Universal Corporation (UVV) has reported 31.47 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $32.87 million, or $1.64 a share in the quarter, compared with $47.96 million, or $1.72 a share for the same period last year. Revenue during the quarter dropped 19.15 percent to $650.03 million from $803.98 million in the previous year period. Gross margin for the quarter expanded 80 basis points over the previous year period to 18.34 percent. Total expenses were 90.80 percent of quarterly revenues, up from 89.99 percent for the same period last year. That has resulted in a contraction of 80 basis points in operating margin to 9.20 percent.
Operating income for the quarter was $59.82 million, compared with $80.44 million in the previous year period.
Operating cash flow improves significantly
Universal Corporation has generated cash of $250.32 million from operating activities during the year, up 34.19 percent or $63.78 million, when compared with the last year. The company has spent $33.85 million cash to meet investing activities during the year as against cash outgo of $50.93 million in the last year. It has incurred net capital expenditure of $33.46 million on net basis during the year, down 24.26 percent or $10.71 million from year ago.
The company has spent $251.24 million cash to carry out financing activities during the year as against cash outgo of $64.65 million in the last year period.
Cash and cash equivalents stood at $283.99 million as on Mar. 31, 2017, down 11.10 percent or $35.45 million from $319.45 million on Mar. 31, 2016.
Working capital declines
Universal Corporation has witnessed a decline in the working capital over the last year. It stood at $1,293.40 million as at Mar. 31, 2017, down 7.10 percent or $98.87 million from $1,392.28 million on Mar. 31, 2016. Current ratio was at 5.83 as on Mar. 31, 2017, down from 6.65 on Mar. 31, 2016.
Debt comes down marginally
Universal Corporation has recorded a decline in total debt over the last one year. It stood at $427.87 million as on Mar. 31, 2017, down 1.54 percent or $6.69 million from $434.56 million on Mar. 31, 2016. Total debt was 20.15 percent of total assets as on Mar. 31, 2017, compared with 19.46 percent on Mar. 31, 2016. Debt to equity ratio was at 0.32 as on Mar. 31, 2017, up from 0.30 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 15.56 for the quarter from 20.44 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
