilities (Net) 55.1 254.5 114.8%
Total Liabilities 18,264.6 23,191.1 25,837.8 18.9% 11.4%
Property, Plant and Equipment 1,577.8 1,556.5 1,470.5 -3.5% -5.5%
Capital Work-in-Progress 168.3 76.5 403.8 54.9% 427.6%
Other Intangible Assets 126.2 65.6 75.5 -22.7% 15.0%
Investment Property 276.2 276.6 0.1%
Non Current Investments 0.0 0.0 0.0 0.0% 0.0%
Non Current Loans 22.0 20.6 23.9 4.3% 16.2%
Other Non Current Financial Assets 4.1 9.7 0.8 -55.5% -91.6%
Deferred Tax Assets (Net) 575.2 463.5 770.8 15.8% 66.3%
Other Non-Current Assets 124.1 120.3 228.7 35.8% 90.2%
Inventories 65.8 74.1 78.9 9.5% 6.5%
Trade Receivables 2,894.0 5,509.2 5,817.3 41.8% 5.6%
Cash and Bank Balances 8,529.6 8,338.7 11,400.4 15.6% 36.7%
Current Loans 95.8 89.9 83.5 -6.6% -7.1%
Other Current Financial Assets 159.2 170.7 347.3 47.7% 103.5%
Current Tax Assets (Net) 68.4 82.8 100.9 21.5% 21.8%
Other Current Assets 3,854.1 6,336.9 4,759.0 11.1% -24.9%
Total Assets 18,264.5 23,191.0 25,837.8 18.9% 11.4%
Source: Choice Equity Broking
© CHOICE INSTITUTIONAL RESEARCHFinancial statements:
Cash flow statement (Rs. mn)
CAGR over Annual Growth
Particulars (Rs. mn) FY17 FY18 FY19
FY17 - 19 (%) over FY18 (%)
Cash Flow Before Working Capital Changes 3,340.1 3,264.6 3,955.2 8.8% 21.2%
Change in Working Capital 1,423.1 (1,769.2) 2,599.3 35.1% -246.9%
Cash Flow from Operating Activities 3,382.4 236.3 4,926.6 20.7% 1985.3%
Purchase of Property , Plant & Equipment (321.3) (345.3) (542.8) 30.0% 57.2%
Cash Flow from Investing Activities 935.7 402.1 (3,463.5) -961.4%
Cash Flow from Financing Activities (1,359.5) (567.9) (1,794.0) 14.9% 215.9%
Net Cash Flow 2,958.6 70.4 (330.9) -569.9%
Opening Balance of Cash and Bank Balances 1,902.6 4,861.2 4,931.6 61.0% 1.4%
Closing Balance of Cash and Bank Balances 4,861.2 4,931.6 4,600.7 -2.7% -6.7%
Financial ratios
Particulars (Rs. mn) FY17 FY18 FY19
Revenue Growth Rate (%) -4.2% 27.0%
EBITDA Growth Rate (%) -12.6% 36.3%
EBITDA Margin (%) 20.4% 18.6% 19.9%
EBIT Growth Rate (%) -14.0% 37.7%
EBIT Margin (%) 18.9% 17.0% 18.4%
Adjusted PAT Growth Rate (%) -3.7% 23.6%
Adjusted PAT Margin (%) 14.9% 15.0% 14.6%
Liquidity ratios
Current Ratio 1.7 1.6 1.5
Debt Equity Ratio
Net Debt to EBITDA (2.7) (3.1) (3.1)
Turnover ratios
Inventories Days 11.4 10.1 22.5
Debtor Days 68.8 104.3 110.7
Payable Days (237.4) (208.5) (504.0)
Cash Conversion Cycle (157.3) (94.1) (370.9)
Fixed Asset Turnover Ratio (x) 8.2 7.4 8.4
Total Asset Turnover Ratio (x) 0.8 0.6 0.7
Return ratios
RoE (%) 29.1% 23.1% 26.1%
RoA (%) 12.5% 9.5% 10.6%
RoCE (%) 33.0% 23.9% 31.0%
Per share data
Restated Reported EPS (Rs.) 14.3 13.8 17.0
Restated DPS (Rs.) 5.3 5.6 7.6
Restated BVPS (Rs.) 49.2 59.7 65.2
Restated Operating Cash Flow Per Share (Rs.) 21.1 1.5 30.8
Restated Free Cash Flow Per Share (Rs.) (0.7) 10.5
Dividend Payout Ratio 37.0% 40.3% 44.9%
Note: Ratios calculated on pre-issue data; Source: Company RHP
© CHOICE INSTITUTIONAL RESEARCHDisclaimer
This is solely for information of clients of Choice Broking and does not construe to be an investment advice. It is also not
intended as an offer or solicitation for the purchase and sale of any financial instruments. Any action taken by you on the
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