BOMBAY DYEING 2021-22 Annual Report Analysis

Wed, 8 Jun

BOMBAY DYEING has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

BOMBAY DYEING Income Statement Analysis

• Operating income during the year rose 67.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 199.9% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 4.2% in FY22 as against 7.0% in FY21.
• Depreciation charges decreased by 2.8% and finance costs decreased by 10.9% YoY, respectively.
• Other income grew by 227.2% YoY.
• Net profit for the year declined by 1.8% YoY.
• Net profit margins during the year grew from 39.3% in FY21 to 23.0% in FY22.

BOMBAY DYEING Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	11,934	20,009	67.7%
Other income	Rs m	323	1,056	227.2%
Total Revenues	Rs m	12,257	21,066	71.9%
Gross profit	Rs m	833	-832	-199.9%
Depreciation	Rs m	337	328	-2.8%
Interest	Rs m	5,884	5,240	-10.9%
Profit before tax	Rs m	-5,065	-5,344	5.5%
Tax	Rs m	-374	-739	97.4%
Profit after tax	Rs m	-4,691	-4,605	-1.8%
Gross profit margin	%	7.0	-4.2
Effective tax rate	%	7.4	13.8
Net profit margin	%	-39.3	-23.0

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BOMBAY DYEING Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 18 billion as compared to Rs 23 billion in FY21, thereby witnessing an decrease of -21.4%.
• Long-term debt stood at Rs 31 billion as compared to Rs 25 billion during FY21, a growth of 25.9%.
• Current assets fell 12% and stood at Rs 26 billion, while fixed assets fell 11% and stood at Rs 10 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 36 billion as against Rs 41 billion during FY21, thereby witnessing a fall of 12%.

BOMBAY DYEING Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-1,682	-7,306	334.3
Current Liabilities	Rs m	23,101	18,150	-21.4
Long-term Debt	Rs m	25,007	31,496	25.9
Total Liabilities	Rs m	40,713	35,877	-11.9
Current assets	Rs m	29,829	26,203	-12.2
Fixed Assets	Rs m	10,883	9,674	-11.1
Total Assets	Rs m	40,713	35,877	-11.9

BOMBAY DYEING Cash Flow Statement Analysis

• BOMBAY DYEING's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 60 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -3 billion, an improvement of 55% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 3 billion from the Rs 2 billion net cash flows seen during FY21.

BOMBAY DYEING Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	6,037	5,224	-13.5%
Cash Flow from Investing Activities	Rs m	1,406	60	-95.7%
Cash Flow from Financing Activities	Rs m	-5,911	-2,682	-
Net Cash Flow	Rs m	1,531	2,601	69.9%

Current Valuations for BOMBAY DYEING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -22.3, an improvement from the EPS of Rs -22.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 116.5, stands at -5.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -3.3 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at -4.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	57.8	96.9
TTM Earnings per share	Rs	-22.7	-22.3
Diluted earnings per share	Rs	-22.7	-22.3
Price to Cash Flow	x	-3.3	-4.7
TTM P/E ratio	x	-3.1	-5.2
Price / Book Value ratio	x	-8.2	-2.7
Market Cap	Rs m	13,843	20,065
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BOMBAY DYEING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY22, from 1.3x during FY21. 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 0.0x during FY22, from 0.1x during FY21. 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 63.0% during FY22, from 278.8% during FY22. 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 -0.4% during FY22, from 3.5% during FY21. 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 1.8% during FY22, from 2.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.3	1.4
Debtors’ Days	Days	20	5
Interest coverage	x	0.1	0.0
Debt to equity ratio	x	-14.9	-4.3
Return on assets	%	2.9	1.8
Return on equity	%	278.8	63.0
Return on capital employed	%	3.5	-0.4

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 84.5 to Rs 116.5, registering a gain of Rs 32.0 or around 37.9%.

Overall, the S&P BSE SENSEX is up 5.6% 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