Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

Are you sitting on the sidelines
while this small cap trend unfolds?

(Minor market corrections will not stop this)




**Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
**By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.


AD

BHARAT FORGE 2018-19 Annual Report Analysis
Sun, 31 Mar

BHARAT FORGE has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

BHARAT FORGE Income Statement Analysis

  • Operating income during the year rose 22.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 24.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.9% in FY19 as against 19.5% in FY18.
  • Depreciation charges increased by 11.4% and finance costs increased by 19.4% YoY, respectively.
  • Other income grew by 62.0% YoY.
  • Net profit for the year grew by 38.4% YoY.
  • Net profit margins during the year grew from 9.1% in FY18 to 10.3% in FY19.

BHARAT FORGE Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 83,007 101,457 22.2%
Other income Rs m 1,420 2,300 62.0%
Total Revenues Rs m 84,427 103,757 22.9%
Gross profit Rs m 16,214 20,207 24.6%
Depreciation Rs m 4,607 5,132 11.4%
Interest Rs m 1,065 1,272 19.4%
Profit before tax Rs m 11,961 16,104 34.6%
Tax Rs m 4,418 5,664 28.2%
Profit after tax Rs m 7,543 10,440 38.4%
Gross profit margin % 19.5 19.9
Effective tax rate % 36.9 35.2
Net profit margin % 9.1 10.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Coming Soon: Equitymaster Small Cap Meeting. Register now

BHARAT FORGE Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 41 billion as compared to Rs 38 billion in FY18, thereby witnessing an increase of 9.5%.
  • Long-term debt stood at Rs 17 billion as compared to Rs 11 billion during FY18, a growth of 49.0%.
  • Current assets rose 21% and stood at Rs 55 billion, while fixed assets rose 12% and stood at Rs 60 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 116 billion as against Rs 100 billion during FY18, thereby witnessing a growth of 16%.

BHARAT FORGE Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 46,517 53,761 15.6
 
Current Liabilities Rs m 37,539 41,088 9.5
Long-term Debt Rs m 11,262 16,785 49.0
Total Liabilities Rs m 99,768 115,783 16.1
 
Current assets Rs m 45,809 55,389 20.9
Fixed Assets Rs m 53,959 60,394 11.9
Total Assets Rs m 99,768 115,783 16.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BHARAT FORGE Cash Flow Statement Analysis

  • BHARAT FORGE's cash flow from operating activities (CFO) during FY19 stood at Rs 9 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -12 billion, an improvement of 44.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 4 billion, an improvement of 217% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 832 million from the Rs -693 million net cash flows seen during FY18.

BHARAT FORGE Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 9,674 9,115 -5.8%
Cash Flow from Investing Activities Rs m -8,142 -11,751 -
Cash Flow from Financing Activities Rs m -3,144 3,676 -
Net Cash Flow Rs m -693 832 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BHARAT FORGE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.4, an improvement from the EPS of Rs 16.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 511.6, stands at 36.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 2.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 18.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 178.2 217.9
TTM Earnings per share Rs 16.2 22.4
Diluted earnings per share Rs 16.2 22.4
Price to Cash Flow x 26.8 18.5
TTM P/E ratio x 46.1 36.1
Price / Book Value ratio x 9.4 5.4
Market Cap Rs m 437,124 287,710
Dividends per share (Unadj.) Rs 4.5 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BHARAT FORGE

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x during FY19, from 1.2x during FY18. 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 13.7x during FY19, from 12.2x during FY18. 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 19.4% during FY19, from 16.2% during FY19. 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 24.6% during FY19, from 22.5% during FY18. 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 10.1% during FY19, from 8.6% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.2 1.3
Debtors’ Days Days 85 77
Interest coverage x 12.2 13.7
Debt to equity ratio x 0.2 0.3
Return on assets % 8.6 10.1
Return on equity % 16.2 19.4
Return on capital employed % 22.5 24.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

BHARAT FORGE Share Price Performance

Over the last one year, BHARAT FORGE share price has moved down from Rs 700.2 to Rs 511.6, registering a loss of Rs 188.6 or around 26.9%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of BHARAT FORGE?

BHARAT FORGE currently trades at Rs 1,112.4 per share. You can check out the latest share price performance of BHARAT FORGE here...

What was the revenue of BHARAT FORGE in FY19? How does it compare to earlier years?

The revenues of BHARAT FORGE stood at Rs 103,757 m in FY19, which was up 22.9% compared to Rs 84,427 m reported in FY18.

BHARAT FORGE's revenue has grown from Rs 76,034 m in FY15 to Rs 103,757 m in FY19.

Over the past 5 years, the revenue of BHARAT FORGE has grown at a CAGR of 8.1%.

What was the net profit of BHARAT FORGE in FY19? How does it compare to earlier years?

The net profit of BHARAT FORGE stood at Rs 10,440 m in FY19, which was up 38.4% compared to Rs 7,543 m reported in FY18.

This compares to a net profit of Rs 6,976 m in FY17 and a net profit of Rs 6,493 m in FY16.

Over the past 5 years, BHARAT FORGE net profit has grown at a CAGR of 8.3%.

What does the cash flow statement of BHARAT FORGE reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of BHARAT FORGE reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 9,115 m as compared to Rs 9,674 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -11,751 m as compared to Rs -8,142 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs 3,676 m as compared to Rs -3,144 m in FY18.

Here's the cash flow statement of BHARAT FORGE for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations10,34513,55810,5179,6749,115
From Investments-4,669-9,268-6,844-8,142-11,751
From Financial Activity-3,599-4,483-4,007-3,1443,676
Net Cashflow2,077191-334-693832

What does the Key Ratio analysis of BHARAT FORGE reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of BHARAT FORGE reveals:

  • Operating profit margins witnessed a fall and down at 19.9% in FY19 as against 19.5% in FY18.
  • Net profit margins grew from 9.1% in FY18 to 10.3% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.3 as compared to 0.2 in FY18.

Here's the ratio/financial analysis of BHARAT FORGE for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)19.821.222.319.519.9
Net Profit Margin (%)10.29.811.39.110.3
Debt to Equity Ratio (x)0.60.50.30.20.3

Read: Latest Annual Report Analysis of BHARAT FORGE

Equitymaster requests your view! Post a comment on "BHARAT FORGE 2018-19 Annual Report Analysis". Click here!