BF INVESTMENT 2020-21 Annual Report Analysis

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BF INVESTMENT 2020-21 Annual Report Analysis
Thu, 28 Oct

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 332.6% in FY20 to 471.0% 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 % -332.6 -471.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Check Out: Why Millions of Dollars are Getting Pumped into this Sector?

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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 332.7, stands at -16.0 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 68.0 times.
  • The company's price to cash flow (P/CF) ratio stood at -15.9 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 -17.2 -15.9
TTM P/E ratio x -16.0 -16.0
Price / Book Value ratio x 0.6 0.3
Market Cap Rs m 12,532 12,532
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 268.3 to Rs 332.7, registering a gain of Rs 64.4 or around 24.0%.

Overall, the S&P BSE SENSEX is up 51.0% over the year.

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

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