BEML 2022-23 Annual Report Analysis

Thu, 7 Sep

BEML 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.

BEML Income Statement Analysis

• Operating income during the year fell 10.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.6% in FY23 as against 7.7% in FY22.
• Depreciation charges decreased by 3.6% and finance costs decreased by 22.6% YoY, respectively.
• Other income grew by 314.1% YoY.
• Net profit for the year grew by 22.8% YoY.
• Net profit margins during the year grew from 3.0% in FY22 to 4.0% in FY23.

BEML Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	43,375	38,989	-10.1%
Other income	Rs m	57	236	314.1%
Total Revenues	Rs m	43,432	39,225	-9.7%
Gross profit	Rs m	3,340	3,751	12.3%
Depreciation	Rs m	665	641	-3.6%
Interest	Rs m	735	569	-22.6%
Profit before tax	Rs m	1,997	2,777	39.0%
Tax	Rs m	711	1,198	68.4%
Profit after tax	Rs m	1,286	1,579	22.8%
Gross profit margin	%	7.7	9.6
Effective tax rate	%	35.6	43.1
Net profit margin	%	3.0	4.0

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BEML Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 18 billion as compared to Rs 20 billion in FY22, thereby witnessing an decrease of -12.3%.
• Current assets fell 12% and stood at Rs 43 billion, while fixed assets fell 9% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 49 billion as against Rs 56 billion during FY22, thereby witnessing a fall of 12%.

BEML Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	23,567	24,215	2.7
Current Liabilities	Rs m	20,370	17,863	-12.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	55,551	49,015	-11.8
Current assets	Rs m	48,436	42,542	-12.2
Fixed Assets	Rs m	7,080	6,473	-8.6
Total Assets	Rs m	55,551	49,015	-11.8

BEML Cash Flow Statement Analysis

• BEML's cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion, an improvement of 1,006.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -201 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs 161 million net cash flows seen during FY22.

BEML 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	509	5,634	1,006.2%
Cash Flow from Investing Activities	Rs m	-249	-201	-
Cash Flow from Financing Activities	Rs m	-99	-3,348	-
Net Cash Flow	Rs m	161	2,085	1,192.4%

Current Valuations for BEML

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 37.9, an improvement from the EPS of Rs 30.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,456.8, stands at 61.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 28.5 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	1,041.7	936.3
TTM Earnings per share	Rs	30.9	37.9
Diluted earnings per share	Rs	30.9	37.9
Price to Cash Flow	x	38.8	28.5
TTM P/E ratio	x	58.9	61.9
Price / Book Value ratio	x	2.8	2.6
Market Cap	Rs m	66,714	63,287
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for BEML

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY23, from 2.4x 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 5.9x during FY23, from 3.7x 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 6.5% during FY23, from 5.5% 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 13.8% during FY23, from 11.6% 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 4.4% during FY23, from 3.6% 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	2.4	2.4
Debtors’ Days	Days	1,566	1,158
Interest coverage	x	3.7	5.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.6	4.4
Return on equity	%	5.5	6.5
Return on capital employed	%	11.6	13.8

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 1,834.9 to Rs 2,456.8, registering a gain of Rs 622.0 or around 33.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 46,356.5 (up 1.1%). Over the last one year it has moved up from 33,224.3 to 46,356.5, a gain of 13,132 points (up 39.5%).

Overall, the S&P BSE SENSEX is up 11.2% over the year.

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