BF INVESTMENT 2020-21 Annual Report Analysis

Wed, 31 Mar

BF INVESTMENT 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.

BF INVESTMENT Income Statement Analysis

• Operating income during the year fell 25.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 16.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 64.5% in FY21 as against 57.0% in FY20.
• Depreciation charges decreased by 6.9% and finance costs decreased by 91.5% YoY, respectively.
• Other income grew by 2276.2% YoY.
• Net profit for the year grew by 8.2% YoY.
• Net profit margins during the year declined from 332.9% in FY20 to 485.3% in FY21.

BF INVESTMENT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	221	164	-25.8%
Other income	Rs m	0	5	2,276.2%
Total Revenues	Rs m	221	169	-23.6%
Gross profit	Rs m	126	106	-16.0%
Depreciation	Rs m	8	7	-6.9%
Interest	Rs m	1	0	-91.5%
Profit before tax	Rs m	118	104	-12.1%
Tax	Rs m	854	900	5.4%
Profit after tax	Rs m	-736	-796	8.2%
Gross profit margin	%	57.0	64.5
Effective tax rate	%	723.6	867.3
Net profit margin	%	-332.9	-485.3

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BF INVESTMENT Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 9 million as compared to Rs 24 million in FY20, thereby witnessing an decrease of -62.4%.
• Current assets rose 17% and stood at Rs 1 billion, while fixed assets rose 91% and stood at Rs 35 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 36 billion as against Rs 19 billion during FY20, thereby witnessing a growth of 87%.

BF INVESTMENT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	17,110	32,976	92.7
Current Liabilities	Rs m	24	9	-62.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	19,236	35,914	86.7
Current assets	Rs m	1,058	1,239	17.1
Fixed Assets	Rs m	18,178	34,675	90.8
Total Assets	Rs m	19,236	35,914	86.7

BF INVESTMENT Cash Flow Statement Analysis

• BF INVESTMENT's cash flow from operating activities (CFO) during FY21 stood at Rs -62 million, an improvement of 101.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 125 million, an improvement of 18.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 0 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 63 million from the Rs 75 million net cash flows seen during FY20.

BF INVESTMENT 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	-31	-62	-
Cash Flow from Investing Activities	Rs m	106	125	18.5%
Cash Flow from Financing Activities	Rs m	0	0	0.0%
Net Cash Flow	Rs m	75	63	-15.5%

Current Valuations for BF INVESTMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -21.1, an decline from the EPS of Rs -19.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 276.7, stands at -13.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 63.5 times.
• The company's price to cash flow (P/CF) ratio stood at -14.1 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	5.9	4.4
TTM Earnings per share	Rs	-19.5	-21.1
Diluted earnings per share	Rs	-19.5	-21.1
Price to Cash Flow	x	-11.8	-14.1
TTM P/E ratio	x	-11.7	-13.1
Price / Book Value ratio	x	0.6	0.3
Market Cap	Rs m	9,959	11,163
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BF INVESTMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 139.9x during FY21, from 44.9x 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 2,076.8x during FY21, from 201.1x 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 -2.4% during FY21, from -4.3% 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 declined and down at 0.3% during FY21, from 0.7% 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 improved and stood at -2.2% during FY21, from -3.8% 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	44.9	139.9
Debtors’ Days	Days	0	0
Interest coverage	x	201.1	2,076.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-3.8	-2.2
Return on equity	%	-4.3	-2.4
Return on capital employed	%	0.7	0.3

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

BF INVESTMENT Share Price Performance

Over the last one year, BF INVESTMENT share price has moved up from Rs 228.9 to Rs 276.7, registering a gain of Rs 47.8 or around 20.9%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of BF INVESTMENT