BEDMUTHA INDUSTRIES 2022-23 Annual Report Analysis

Thu, 15 Feb

BEDMUTHA INDUSTRIES 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.

BEDMUTHA INDUSTRIES Income Statement Analysis

• Operating income during the year rose 4.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.5% in FY23 as against 2.5% in FY22.
• Depreciation charges decreased by 3.4% and finance costs increased by 5.0% YoY, respectively.
• Other income grew by 6.0% YoY.
• Net profit for the year grew by 38.7% YoY.
• Net profit margins during the year grew from 1.4% in FY22 to 1.9% in FY23.

BEDMUTHA INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,602	6,868	4.0%
Other income	Rs m	584	620	6.0%
Total Revenues	Rs m	7,186	7,487	4.2%
Gross profit	Rs m	164	171	3.9%
Depreciation	Rs m	330	319	-3.4%
Interest	Rs m	325	341	5.0%
Profit before tax	Rs m	94	130	38.7%
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	94	130	38.7%
Gross profit margin	%	2.5	2.5
Effective tax rate	%	0.0	0.0
Net profit margin	%	1.4	1.9

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BEDMUTHA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 6.1%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY22, a fall of 9.4%.
• Current assets rose 13% and stood at Rs 3 billion, while fixed assets fell 12% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 2%.

BEDMUTHA INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	865	995	15.0
Current Liabilities	Rs m	2,087	2,214	6.1
Long-term Debt	Rs m	1,722	1,560	-9.4
Total Liabilities	Rs m	4,904	4,995	1.9
Current assets	Rs m	2,696	3,050	13.1
Fixed Assets	Rs m	2,208	1,945	-11.9
Total Assets	Rs m	4,904	4,995	1.9

BEDMUTHA INDUSTRIES Cash Flow Statement Analysis

• BEDMUTHA INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 723 million, an improvement of 2.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -85 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -570 million, an improvement of 8% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 68 million from the Rs -26 million net cash flows seen during FY22.

BEDMUTHA INDUSTRIES 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	708	723	2.1%
Cash Flow from Investing Activities	Rs m	-113	-85	-
Cash Flow from Financing Activities	Rs m	-621	-570	-
Net Cash Flow	Rs m	-26	68	-

Current Valuations for BEDMUTHA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.0, an improvement from the EPS of Rs 2.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 60.5, stands at 15.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 5.3 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	204.6	212.9
TTM Earnings per share	Rs	2.9	4.0
Diluted earnings per share	Rs	2.9	4.0
Price to Cash Flow	x	5.3	5.3
TTM P/E ratio	x	24.4	15.5
Price / Book Value ratio	x	2.1	2.4
Market Cap	Rs m	1,840	2,390
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BEDMUTHA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY23, from 1.3x 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 improved and stood at 1.4x during FY23, from 1.3x 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 13.1% during FY23, from 10.8% 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 18.4% during FY23, from 16.2% 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 9.4% during FY23, from 8.5% 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	1.3	1.4
Debtors’ Days	Days	333	372
Interest coverage	x	1.3	1.4
Debt to equity ratio	x	2.0	1.6
Return on assets	%	8.5	9.4
Return on equity	%	10.8	13.1
Return on capital employed	%	16.2	18.4

To see how BEDMUTHA INDUSTRIES has performed over the last 5 years, please visit here.

BEDMUTHA INDUSTRIES Share Price Performance

Over the last one year, BEDMUTHA INDUSTRIES share price has moved down from Rs 70.1 to Rs 60.5, registering a loss of Rs 9.6 or around 13.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for BEDMUTHA INDUSTRIES and quarterly results for BEDMUTHA INDUSTRIES)