BALMER LAWRIE 2022-23 Annual Report Analysis

Thu, 21 Sep

BALMER LAWRIE 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.

BALMER LAWRIE Income Statement Analysis

• Operating income during the year rose 12.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.1% in FY23 as against 7.9% in FY22.
• Depreciation charges increased by 0.4% and finance costs increased by 32.0% YoY, respectively.
• Other income grew by 12.5% YoY.
• Net profit for the year grew by 20.5% YoY.
• Net profit margins during the year grew from 4.3% in FY22 to 4.6% in FY23.

BALMER LAWRIE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	20,553	23,215	12.9%
Other income	Rs m	446	502	12.5%
Total Revenues	Rs m	21,000	23,717	12.9%
Gross profit	Rs m	1,615	1,888	16.9%
Depreciation	Rs m	566	568	0.4%
Interest	Rs m	136	179	32.0%
Profit before tax	Rs m	1,360	1,643	20.8%
Tax	Rs m	473	574	21.3%
Profit after tax	Rs m	887	1,069	20.5%
Gross profit margin	%	7.9	8.1
Effective tax rate	%	34.8	35.0
Net profit margin	%	4.3	4.6

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BALMER LAWRIE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 22.0%.
• Long-term debt down at Rs 824 million as compared to Rs 883 million during FY22, a fall of 6.7%.
• Current assets rose 10% and stood at Rs 13 billion, while fixed assets rose 7% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 27 billion as against Rs 24 billion during FY22, thereby witnessing a growth of 9%.

BALMER LAWRIE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	15,870	16,807	5.9
Current Liabilities	Rs m	5,264	6,421	22.0
Long-term Debt	Rs m	883	824	-6.7
Total Liabilities	Rs m	24,453	26,617	8.8
Current assets	Rs m	12,153	13,419	10.4
Fixed Assets	Rs m	12,300	13,199	7.3
Total Assets	Rs m	24,453	26,617	8.8

BALMER LAWRIE Cash Flow Statement Analysis

• BALMER LAWRIE's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 8,918.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -483 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 124 million from the Rs 121 million net cash flows seen during FY22.

BALMER LAWRIE 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	23	2,078	8,918.1%
Cash Flow from Investing Activities	Rs m	1,370	-483	-
Cash Flow from Financing Activities	Rs m	-1,272	-1,471	-
Net Cash Flow	Rs m	121	124	2.6%

Current Valuations for BALMER LAWRIE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.2, an improvement from the EPS of Rs 5.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 153.9, stands at 24.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 12.4 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	120.2	135.8
TTM Earnings per share	Rs	5.2	6.2
Diluted earnings per share	Rs	5.2	6.2
Price to Cash Flow	x	13.3	12.4
TTM P/E ratio	x	21.6	24.2
Price / Book Value ratio	x	1.4	1.2
Market Cap	Rs m	22,466	20,277
Dividends per share (Unadj.)	Rs	6.5	7.5

Ratio Analysis for BALMER LAWRIE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY23, from 2.3x 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 10.2x during FY23, from 11.0x 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 6.4% during FY23, from 5.6% 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 10.3% during FY23, from 8.9% 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 4.7% during FY23, from 4.2% 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	2.3	2.1
Debtors’ Days	Days	559	567
Interest coverage	x	11.0	10.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	4.2	4.7
Return on equity	%	5.6	6.4
Return on capital employed	%	8.9	10.3

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 115.8 to Rs 153.9, registering a gain of Rs 38.2 or around 33.0%.

Overall, the S&P BSE SENSEX is up 10.9% over the year.

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