BEML LTD. 2017-18 Annual Report Analysis

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BEML LTD. 2017-18 Annual Report Analysis
Tue, 18 Dec

BEML LTD. has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

BEML LTD. Income Statement Analysis

  • Operating income during the year rose 16.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 72.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.7% in FY18 as against 5.2% in FY17.
  • Depreciation charges increased by 4.1% and finance costs increased by 0.6% YoY, respectively.
  • Other income declined by 60.0% YoY.
  • Net profit for the year grew by 53.0% YoY.
  • Net profit margins during the year grew from 2.9% in FY17 to 3.9% in FY18.

BEML LTD. Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 28,295 32,987 16.6%
Other income Rs m 626 250 -60.0%
Total Revenues Rs m 28,921 33,237 14.9%
Gross profit Rs m 1,465 2,527 72.5%
Depreciation Rs m 628 654 4.1%
Interest Rs m 480 483 0.6%
Profit before tax Rs m 983 1,641 66.9%
Tax Rs m 135 344 154.7%
Profit after tax Rs m 848 1,297 53.0%
Gross profit margin % 5.2 7.7
Effective tax rate % 13.7 21.0
Net profit margin % 2.9 3.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BEML LTD. Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 17 billion as compared to Rs 17 billion in FY17, thereby witnessing an decrease of -0.9%.
  • Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY17, a fall of 1.9%.
  • Current assets fell 2% and stood at Rs 38 billion, while fixed assets fell 0% and stood at Rs 7 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 47 billion as against Rs 47 billion during FY17, thereby witnessing a fall of 0%.

BEML LTD. Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 21,824 22,011 0.9
 
Current Liabilities Rs m 16,952 16,796 -0.9
Long-term Debt Rs m 3,105 3,045 -1.9
Total Liabilities Rs m 47,056 46,855 -0.4
 
Current assets Rs m 38,188 37,551 -1.7
Fixed Assets Rs m 6,628 6,627 0.0
Total Assets Rs m 47,056 46,855 -0.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BEML LTD. Cash Flow Statement Analysis

  • BEML LTD.'s cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -619 million, an improvement of 4.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion, an improvement of 37% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -328 million from the Rs -111 million net cash flows seen during FY17.

BEML LTD. Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 2,086 1,297 -37.8%
Cash Flow from Investing Activities Rs m -594 -619 -
Cash Flow from Financing Activities Rs m -1,603 -1,007 -
Net Cash Flow Rs m -111 -328 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BEML LTD.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.1, an improvement from the EPS of Rs 20.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 858.6, stands at 59.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 1.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 18.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 679.5 792.2
TTM Earnings per share Rs 20.4 31.1
Diluted earnings per share Rs 20.2 30.9
Price to Cash Flow x 24.2 18.4
TTM P/E ratio x 58.7 59.0
Price / Book Value ratio x 2.0 2.8
Market Cap Rs m 35,752 35,975
Dividends per share (Unadj.) Rs 8.0 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for BEML LTD.

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.2x during FY18, from 2.3x during FY17. 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 4.4x during FY18, from 3.0x during FY17. 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 5.9% during FY18, from 3.9% during FY18. 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 8.5% during FY18, from 5.9% during FY17. 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 3.8% during FY18, from 2.8% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 2.3 2.2
Debtors’ Days Days 185 182
Interest coverage x 3.0 4.4
Debt to equity ratio x 0.1 0.1
Return on assets % 2.8 3.8
Return on equity % 3.9 5.9
Return on capital employed % 5.9 8.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

BEML LTD. Share Price Performance

Over the last one year, BEML LTD. share price has moved up from Rs 1,505.2 to Rs 858.6, registering a loss of Rs 646.6 or around 43.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,593.6 (up 0.6%). Over the last one year it has moved up from 18,447.1 to 18,593.6, a gain of 147 points (up 0.8%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

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

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For the quarter ended June 2019, BEML LTD. has posted a net profit of Rs 968 m (up 39.6% YoY). Sales on the other hand came in at Rs 6 bn (up 27.8% YoY). Read on for a complete analysis of BEML LTD.'s quarterly results.

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