Analysis of all the important financial statements from FY2012-13 to FY2016-17. This is my analysis of the financial statements released by the company.
3. 1944 1957 1960 1962
1974 - 1978
1988
Tractors India incorporated.
Representation for Caterpillar in
Eastern India
Converted to Public Ltd
Company
Joint venture with
Coles Cranes
India’s first indigenously
manufactured Mobile Crane
rolls out of Kamarhatty
Distributorship for Caterpillar extends
to Nepal, Sikkim Bhutan & Myanmar
Manufactures India’s first
Rough Terrain Crane
1982
Manufactures India’s first 100 tonne
Truck Mounted Mobile Crane
M I L E S T O N E S / J O U R N E Y
1994
ISO 9001
Material Handling Division
certified by BVQI
Launches 6 Sigma
Tie up with Famak SA
For Yard Equipment , ELL
2002
2005
Receives BEST SUPPLIER AWARD
from Tata Steel
Wins Caterpillar APD Presidents
Award for 6 Sigma
4. 2006
Tie up with
Mitsui – Paceco for
Port equipment
Ties Up with Hyster –a division of
Nacco Materials Handling Group
(NMHG) for Forklifts &Container
Handlers for India, Nepal Bhutan.
Ties up with Astec Inc for bringing
their Road Building Solutions to
India
M I L E S T O N E S / J O U R N E Y
2011
Tie up with
Astec UG for HDD &
Trenchers for India
Market
2007
Wins construction world
NICMAR award for the second
time
MHS division rolls out the
5000th Crane from Kamarhatty
2008
2016
Sale of it’s subsidiary
TIPL to GMPL
7. CONSOLIDATED BALANCE SHEET
(VALUES OF RUPEE. IN CRORE)
BALANCE SHEET
PARTICULARS 2017-March 2016-March 2015-March 2014-March 2013-March
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Total Shareholders Funds 312.38 287.39 329.97 364.12 357.44
NON-CURRENT LIABILITIES
Total Non-Current Liabilities 28.8 159.28 188.24 224.38 145.69
CURRENT LIABILITIES
Total Current Liabilities 228.92 1,018.07 747.35 731.56 663.69
Total Capital And Liabilities 570.1 1,464.74 1,265.56 1,320.06 1,166.82
ASSETS
NON-CURRENT ASSETS
Total Non-Current Assets 235.16 374.03 440.43 434.73 350.67
CURRENT ASSETS
Total Current Assets 334.94 1,090.71 825.13 885.33 816.15
Total Assets 570.1 1,464.74 1,265.56 1,320.06 1,166.82
8. DETAILED TREND ANALYSIS – BALANCE SHEET
FY 2012-13 as base year
BALANCE SHEET TREND ANALYSIS
13-Mar 14-Mar 15-Mar 16-Mar Mar 17 13-Mar 14-Mar 15-Mar 16-Mar Mar 17
EQUITIES AND LIABILITIES EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS SHAREHOLDER'S FUNDS
Equity Share Capital 10.03 10.03 10.03 10.03 10.03 Equity Share Capital 100.00% 0.00% 0.00% 0.00% 0.00%
Preference Share Capital 0 0 0.15 0.15 0 Preference Share Capital 100.00% 0.00% 0.00% 0.00% -100.00%
Total Share Capital 10.03 10.03 10.18 10.18 10.03 Total Share Capital 100.00% 0.00% 1.50% 0.00% -1.47%
Revaluation Reserves 6.59 6.44 6.44 6.44 0 Revaluation Reserves 100.00% -2.28% 0.00% 0.00% -100.00%
Reserves and Surplus 340.82 347.65 313.35 270.77 302.35 Reserves and Surplus 100.00% 2.00% -9.87% -13.59% 11.66%
Total Reserves and Surplus 347.41 354.09 319.79 277.21 302.35 Total Reserves and Surplus 100.00% 1.92% -9.69% -13.31% 9.07%
Total Shareholders Funds 357.44 364.12 329.97 287.39 312.38 Total Shareholders Funds 100.00% 1.87% -9.38% -12.90% 8.70%
NON-CURRENT LIABILITIES NON-CURRENT LIABILITIES
Long Term Borrowings 125.83 199.16 160.79 135.11 14.97 Long Term Borrowings 100.00% 58.28% -19.27% -15.97% -88.92%
Deferred Tax Liabilities [Net] 13.04 17.07 14.12 12.59 10.68 Deferred Tax Liabilities [Net] 100.00% 30.90% -17.28% -10.84% -15.17%
Long Term Provisions 6.82 8.15 13.33 11.58 3.15 Long Term Provisions 100.00% 19.50% 63.56% -13.13% -72.80%
Total Non-Current Liabilities 145.69 224.38 188.24 159.28 28.8 Total Non-Current Liabilities 100.00% 54.01% -16.11% -15.38% -81.92%
CURRENT LIABILITIES CURRENT LIABILITIES
Short Term Borrowings 368.06 355.18 489.92 588.23 34.54 Short Term Borrowings 100.00% -3.50% 37.94% 20.07% -94.13%
Trade Payables 132.53 193.51 140.38 248.64 78.82 Trade Payables 100.00% 46.01% -27.46% 77.12% -68.30%
Other Current Liabilities 56.4 75.13 115.94 178.95 114.42 Other Current Liabilities 100.00% 33.21% 54.32% 54.35% -36.06%
Short Term Provisions 106.7 107.74 1.11 2.25 1.14 Short Term Provisions 100.00% 0.97% -98.97% 102.70% -49.33%
Total Current Liabilities 663.69 731.56 747.35 1,018.07 228.92 Total Current Liabilities 100.00% 10.23% 2.16% 36.22% -77.51%
Total Capital And Liabilities 1,166.82 1,320.06 1,265.56 1,464.74 570.1 Total Capital And Liabilities 100.00% 13.13% -4.13% 15.74% -61.08%
9. NOTES
• There is a decline in the Shareholder’s fund since 2013 with no changes in the position of Share capital and Reserves,
however there has been a rise in the total value as compared to FY 2016 because of profit made by selling of it’s subsidiary
of Caterpillar Inc. business which added to the Surplus of the company.
• Long Term Liabilities have reduced to a greater extent which may attract the shareholders, however it can be analyzed as
below :-
For Long Term Borrowings the company has been able to take care of it’s long term liabilities since 2013 which has
always been on decrease. But a very big and significant decrease has taken place from 2016 to 2017 which reduced by
an extent of -89% as compared to 2016, by taking care of the Term loans from Banks and Vehicle loans from other
financial institutions.
Differed Tax Liability is decreasing in the range of 10-17%, the company is trying to keep the provisions for future tax in
the same level.
Long term Provisions have increased since 2012 to 2015 up to 63% of value INR 13.33 Crore for consideration of product
warranties and employee benefits, but maybe because of decrease in sales as a result of market conditions and
rationalization of total employee size, a decreasing trend has been observed which went low up to INR 3.15 crore
• Current Liabilities have increased till FY2016 which may mean that the company had paid a lot for fulfilling stock requirement
and services. However there has been significant decrease of -77.51% as compared to 2016
Short term borrowings have decreased in the FY 2017 because the unsecured loans were not availed as well as the
Secured loan component also decreased very much from which it can be inferred that lesser good were purchased for
stock in both the factories.
Trade payables also follow the same pattern as the short term borrowings. The reasons may also be same, related to
purchase of goods and services
Other current liabilities have increasing every year up to FY 2016, followed by a decrease of -36%
10. ANALYSIS OF LIABILITY & CAPITAL OF LAST 5 FY
357.44 364.12
329.97
287.39 312.38
145.69
224.38
188.24 159.28
28.8
663.69
731.56 747.35
1,018.07
228.92
1,166.82
1,320.06
1,265.56
1,464.74
570.1
0
200
400
600
800
1000
1200
1400
1600
13-MAR 14-MAR 15-MAR 16-MAR MAR 17
CAPITAL & LIABILITY ANALYSIS
Total Shareholders Funds Total Non-Current Liabilities
Total Current Liabilities Total Capital And Liabilities
11. DETAILED TREND ANALYSIS – BALANCE SHEET
ASSETS 13-Mar 14-Mar 15-Mar 16-Mar Mar 17 ASSETS 13-Mar 14-Mar 15-Mar 16-Mar Mar 17
NON-CURRENT ASSETS NON-CURRENT ASSETS
Tangible Assets 274.15 279.91 280.11 311.52 179.2 Tangible Assets 100.00% 2.10% 0.07% 11.21% -42.48%
Intangible Assets 2.57 23.99 20.2 19.09 4.76 Intangible Assets 100.00% 833.46% -15.80% -5.50% -75.07%
Capital Work-In-Progress 55.83 43.32 43.3 2.2 1.76 Capital Work-In-Progress 100.00% -22.41% -0.05% -94.92% -20.00%
Intangible Assets Under
Development
16.17 0 2.5 0.04 0
Intangible Assets Under
Development
100.00% -100.00% #DIV/0! -98.40% -100.00%
Fixed Assets 348.72 347.22 346.11 332.85 185.72 Fixed Assets 100.00% -0.43% -0.32% -3.83% -44.20%
Non-Current Investments 0.07 0.07 0.2 15.27 17.99 Non-Current Investments 100.00% 0.00% 185.71% 7535.00% 17.81%
Deferred Tax Assets [Net] 0 0 0.47 0.49 1.26 Deferred Tax Assets [Net] 100.00% 0.00% #DIV/0! 4.26% 157.14%
Long Term Loans And Advances 1.87 87.43 93.63 24.99 29.88 Long Term Loans And Advances 100.00% 4575.40% 7.09% -73.31% 19.57%
Other Non-Current Assets 0 0 0.01 0.42 0.31 Other Non-Current Assets 100.00% #DIV/0! #DIV/0! 4100.00% -26.19%
Total Non-Current Assets 350.67 434.73 440.43 374.03 235.16 Total Non-Current Assets 100.00% 23.97% 1.31% -15.08% -37.13%
CURRENT ASSETS CURRENT ASSETS
Inventories 339.07 359.91 401.47 446.08 185.13 Inventories 100.00% 6.15% 11.55% 11.11% -58.50%
Trade Receivables 232.02 271.35 292.13 422.9 94.12 Trade Receivables 100.00% 16.95% 7.66% 44.76% -77.74%
Cash And Cash Equivalents 47.52 44.38 38.45 32.49 16.31 Cash And Cash Equivalents 100.00% -6.61% -13.36% -15.50% -49.80%
Short Term Loans And
Advances
193.51 209.69 93.07 182.56 39.38
Short Term Loans And
Advances
100.00% 8.36% -55.62% 96.15% -78.43%
OtherCurrentAssets 4.03 0 0.01 6.68 0 OtherCurrentAssets 100.00% -100.00% #DIV/0! 66700.00% -100.00%
Total Current Assets 816.15 885.33 825.13 1,090.71 334.94 Total Current Assets 100.00% 8.48% -6.80% 32.19% -69.29%
Total Assets 1,166.82 1,320.06 1,265.56 1,464.74 570.1 Total Assets 100.00% 13.13% -4.13% 15.74% -61.08%
BALANCE SHEET TREND ANALYSIS
12. • Total Non-Current Assets have increased till FY 2015 and then decreased to it’s half almost in FY2017. Further analysis done below:-
Tangible fixed assets value grew up to 2016 for increasing it’s market coverage area and operations, but it declined in the next FY
because of sale of Caterpillar Inc. business
Intangible Assets increased to a whooping 834% in FY2014 maybe because of intake of Technical drawings and software
required for manufacturing and operations, which declined to a minimum level and then dropped down drastically in the FY
2017 after sale of the subsidiary TIPL.
Work In Progress values have declined but they have degraded drastically for the Fys 2016 and 2017, mainly because of lesser
sales due to declining market share and lesser demand of crane in the total market.
The company have few investments in the form of Equity shares in companies of Eveready, McLeod Russel, Bank of India etc. and
invest in Mutual funds in the market apart from the Debentures receipt from Woodland Hospitals. There has been an increase in
Investment in the Mutual Funds in the FY 2016 and FY2017.
Long term loan and advancement had increased till FY2015 and then decreased with partial increase of 20% with respect to the
previous year because of Minimum Alternate Tax Credit Entitlement (excess amount of tax credited back to the company).
• Total current asset had increased up to FY 2016, but has decreased by -69% in the FY 2017 as compared to the last. Further analysis as
below :-
Inventories were increasing because of decreasing demand and customer order against the projected sales till FY 2016, however
unnecessary inventories have been scrapped and others were written off because of introduction of new technicalities in the
product.
Trade receivables have also followed the same pattern as the above with considerable decrease in the FY2017, mainly because of
separation of the Caterpillar Inc. subsidiary business and lesser no of orders received from customers as a result of decrease in
demand of cranes.
Cash equivalents have continuously decreased with a drastic one in the last FY2017, mainly to tackle the increasing short term
liabilities with decrease in the profit of the company and separation of the profitable Subsidiary business
NOTES
13. ANALYSIS OF ASSET OF LAST 5 FY
350.67
434.73 440.43
374.03
235.16
816.15
885.33
825.13
1,090.71
334.94
1,166.82
1,320.06
1,265.56
1,464.74
570.1
0
200
400
600
800
1000
1200
1400
1600
13-MAR 14-MAR 15-MAR 16-MAR MAR 17
ASSET ANALYSIS
Total Non-Current Assets Total Current Assets Total Assets
15. CONSOLIDATED PROFIT AND LOSS
STATEMENT (VALUES IN RUPEE. CRORE)
PARTICULAR FY2016-17 FY 2015-16 FY 2014-15 FY 2013-14 FY 2012-13
Total Revenue from Operations 321.84 1,745.00 1,477.31 1,323.48 1,184.73
Total Expenses 312.77 1,772.44 1,455.15 1,308.81 1,176.56
Profit/Loss Before Exceptional,
ExtraOrdinary Items And Tax
9.07 -27.44 22.16 14.67 8.17
Exceptional Items -121.67 0 0 0 0
Profit/Loss Before Tax -112.6 -27.44 22.16 14.67 8.17
Total Tax Expenses 2.36 16.15 17.44 4.74 3.86
Profit/Loss From Continuing
Operations
-114.96 -43.59 4.72 9.93 4.31
Profit Loss From Discontinuing
Operations
155.57 0 0 0 0
Total Tax Expenses Discontinuing
Operations
14.16 0 0 0 0
Net Profit Loss From Discontinuing
Operations
141.41 0 0 0 0
Profit/Loss For The Period 26.45 -43.59 4.72 9.93 4.31
16. DETAILED TREND ANALYSIS – P&L STATEMENT
CONSOLIDATED PROFIT & LOSS STATEMENT TREND ANALYSIS
13-Mar 14-Mar 15-Mar 16-Mar Mar 17 13-Mar 14-Mar 15-Mar 16-Mar Mar 17
INCOME INCOME
Revenue From Operations
[Gross]
1,153.50 1,283.70 1,457.02 1,716.51 329.45
Revenue From Operations
[Gross]
100.00% 11.29% 13.50% 17.81% -80.81%
Less: Excise/Sevice
Tax/Other Levies
29.2 24.24 30.27 33.06 24.72
Less: Excise/Service
Tax/Other Levies
100.00% -16.99% 24.88% 9.22% -25.23%
Revenue From Operations
[Net]
1,124.30 1,259.46 1,426.75 1,683.45 304.73
Revenue From Operations
[Net]
100.00% 12.02% 13.28% 17.99% -81.90%
Other Operating
Revenues
49.35 53.12 44.7 52.82 3.44
Other Operating
Revenues
100.00% 7.64% -15.85% 18.17% -93.49%
Total Operating Revenues 1,173.65 1,312.58 1,471.45 1,736.27 308.17 Total Operating Revenues 100.00% 11.84% 12.10% 18.00% -82.25%
Other Income 11.08 10.9 5.86 8.73 13.67 Other Income 100.00% -1.62% -46.24% 48.98% 56.59%
Total Revenue 1,184.73 1,323.48 1,477.31 1,745.00 321.84 Total Revenue 100.00% 11.71% 11.62% 18.12% -81.56%
EXPENSES EXPENSES
Cost Of Materials
Consumed
194.28 220.23 198.75 216.48 168.66
Cost Of Materials
Consumed
100.00% 13.36% -9.75% 8.92% -22.09%
Purchase Of Stock-In
Trade
713.01 747.7 876.03 1,145.44 35.17
Purchase Of Stock-In
Trade
100.00% 4.87% 17.16% 30.75% -96.93%
Changes In Inventories Of
FG,WIP And Stock-In
Trade
-30.86 -6.99 -30.57 -20.59 -14.38
Changes In Inventories Of
FG,WIP And Stock-In
Trade
100.00% -77.35% 337.34% -32.65% -30.16%
Employee Benefit
Expenses
113.64 130.53 159.18 160.49 49.28
Employee Benefit
Expenses
100.00% 14.86% 21.95% 0.82% -69.29%
Finance Costs 56.88 71.07 87.73 100.81 21.11 Finance Costs 100.00% 24.95% 23.44% 14.91% -79.06%
Depreciation And
Amortisation Expenses
27.73 31.46 40.28 38.89 11.23
Depreciation And
Amortisation Expenses
100.00% 13.45% 28.04% -3.45% -71.12%
Other Expenses 101.88 114.81 123.75 130.92 41.7 Other Expenses 100.00% 12.69% 7.79% 5.79% -68.15%
Total Expenses 1,176.56 1,308.81 1,455.15 1,772.44 312.77 Total Expenses 100.00% 11.24% 11.18% 21.80% -82.35%
17. DETAILED TREND ANALYSIS – P&L STATEMENT
Profit/Loss Before
Exceptional,
ExtraOrdinary Items And
Tax
8.17 14.67 22.16 -27.44 9.07
Profit/Loss Before
Exceptional,
ExtraOrdinary Items And
Tax
100.00% 79.56% 51.06% -223.83% -133.05%
Exceptional Items 0 0 0 0 -121.67 Exceptional Items 0.00% 0.00% 0.00% 0.00% -121.67%
Profit/Loss Before Tax 8.17 14.67 22.16 -27.44 -112.6 Profit/Loss Before Tax 100.00% 79.56% 51.06% -223.83% 310.35%
Tax Expenses-Continued
Operations
Tax Expenses-Continued
Operations
Current Tax 2.59 3.42 19.96 17.27 0 Current Tax 100.00% 32.05% 483.63% -13.48% -100.00%
Less: MAT Credit
Entitlement
1.5 2.71 0 0 0
Less: MAT Credit
Entitlement
100.00% 80.67% -100.00% 0.00% 0.00%
Deferred Tax 2.8 4.03 -2.52 -1.53 2.36 Deferred Tax 100.00% 43.93% -162.53% -39.29% -254.25%
Tax For Earlier Years -0.03 0 0 0.41 0 Tax For Earlier Years 100.00% -100.00% #DIV/0! #DIV/0! -100.00%
Total Tax Expenses 3.86 4.74 17.44 16.15 2.36 Total Tax Expenses 100.00% 22.80% 267.93% -7.40% -85.39%
Profit/Loss After Tax And
Before ExtraOrdinary
Items
4.31 9.93 4.72 -43.59 -114.96
Profit/Loss After Tax And
Before ExtraOrdinary
Items
100.00% 130.39% -52.47% -1023.52% 163.73%
Profit/Loss From
Continuing Operations
4.31 9.93 4.72 -43.59 -114.96
Profit/Loss From
Continuing Operations
100.00% 130.39% -52.47% -1023.52% 163.73%
Profit Loss From
Discontinuing Operations
0 0 0 0 155.57
Profit Loss From
Discontinuing Operations
100.00% 0.00% 0.00% 0.00% 155.57%
Total Tax Expenses
Discontinuing Operations
0 0 0 0 14.16
Total Tax Expenses
Discontinuing Operations
100.00% 0.00% 0.00% 0.00% 14.16%
Net Profit Loss From
Discontinuing Operations
0 0 0 0 141.41
Net Profit Loss From
Discontinuing Operations
100.00% 0.00% 0.00% 0.00% 141.41%
Profit/Loss For The
4.31 9.93 4.72 -43.59 26.45
Profit/Loss For The
100.00% 130.39% -52.47% -1023.52% -160.68%
13-Mar 14-Mar 15-Mar 16-Mar Mar 17 13-Mar 14-Mar 15-Mar 16-Mar Mar 17
18. NOTES
• The operating incomes from operations have increased till FY 2016, which took, however further break down
shows that they are mainly because of revenue from subsidiary TIPL, revenue from their main divisions (Total
revenue less revenue from TIPL) has also decreased from FY2016 to FY2017 which shows lesser earning from the
falling demand of cranes and other equipment and degrading market share
• Revenue from other operations consisting of selling commissions, scrap sale, Duty incentives have also gone down
especially after dissociation of Machine rental business of TIPL.
• Total Expenses have increased throughout the year, but because of scaling down the business by sale of Caterpillar
dealership business, the cost of expenses have also come down in the FY2017.
• The Profit before Tax and Exceptional items were incremental and positive till FY 2015 and then the company
incurred losses in FY2016 because of increase in expenses and generation of lesser revenue, and further made a
small recovery in the FY2017.
• Huge amount of losses were incurred by writing off Trade receivables and Inventory (long payment and unused out
of date goods and spare parts were written off) in the last FY2017 because of which the PAT was reduce to INR -114
Crore.
• Sale of the Caterpillar Dealership business brought in some cash for the company from discontinued operations
and the company had made an overall profit of INR 26 Crore because of this big sale of it’s subsidiary
19. ANALYSIS OF P&L STATEMENT OF LAST 5 FY
-500.00
0.00
500.00
1,000.00
1,500.00
2,000.00
FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY2016-17
Total Revenue from Operations
Total Expenses
Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax
Profit/Loss From Continuing Operations
Profit/Loss From Discontinuing Operations
Profit/Loss For The Period
21. CONSOLIDATED CASH FLOW STATEMENT
(VALUES IN RUPEE. CRORE)
CONSOLIDATED CASH FLOW STATEMENT
PARTICULARS FY 2016-17 FY 2015-16 FY 2014-15 FY 2013-14 FY 2012-13
Net Profit/Loss Before
Extraordinary Items And Tax
-112.6 -27.44 22.16 14.67 8.17
Net CashFlow From Operating
Activities
-41.51 71.07 7.17 27.18 -21.56
Net Cash Used In Investing
Activities
321.78 -32.47 -39.36 -24.3 -45.53
Net Cash Used From Financing
Activities
-274.89 -44.83 25.83 -6.02 49.78
Net Inc/Dec In Cash And Cash
Equivalents
5.38 -6.23 6.36 -3.14 -17.31
Cash And Cash Equivalents Begin
of Year
9.54 37.8 44.38 47.52 64.83
Cash And Cash Equivalents End
Of Year
14.92 31.57 38.02 44.38 47.52
22. NOTES – CASH FLOW ANALYSIS
• From the Operating activities it can be seen that the
company has not done very well in generating money
from it’s operations. The company has to spend out from
it’s account in the operating activities due to decrease in
revenue collection and inventories of higher values being
written off, including Trade receivables/Advances/Claims.
• From the Investment activity cash flow, it can be seen
that there has been lesser investment on it’s assets.
Instead there has been accumulation of cash in the last
FY2017 because of sale of it’s subsidiary business
• From the financial activity cash flow, it can be seen that
the company has invested in getting itself free from all
the Short term and long term borrowings and financial
costs. This gives a short term relief from the borrowings
and the cash inflow from sale of it’s subsidiary has helped
in deleveraging the company.
-400
-300
-200
-100
0
100
200
300
400
FY 2016-
17
FY 2015-
16
FY 2014-
15
FY 2013-
14
FY 2012-
13
CASH FLOW ANALYSIS
Net CashFlow From Operating Activities
Net Cash Used In Investing Activities
Net Cash Used From Financing Activities
24. RATIO ANALYSIS
Liquidity Ratios
FY
2016-
17
FY
2015-
16
FY
2014-
15
FY
2013-
14
FY
2012-
13
Current Ratio 1.32 0.73 0.76 0.9 0.8
Quick Ratio 0.86 1.48 1.82 1.53 1.52
Debtors
Turnover Ratio
1.19 4.86 5.22 5.22 5.31
Stock to
Working Capital
Ratio
1.38 3.28 2.87 3.41 3.49
Net Working
Capital Ratio
0.36 0.18 0.18 0.31 0.30
0
1
2
3
4
5
6
FY2016-17 FY 2015-16 FY 2014-15 FY 2013-14 FY 2012-13
LIQUIDITY RATIO ANALYSIS
Current Ratio Quick Ratio
Debtors Turnover Ratio Stock to Working Capital Ratio
Net Working Capital Ratio
25. RATIO ANALYSIS NOTES
• The Working Capital is increasing every Financial Year, but the main concern is increase in the current liabilities and decrease in
the current asset, which can be observed in the shown Liquidity Ratios.
The Current Ratio shows insufficient liquidity of the company for day to day work and shows the ability of the company
to meet it’s current obligations of the business and the interest of the creditors are least protected.
The Quick ratio seems to be satisfying, but the point to be noted is high value of Trade receivables as compared to the
current cash and cash equivalents, which shows lesser liquidity of the debtors of the company (i.e. it has slow paying,
doubt full and long duration outstanding debtors)
The decreasing value of Debtor’s Turnover Ratio shows deteriorating collection period from their debtors.
The decreasing Stock to Working Capital Ratio shows the decreasing liquid assets in the company to take care of current
liabilities.
Net Working Capital Ratio which deteriorated in the middle years has improved slightly as the borrowings have lowered,
and now the company seems to have the ability to meet it’s current obligations. But still the values are very low which
needs to be improved in the further coming years as the other liquidity ratio shows insufficient liquidity of the company.
26. RATIO ANALYSIS
0
0.5
1
1.5
2
2.5
3
3.5
4
FY 2016-17 FY 2015-16 FY 2014-15 FY 2013-14 FY 2012-13
LEVERAGE RATIO
Debt Equity Ratio
Proprietory Ratio
Debt Ratio
Capital employed to Net Worth Ratio
Solvency Ratio
Fixed Asset Ratio
LEVERAGE RATIOS
FY
2016-17
FY
2015-16
FY
2014-15
FY
2013-14
FY
2012-13
Debt Equity Ratio 0.16 2.58 2.01 1.55 1.41
Proprietory Ratio 0.10 0.50 0.52 0.43 0.43
Debt Ratio 0.17 0.01 0.02 0.02 0.02
Capital employed
to Net Worth
Ratio
1.16 3.58 3.01 2.55 2.41
Solvency Ratio 1.67 3.28 2.44 2.24 2.32
Fixed Asset Ratio 3.12 0.45 0.52 0.62 0.69
27. RATIO ANALYSIS NOTES
It is observed that the share capital of the company has always remained in the same level, and the Short term and long term
borrowing have increased every year till last year which dropped to a lowest level by selling off the dealership business, which means
that the company have very lower level of outsider’s finances with very minimal increase in it’s Net Worth.
• The Equity value or the Net Worth of the company has remained almost constant through the last 5 financial year, and the trend of
the Debt Equity ratio shows increase in the Outsider’s debt and then sudden dip in the same in the last FY2017 which shows that
now the company has lower outsider’s borrowings which can be interpreted that the company is in a slightly better position after
the sale of it’s dealership business.
• The Proprietary ratio also increased to decrease from FY2016. This shows that the liabilities of the company has increased and the
assets have decreased which can effect the interest of the creditors of the company
• The Debt ratio shows that the outside lender’s finance had been constant, but have increased in the last FY2017. Although the
borrowings have decreased, but the company is still dependent on outsider’s borrowings and the Net Asset needs to be increased
to be more self dependent.
• The Capital employed to Net worth ratio was increasing each year, which got affected by the sale of the Dealership business, which
shows that for each rupee contribution of the owner, the total contribution of the lenders and owners have decreased.
• Solvency Ratio has deteriorated and the value has continuously gone down throughout the last five years which shows that the
company’s solvency position is not good.
• Fixed Asset Ratio has gone over 1 which is not good in the last FY 2017. The value of the fixed assets have gone down and the value
of the capital employed have considerably reduced as the long term and short term borrowings have reduced and the dependency
on short term borrowings is more currently which is bad for business as it is unsustainable in the long run.
28. RATIO ANALYSIS
ACTIVITY/TURN
OVER RATIO
FY 2016-
17
FY
2015-
16
FY
2014-
15
FY
2013-
14
FY
2012-
13
Inventory
Turnover Ratio
1.8 3.97 3.74 3.65 3.55
Debtors
Turnover Ratio
1.19 4.86 5.22 5.22 5.31
Creditors
Turnover Ratio
0.45 4.61 6.24 3.86 5.38
Working Capital
Turnover Ratio
0.20 15.49 10.87 4.82 4.47
Investments
Turnover Ratio
1.8 3.97 3.74 3.65 3.55
Fixed Assets
Turnover Ratio
1.21 3.62 3.35 3.21 3.05
Total Assets
Turnover Ratio
0.86 1.76 1.54 1.48 1.39 0
2
4
6
8
10
12
14
16
18
FY 2016-17 FY 2015-16 FY 2014-15 FY 2013-14 FY 2012-13
ACTIVITY RATIO Inventory Turnover
Ratio
Debtors Turnover
Ratio
Creditors Turnover
Ratio
Working Capital
Turnover Ratio
Investments Turnover
Ratio
Fixed Assets Turnover
Ratio
29. RATIO ANALYSIS NOTES
• Inventory Turnover Ratio was improving every year, but it has dropped down to almost half in the last
FY2017 which shows that the no of days of holding of it’s inventory has increased. This may be because of
decrease in sales due to poor demand of it’s product against it’s sales projections. This effect can also be
seen in Debtor’s Turnover Ratio, showing poor collection from current debts (shown in previous slides).
• The decreasing value of Debtor’s Turnover Ratio shows deteriorating collection period from their debtors.
The company must have to bear the greater expense of collection.
• The Creditors Turnover Ratio has also decreased, which shows the company’s credit payment cycle has
considerably decreased and it will be having higher inability to meet it’s obligation in time. Maybe because
of this the company’s dependency on short term borrowings have increased which is not good for long run
in the business.
• The Working Capital Turnover Ratio at first increased abnormally till FY2016 and then dipped below 1,
which shows inefficient utilization of working capital.
• The values of Fixed Asset Turnover Ratio have increased slightly till FY2016 and then decreased to almost
half which shows underutilization of fixed assets. This may be linked to the under-utilization of the
Kharagpur plant for their road construction equipment and other important assets used inefficiently.
• Total Asset Turnover Ratio also follows the same trend and shows insufficient use of the total assets.
30. RATIO ANALYSIS
General
Profitability
Ratio
FY
2016-17
FY
2015-
16
FY
2014-
15
FY
2013-
14
FY
2012-
13
Gross Profit
Ratio
5.36% 3.72% 7.07% 5.70% 4.60%
Net Profit
Ratio
8.58% -2.51% 0.32% 0.76% 0.37%
Operating
Profit Margin
9.00% 5.96% 9.80% 8.09% 6.96%
Return On
Asset
2.60% -3.19% 0.37% 0.80% 0.39%
ROE 8.82%
-
14.12%
1.36% 2.75% 1.22%
Return on
Invested
Capital
6.56% 1.41% 5.82% 1.12% 0.52%
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
FY 2016-
17
FY 2015-
16
FY 2014-
15
FY 2013-
14
FY 2012-
13
PROFITABILITY RATIOS
Gross Profit Ratio Net Profit Ratio
Operating Profit Margin Return On Asset
ROE Return on Invested Capital
31. RATIO ANALYSIS NOTES
• The Gross Profit Ratio increased till FY 2015 and then started to show a dip. In the last FY2017, the value increased
because of profit addition from discontinued operation (Sale of subsidiary business)
• The Net Profit Ratio was having very less value till FY 2015 because of higher value of Sales and lower PAT, in the next year
the NPR was in negative because of loss made by the company, however in the FY 2017, the PAT value was higher because
of high profit from discontinued operation because of which the value increased to more than 8%. Next year the value is
expected to take a dip.
• The Operating Profit Margin has been increasing and decreasing throughout the last five years. The value decreased in the
FY2016, however it again increased showing the company is making some profit after taking care of the variable costs and
it is increasing.
• The Return on Asset Margin have decreased to negative till the FY 2016, however it increased to ever high in these five
years, showing that the profitability of the company has increased. However further analysis shows that the increase in
earning in the last FY2017 was because of discontinued operation of sale of it’s subsidiary business and decrease in total
assets the company owns, because of which the value of ROA increased.
• The Return on Equity Margin were not of high values and took a big dip in negative number in the FY2016 because of the
loss the company made. However in the year 2017 the company had a profit because of discontinued operations because
of which the PAT value was higher and the Net worth of the company had slightly improved, resulting in belief of higher
return on shareholder’s investment in the company.
• The Return on Invested Capital have increased after going down in FY2016 in between these five years showing better
profit return on the capital employed.
32. SHORT TERM AND LONG TERM POSITION
ANALYSIS
• SHORT TERM STATUS OF TIL LIMITED
The company’s short term position does not seems to be in a very good position.
The borrowings have decreased, but the liquidity ratios shows that the company
must be facing problems to meet it’s current obligations. Not only the current
assets are decreasing to support the short term liabilities, the debt collection
period as well as the credit pay off periods are not satisfactory.
It is also facing problems in decreasing sales because of uncertain market, which is
reflecting in the Inventory turnover ratio and showing inventory position, which is
not in good shape. Also there is inefficiency in management of working capital and
inefficient utilization of the assets available.
The company must be working on improving it’s position after deleveraging itself
by disassociating it with it’s dealership business of Caterpillar Inc. and
concentrating on it’s core competency in the business of manufacturing and sale of
material handling equipments.
33. SHORT TERM AND LONG TERM POSITION
ANALYSIS
• LONG TERM STATUS OF TIL LIMITED
The company has shown that it is concentrating on it’s core business of Material
Handling Equipment after selling off it’s dealership subsidiary to GMPL. But it is still
holding on with the road construction equipment business which has not been a
success.
The company seems of becoming more dependent on short term borrowings with
reduction of assets. The profit ratios shows that the profitability position was not so
good and the company was making losses in the FY 2016. However it improved in
FY 2017 only because of sale of it’s subsidiary company which acted as oxygen in
the form of cash which was necessary to settle the debs the company was under.
The solvency ratio numbers does not project good image of the long term position
of the company, it has been unable to meet it’s debt obligation and increasing risk
of the company to become insolvent. The company must be taking appropriate
actions to improve it’s solvency position by settling most of the short term and long
term loans after sale of their subsidiary business.
34. SOME OTHER IMPORTANT VALUES
PARTICUL
ARS
2016-
17
2015-
16
2014-
15
2013-
14
2012-
13
TURNOVER 344.07 1778.60 1507.5
8
1347.7
2
1213.9
3
NET
WORTH
291.19 176.26 242.55 272.44 271.84
SALES 329.45 331.72 341.66 295.05 285.14
PBT 137.89 (660.2) (290.1) 3.71 5
PAT 121.37 (662.9) (286.2) 2.51 2.67
OPERATING
COST
291.66 1671.63 1367.42 1237.74 1119.68
WORKING
CAPITAL
106.02 72.64 77.78 153.77 152.46
-1000
-500
0
500
1000
1500
2000
2016-17 2015-16 2014-15 2013-14 2012-13
CHART TITLE
TURNOVER NET WORTH SALES
PBT PAT OPERATING COST
WORKING CAPITAL*ALL THE VALUES IN INR CRORE
35. FUTURE TREND ANALYSIS
Jun '17 Mar '17 Dec '16 Sep '16 Jun '16
Net Sales/Income from operations 72.73 100.83 60.01 69.61 75.02
Other Operating Income -- -- 1.46 0.4 0.84
Total Income From Operations 72.73 100.83 61.47 70.01 75.86
EXPENDITURE
Consumption of Raw Materials 37.3 45.4 31.15 43.72 48.39
Purchase of Traded Goods 1.81 14.52 5.65 10.77 4.26
Increase/Decrease in Stocks 0.94 -5.72 -2.67 -9.42 3.43
Employees Cost 13.24 12.59 11.72 12.18 12.58
Depreciation 2.9 2.95 2.72 2.81 2.75
Other Expenses 12 1.63 9.33 12.99 17.4
P/L Before Other Inc. , Int., Excpt. Items
& Tax
4.54 29.46 3.57 -3.04 -12.95
Other Income 1.04 9.15 0.6 1.19 0.24
P/L Before Int., Excpt. Items & Tax 5.58 38.61 4.17 -1.85 -12.71
Interest 3.16 3.01 3.72 3.89 10.49
P/L Before Exceptional Items & Tax 2.42 35.6 0.45 -5.74 -23.2
Exceptional Items -- -123.37 -- -- 254.15
P/L Before Tax 2.42 -87.77 0.45 -5.74 230.95
Tax 0.61 -33.62 0.3 0.38 49.46
P/L After Tax from Ordinary Activities 1.81 -54.15 0.15 -6.12 181.49
Net Profit/(Loss) For the Period 1.81 -54.15 0.15 -6.12 181.49
Equity Share Capital 10.03 10.03 10.03 10.03 10.03
36. FUTURE TREND ANALYSIS
• The income from operations have reduced as compared to the previous quarter, however when compared
to the April-June 2016 quarter, it has improved. The CMD has claimed in one of his interview that the
company is having total orders worth INR180 Crore in hand, which we can only evaluate when the next
quarter’s result is declared by the company.
• The Cost of Sales have also reduced the last quarter which shows that the company is trying to achieve more
at lower cost.
• The PBT and the PAT values have been better than any other last five quarter which shows that the company
is trying to come out of it’s previous performance and we have to wait and watch how it does in the next
coming years to improve it’s solvency.
• The EPS Values have also shown an improving trend and this will boost the shareholder’s investment in the
company.
FY MAR-13 MAR-14 MAR-15 MAR-16 MAR-17
EPS
(RUPEE)
4.3 9.9 4.7 -43.46 26.37
37. FUTURE TREND ANALYSIS
• The Share price trend in the NSE and the BSE
shows that the value of the shares have increased
November-December 2016 and is still on the
increasing trend. The values in both the stock
markets are near the range of Rs. 512 – Rs. 518
each share. This shows that the investors are again
developing trust on the company, which might
have been possible because of change in it’s
strategy to focus on no-institutional customers
more, and introduction of new designs in the old
crane models and introduction of few new models
in the segments where it was not present before.
39. STRENGTH
• Increase in Net-worth and Turnover every year
• Increase in Share prices
• Improving EPS
• Inflow of cash from investing activity which provided the much
needed cash required to improve it’s profit and get rid of most of the
debts.
40. WEAKNESS
• The Debt must have reduced but the assets have also reduce and is
not sufficient to take care of liabilities, can be seen from Proprietary
ratio.
• It is more dependent on outsider’s fund, can be seen from Debt Ratio
and Fixed Asset ratio
• Inventory Turnover Ratio shows that the conversion of inventory to
finished good is deteriorating, possible reasons of decrease in sales.
• Debtor’s Turnover Ratio shows deteriorating collection period from
their debtors
41. OPPORTUNITY
• Sale of it’s subsidiary has helped the company to deleverage itself
from outstanding liabilities
• Profit from Discontinued operations has saved the company from
making losses for continuous 2 years.
• Decrease in Debt Equity ratio shows lesser debt
• The profit ratios have improved as the company made profit this year
and the share prices have increased.
42. THREAT
• Cash flow from operating activity has dipped into negative value and cash
generation from operation needs immediate attention.
• Insufficient liquidity to take care of current liabilities, can be seen from the
liquidity ratios
• Decrease in borrowings after disassociation with it’s subsidiary from Net
Working Capital ratio can be found out
• Debtor’s Turnover Ratio shows deteriorating collection period from their
debtors.
• Solvency Ratio shows deteriorating solvency position of the company.
• Creditors Turnover Ratio has also decreased, which shows the company’s
credit payment cycle has decreased and it may face problems in releasing
payment to suppliers and has forced the company to take short term loans.
43. CONCLUSION
• The company is trying it’s best to come out of it’s past loss making conditions
and has been able to gain the confidence of it’s shareholders which is evident
from the rising Share prices in both the NSE and BSE market. The net worth of
the company is also stable which gives one more reason for the shareholders
to maintain their belief on the company for their wealth maximization.
• The company got a relief from it’s losses and increasing debts by selling off it’s
successful Subsidiary of Caterpillar dealership business. The company is
targeting a turnover of 400Crore in the FY2017-18, however looking at the
current market conditions and demand of cranes and TIL Limited’s
unsuccessful road construction equipment it is too early to confirm that the
company will be successful to reach the set target.
• However with the current order holdings and it’s successful Reachstacker
machine and it’s new initiative for reinventing itself it cannot be denied that
the company can cross the 300 crore turnover mark.
• The company has the potential to be more profitable and shareholders should
invest in TIL Limited’s share.