BOMBAY DYEING 2020-21 Annual Report Analysis

Wed, 31 Mar

BOMBAY DYEING 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.

BOMBAY DYEING Income Statement Analysis

• Operating income during the year fell 37.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 74.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.9% in FY21 as against 17.2% in FY20.
• Depreciation charges increased by 1.8% and finance costs increased by 6.2% YoY, respectively.
• Other income declined by 34.0% YoY.
• Net profit for the year declined by 243.6% YoY.
• Net profit margins during the year declined from 17.2% in FY20 to 39.3% in FY21.

BOMBAY DYEING Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	18,947	11,935	-37.0%
Other income	Rs m	500	330	-34.0%
Total Revenues	Rs m	19,448	12,265	-36.9%
Gross profit	Rs m	3,268	823	-74.8%
Depreciation	Rs m	331	337	1.8%
Interest	Rs m	5,538	5,884	6.2%
Profit before tax	Rs m	-2,101	-5,068	141.2%
Tax	Rs m	-5,369	-374	-93.0%
Profit after tax	Rs m	3,268	-4,693	-243.6%
Gross profit margin	%	17.2	6.9
Effective tax rate	%	255.6	7.4
Net profit margin	%	17.2	-39.3

Emerging Opportunity: Bluechip Bull Run

BOMBAY DYEING Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 23 billion as compared to Rs 14 billion in FY20, thereby witnessing an increase of 67.5%.
• Long-term debt down at Rs 25 billion as compared to Rs 33 billion during FY20, a fall of 25.1%.
• Current assets fell 8% and stood at Rs 30 billion, while fixed assets rose 5% and stood at Rs 11 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 41 billion as against Rs 43 billion during FY20, thereby witnessing a fall of 5%.

BOMBAY DYEING Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	869	-1,682	-293.5
Current Liabilities	Rs m	13,795	23,112	67.5
Long-term Debt	Rs m	33,366	25,007	-25.1
Total Liabilities	Rs m	42,694	40,702	-4.7
Current assets	Rs m	32,401	29,862	-7.8
Fixed Assets	Rs m	10,293	10,840	5.3
Total Assets	Rs m	42,694	40,702	-4.7

BOMBAY DYEING Cash Flow Statement Analysis

• BOMBAY DYEING's cash flow from operating activities (CFO) during FY21 stood at Rs 6 billion, an improvement of 509.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs -281 million net cash flows seen during FY20.

BOMBAY DYEING 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	991	6,037	509.1%
Cash Flow from Investing Activities	Rs m	2,706	1,277	-52.8%
Cash Flow from Financing Activities	Rs m	-3,978	-5,911	-
Net Cash Flow	Rs m	-281	1,403	-

Current Valuations for BOMBAY DYEING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -22.7, an decline from the EPS of Rs 15.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 70.2, stands at -3.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -8.6 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at -3.2 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	91.7	57.8
TTM Earnings per share	Rs	15.8	-22.7
Diluted earnings per share	Rs	15.8	-22.7
Price to Cash Flow	x	2.6	-3.2
TTM P/E ratio	x	2.9	-3.1
Price / Book Value ratio	x	21.7	-8.2
Market Cap	Rs m	18,898	13,843
Dividends per share (Unadj.)	Rs	0.2	0.0

Ratio Analysis for BOMBAY DYEING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x 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 0.1x during FY21, from 0.6x 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 279.0% during FY21, from 376.0% 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 3.5% during FY21, from 10.0% 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 2.9% during FY21, from 20.6% 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	1.3
Debtors’ Days	Days	14	20
Interest coverage	x	0.6	0.1
Debt to equity ratio	x	38.4	-14.9
Return on assets	%	20.6	2.9
Return on equity	%	376.0	279.0
Return on capital employed	%	10.0	3.5

To see how BOMBAY DYEING has performed over the last 5 years, please visit here.

BOMBAY DYEING Share Price Performance

Over the last one year, BOMBAY DYEING share price has moved up from Rs 45.8 to Rs 70.2, registering a gain of Rs 24.4 or around 53.2%.

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

(To know more, check out historical annual results for BOMBAY DYEING and quarterly results for BOMBAY DYEING)

Read: Latest Annual Report Analysis of BOMBAY DYEING