BEML 2020-21 Annual Report Analysis

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BEML 2020-21 Annual Report Analysis
Tue, 26 Oct

BEML 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.

BEML Income Statement Analysis

  • Operating income during the year rose 17.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 96.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.3% in FY21 as against 2.0% in FY20.
  • Depreciation charges decreased by 1.4% and finance costs increased by 1.7% YoY, respectively.
  • Other income grew by 13.0% YoY.
  • Net profit for the year grew by 7.9% YoY.
  • Net profit margins during the year declined from 2.1% in FY20 to 1.9% in FY21.

BEML Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 30,254 35,566 17.6%
Other income Rs m 793 896 13.0%
Total Revenues Rs m 31,047 36,463 17.4%
Gross profit Rs m 596 1,169 96.0%
Depreciation Rs m 724 714 -1.4%
Interest Rs m 472 480 1.7%
Profit before tax Rs m 194 871 349.9%
Tax Rs m -443 184 -141.5%
Profit after tax Rs m 637 687 7.9%
Gross profit margin % 2.0 3.3
Effective tax rate % -228.9 21.1
Net profit margin % 2.1 1.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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BEML Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 21 billion as compared to Rs 14 billion in FY20, thereby witnessing an increase of 47.6%.
  • Long-term debt down at Rs 1,000 million as compared to Rs 2 billion during FY20, a fall of 50.4%.
  • Current assets rose 17% and stood at Rs 49 billion, while fixed assets fell 2% and stood at Rs 7 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 56 billion as against Rs 49 billion during FY20, thereby witnessing a growth of 15%.

BEML Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 22,528 22,144 -1.7
 
Current Liabilities Rs m 14,365 21,206 47.6
Long-term Debt Rs m 2,015 1,000 -50.4
Total Liabilities Rs m 48,611 55,677 14.5
 
Current assets Rs m 41,604 48,835 17.4
Fixed Assets Rs m 7,007 6,842 -2.4
Total Assets Rs m 48,611 55,677 14.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BEML Cash Flow Statement Analysis

  • BEML's cash flow from operating activities (CFO) during FY21 stood at Rs -3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -490 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -5 billion from the Rs 575 million net cash flows seen during FY20.

BEML 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 1,058 -3,010 -
Cash Flow from Investing Activities Rs m -513 -490 -
Cash Flow from Financing Activities Rs m 29 -1,762 -
Net Cash Flow Rs m 575 -5,262 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BEML

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.5, an improvement from the EPS of Rs 15.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,609.3, stands at 60.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 47.8 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 726.6 854.1
TTM Earnings per share Rs 15.3 16.5
Diluted earnings per share Rs 15.3 16.5
Price to Cash Flow x 49.3 47.8
TTM P/E ratio x 60.5 60.5
Price / Book Value ratio x 1.4 1.9
Market Cap Rs m 67,018 67,018
Dividends per share (Unadj.) Rs 6.0 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BEML

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY21, from 2.9x 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 improved and stood at 2.8x during FY21, from 1.4x 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 improved and stood at 3.1% during FY21, from 2.8% 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 improved and stood at 5.8% during FY21, from 2.7% 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 2.1% during FY21, from 2.3% 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 2.9 2.3
Debtors’ Days Days 1,819 1,934
Interest coverage x 1.4 2.8
Debt to equity ratio x 0.1 0.0
Return on assets % 2.3 2.1
Return on equity % 2.8 3.1
Return on capital employed % 2.7 5.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

BEML Share Price Performance

Over the last one year, BEML share price has moved up from Rs 629.5 to Rs 1,609.3, registering a gain of Rs 979.8 or around 155.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 26,813.0 (up 0.6%). Over the last one year it has moved up from 14,119.2 to 26,813.0, a gain of 12,694 points (up 89.9%).

Overall, the S&P BSE SENSEX is up 50.9% over the year.

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

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Related Views on News

BEML Announces Quarterly Results (4QFY21); Net Profit Down 14.2% (Quarterly Result Update)

Jul 8, 2021 | Updated on Jul 8, 2021

For the quarter ended March 2021, BEML has posted a net profit of Rs 2 bn (down 14.2% YoY). Sales on the other hand came in at Rs 18 bn (up 66.3% YoY). Read on for a complete analysis of BEML's quarterly results.

BEML LTD. Announces Quarterly Results (1QFY21); Net Profit Down 37.1% (Quarterly Result Update)

Aug 18, 2020 | Updated on Aug 18, 2020

For the quarter ended June 2020, BEML LTD. has posted a net profit of Rs 1 bn (down 37.1% YoY). Sales on the other hand came in at Rs 4 bn (down 32.7% YoY). Read on for a complete analysis of BEML LTD.'s quarterly results.

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