BHARAT ELECTRONICS 2022-23 Annual Report Analysis

Sun, 6 Aug

BHARAT ELECTRONICS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

BHARAT ELECTRONICS Income Statement Analysis

• Operating income during the year rose 14.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.4% in FY23 as against 21.6% in FY22.
• Depreciation charges increased by 1.7% and finance costs increased by 115.9% YoY, respectively.
• Other income grew by 78.5% YoY.
• Net profit for the year grew by 27.7% YoY.
• Net profit margins during the year grew from 15.3% in FY22 to 17.0% in FY23.

BHARAT ELECTRONICS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	153,682	176,462	14.8%
Other income	Rs m	2,538	4,529	78.5%
Total Revenues	Rs m	156,220	180,991	15.9%
Gross profit	Rs m	33,221	39,583	19.1%
Depreciation	Rs m	4,011	4,079	1.7%
Interest	Rs m	86	185	115.9%
Profit before tax	Rs m	31,662	39,849	25.9%
Tax	Rs m	8,118	9,782	20.5%
Profit after tax	Rs m	23,545	30,067	27.7%
Gross profit margin	%	21.6	22.4
Effective tax rate	%	25.6	24.5
Net profit margin	%	15.3	17.0

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

BHARAT ELECTRONICS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 205 billion as compared to Rs 196 billion in FY22, thereby witnessing an increase of 4.7%.
• Current assets rose 10% and stood at Rs 299 billion, while fixed assets fell 22% and stood at Rs 46 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 346 billion as against Rs 333 billion during FY22, thereby witnessing a growth of 4%.

BHARAT ELECTRONICS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	122,859	135,820	10.5
Current Liabilities	Rs m	195,810	205,088	4.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	332,896	345,511	3.8
Current assets	Rs m	272,937	299,033	9.6
Fixed Assets	Rs m	59,959	46,478	-22.5
Total Assets	Rs m	332,896	345,511	3.8

BHARAT ELECTRONICS Cash Flow Statement Analysis

• BHARAT ELECTRONICS's cash flow from operating activities (CFO) during FY23 stood at Rs 12 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 28 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -13 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 26 billion from the Rs -17 billion net cash flows seen during FY22.

BHARAT ELECTRONICS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	42,072	11,552	-72.5%
Cash Flow from Investing Activities	Rs m	-48,717	27,820	-
Cash Flow from Financing Activities	Rs m	-10,776	-13,121	-
Net Cash Flow	Rs m	-17,420	26,251	-

Current Valuations for BHARAT ELECTRONICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.1, an decline from the EPS of Rs 9.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 127.6, stands at 30.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 5.3 times.
• The company's price to cash flow (P/CF) ratio stood at 19.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	63.1	24.1
TTM Earnings per share	Rs	9.7	4.1
Diluted earnings per share	Rs	3.2	4.1
Price to Cash Flow	x	18.6	19.8
TTM P/E ratio	x	21.8	30.0
Price / Book Value ratio	x	3.5	5.0
Market Cap	Rs m	424,576	676,581
Dividends per share (Unadj.)	Rs	4.5	1.8

Ratio Analysis for BHARAT ELECTRONICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.4x during FY22. 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 216.9x during FY23, from 371.3x during FY22. 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.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 22.1% during FY23, from 19.2% during FY23. 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 29.5% during FY23, from 25.8% during FY22. 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 improved and stood at 8.8% during FY23, from 7.1% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.4	1.5
Debtors’ Days	Days	1,451	1,452
Interest coverage	x	371.3	216.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.1	8.8
Return on equity	%	19.2	22.1
Return on capital employed	%	25.8	29.5

To see how BHARAT ELECTRONICS has performed over the last 5 years, please visit here.

BHARAT ELECTRONICS Share Price Performance

Over the last one year, BHARAT ELECTRONICS share price has moved up from Rs 92.0 to Rs 127.6, registering a gain of Rs 35.6 or around 38.7%.

Overall, the S&P BSE SENSEX is up 12.6% over the year.

(To know more, check out historical annual results for BHARAT ELECTRONICS and quarterly results for BHARAT ELECTRONICS)