BHARAT FORGE 2018-19 Annual Report Analysis

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BHARAT FORGE 2018-19 Annual Report Analysis
Mon, 16 Sep

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 21.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 19.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.3% in FY19 as against 20.6% in FY18.
  • Depreciation charges increased by 11.5% and finance costs increased by 19.4% YoY, respectively.
  • Other income grew by 42.8% YoY.
  • Net profit for the year grew by 37.0% YoY.
  • Net profit margins during the year grew from 8.9% in FY18 to 10.0% in FY19.

BHARAT FORGE Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 83,577 101,457 21.4%
Other income Rs m 1,420 2,028 42.8%
Total Revenues Rs m 84,997 103,485 21.8%
Gross profit Rs m 17,230 20,556 19.3%
Depreciation Rs m 4,669 5,208 11.5%
Interest Rs m 1,065 1,272 19.4%
Profit before tax Rs m 12,916 16,104 24.7%
Tax Rs m 4,418 5,657 28.1%
Profit after tax Rs m 7,540 10,326 37.0%
Gross profit margin % 20.6 20.3
Effective tax rate % 34.2 35.1
Net profit margin % 8.9 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 18% and stood at Rs 46 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 100,164 116,422 16.2
 
Current assets Rs m 45,809 55,389 20.9
Fixed Assets Rs m 38,595 45,609 18.2
Total Assets Rs m 100,164 116,422 16.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 3,677 -
Net Cash Flow Rs m -693 832 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BHARAT FORGE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.2, 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 412.0, stands at 19.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.4 times, while the price to sales ratio stands at 2.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.3 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 179.5 217.9
TTM Earnings per share Rs 16.2 22.2
Diluted earnings per share Rs 16.2 22.2
Price to Cash Flow x 15.7 12.3
TTM P/E ratio x 19.0 19.0
Price / Book Value ratio x 9.4 5.4
Market Cap Rs m 191,823 191,822
Dividends per share (Unadj.) Rs 4.5 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 13.1x 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 19.2% 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 24.5% 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 10.0% 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 13.1 13.7
Debt to equity ratio x 0.2 0.3
Return on assets % 8.6 10.0
Return on equity % 16.2 19.2
Return on capital employed % 22.5 24.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 670.4 to Rs 412.0, registering a loss of Rs 258.4 or around 38.5%.

Overall, the S&P BSE SENSEX is down 2.4% over the year.

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

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Related Views on News

BHARAT FORGE Announces Quarterly Results (3QFY20); Net Profit Down 58.7% (Quarterly Result Update)

Feb 17, 2020 | Updated on Feb 17, 2020

For the quarter ended December 2019, BHARAT FORGE has posted a net profit of Rs 1 bn (down 58.7% YoY). Sales on the other hand came in at Rs 11 bn (down 36.4% YoY). Read on for a complete analysis of BHARAT FORGE's quarterly results.

BHARAT FORGE Announces Quarterly Results (1QFY20); Net Profit Down 25.7% (Quarterly Result Update)

Aug 14, 2019 | Updated on Aug 14, 2019

For the quarter ended June 2019, BHARAT FORGE has posted a net profit of Rs 2 bn (down 25.7% YoY). Sales on the other hand came in at Rs 13 bn (down 9.0% YoY). Read on for a complete analysis of BHARAT FORGE's quarterly results.

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