BALMER LAWRIE 2020-21 Annual Report Analysis

Wed, 31 Mar

BALMER LAWRIE has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

BALMER LAWRIE Income Statement Analysis

• Operating income during the year fell 0.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 38.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.4% in FY21 as against 12.0% in FY20.
• Depreciation charges increased by 6.4% and finance costs decreased by 19.9% YoY, respectively.
• Other income grew by 38.4% YoY.
• Net profit for the year declined by 30.1% YoY.
• Net profit margins during the year declined from 7.7% in FY20 to 5.4% in FY21.

BALMER LAWRIE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	15,344	15,290	-0.4%
Other income	Rs m	552	764	38.4%
Total Revenues	Rs m	15,896	16,053	1.0%
Gross profit	Rs m	1,849	1,134	-38.7%
Depreciation	Rs m	517	550	6.4%
Interest	Rs m	149	119	-19.9%
Profit before tax	Rs m	1,734	1,228	-29.2%
Tax	Rs m	553	402	-27.3%
Profit after tax	Rs m	1,182	826	-30.1%
Gross profit margin	%	12.0	7.4
Effective tax rate	%	31.9	32.7
Net profit margin	%	7.7	5.4

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BALMER LAWRIE Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 5 billion as compared to Rs 5 billion in FY20, thereby witnessing an increase of 7.3%.
• Long-term debt down at Rs 933 million as compared to Rs 941 million during FY20, a fall of 0.8%.
• Current assets rose 3% and stood at Rs 12 billion, while fixed assets rose 1% and stood at Rs 12 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 24 billion as against Rs 23 billion during FY20, thereby witnessing a growth of 2%.

BALMER LAWRIE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	15,538	15,420	-0.8
Current Liabilities	Rs m	4,921	5,279	7.3
Long-term Debt	Rs m	941	933	-0.8
Total Liabilities	Rs m	23,338	23,792	1.9
Current assets	Rs m	11,507	11,817	2.7
Fixed Assets	Rs m	11,832	11,975	1.2
Total Assets	Rs m	23,338	23,792	1.9

BALMER LAWRIE Cash Flow Statement Analysis

• BALMER LAWRIE's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 29.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -805 million, an improvement of 33.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion, an improvement of 8% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 146 million from the Rs -340 million net cash flows seen during FY20.

BALMER LAWRIE Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	1,886	2,436	29.2%
Cash Flow from Investing Activities	Rs m	-604	-805	-
Cash Flow from Financing Activities	Rs m	-1,622	-1,486	-
Net Cash Flow	Rs m	-340	146	-

Current Valuations for BALMER LAWRIE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.8, an decline from the EPS of Rs 6.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 129.0, stands at 26.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 15.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	89.7	89.4
TTM Earnings per share	Rs	6.9	4.8
Diluted earnings per share	Rs	6.9	4.8
Price to Cash Flow	x	8.0	15.5
TTM P/E ratio	x	11.5	26.7
Price / Book Value ratio	x	1.6	1.4
Market Cap	Rs m	24,099	21,324
Dividends per share (Unadj.)	Rs	7.5	6.0

Ratio Analysis for BALMER LAWRIE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY21, from 2.3x during FY20. 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 11.3x during FY21, from 12.7x during FY20. 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 declined and down at 5.4% during FY21, from 7.6% during FY21. 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 8.2% during FY21, from 11.4% during FY20. 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 4.0% during FY21, from 5.7% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	2.3	2.2
Debtors’ Days	Days	651	687
Interest coverage	x	12.7	11.3
Debt to equity ratio	x	0.1	0.1
Return on assets	%	5.7	4.0
Return on equity	%	7.6	5.4
Return on capital employed	%	11.4	8.2

To see how BALMER LAWRIE has performed over the last 5 years, please visit here.

BALMER LAWRIE Share Price Performance

Over the last one year, BALMER LAWRIE share price has moved up from Rs 79.5 to Rs 129.0, registering a gain of Rs 49.5 or around 62.3%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for BALMER LAWRIE and quarterly results for BALMER LAWRIE)

Read: Latest Annual Report Analysis of BALMER LAWRIE