BHARAT FORGE 2019-20 Annual Report Analysis

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BHARAT FORGE 2019-20 Annual Report Analysis
Wed, 21 Oct

BHARAT FORGE has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

BHARAT FORGE Income Statement Analysis

  • Operating income during the year fell 20.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 45.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.8% in FY20 as against 20.3% in FY19.
  • Depreciation charges increased by 5.2% and finance costs increased by 34.7% YoY, respectively.
  • Other income declined by 7.4% YoY.
  • Net profit for the year declined by 66.2% YoY.
  • Net profit margins during the year declined from 10.0% in FY19 to 4.2% in FY20.

BHARAT FORGE Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 101,457 80,558 -20.6%
Other income Rs m 2,028 1,879 -7.4%
Total Revenues Rs m 103,485 82,437 -20.3%
Gross profit Rs m 20,556 11,147 -45.8%
Depreciation Rs m 5,208 5,477 5.2%
Interest Rs m 1,272 1,713 34.7%
Profit before tax Rs m 16,104 5,835 -63.8%
Tax Rs m 5,664 1,125 -80.1%
Profit after tax Rs m 10,326 3,493 -66.2%
Gross profit margin % 20.3 13.8
Effective tax rate % 35.2 19.3
Net profit margin % 10.0 4.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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BHARAT FORGE Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 40 billion as compared to Rs 41 billion in FY19, thereby witnessing an decrease of -3.4%.
  • Long-term debt stood at Rs 19 billion as compared to Rs 17 billion during FY19, a growth of 11.7%.
  • Current assets fell 5% and stood at Rs 53 billion, while fixed assets rose 15% and stood at Rs 53 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 116 billion as against Rs 116 billion during FY19, thereby witnessing a fall of 1%.

BHARAT FORGE Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 53,761 52,197 -2.9
 
Current Liabilities Rs m 41,088 39,674 -3.4
Long-term Debt Rs m 16,785 18,747 11.7
Total Liabilities Rs m 116,422 115,628 -0.7
 
Current assets Rs m 55,389 52,711 -4.8
Fixed Assets Rs m 45,609 52,666 15.5
Total Assets Rs m 116,422 115,628 -0.7
* 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 FY20 stood at Rs 15 billion, an improvement of 67.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -11 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 264 million from the Rs 832 million net cash flows seen during FY19.

BHARAT FORGE Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 9,115 15,220 67.0%
Cash Flow from Investing Activities Rs m -11,751 -11,322 -
Cash Flow from Financing Activities Rs m 3,677 -3,814 -
Net Cash Flow Rs m 832 264 -68.3%
* 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 7.5, an decline from the EPS of Rs 22.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 459.7, stands at 45.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 2.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 22.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 217.9 173.0
TTM Earnings per share Rs 22.2 7.5
Diluted earnings per share Rs 22.2 7.5
Price to Cash Flow x 13.7 22.8
TTM P/E ratio x 45.2 45.2
Price / Book Value ratio x 5.4 3.4
Market Cap Rs m 214,008 214,008
Dividends per share (Unadj.) Rs 5.0 3.5
* 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 deteriorated and stood at 1.3x during FY20, from 1.3x during FY19. 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 FY20, from 13.7x during FY19. 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 declined and down at 6.7% during FY20, from 19.2% during FY20. 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 8.9% during FY20, from 24.5% during FY19. 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 declined and down at 4.5% during FY20, from 10.0% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 1.3 1.3
Debtors’ Days Days 77 68
Interest coverage x 13.7 4.4
Debt to equity ratio x 0.3 0.4
Return on assets % 10.0 4.5
Return on equity % 19.2 6.7
Return on capital employed % 24.5 8.9
* 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 up from Rs 445.5 to Rs 459.7, registering a gain of Rs 14.2 or around 3.2%.

Overall, the S&P BSE SENSEX is up 5.0% 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 (1QFY22); Net Profit Up 229.0% (Quarterly Result Update)

Aug 16, 2021 | Updated on Aug 16, 2021

For the quarter ended June 2021, BHARAT FORGE has posted a net profit of Rs 2 bn (up 229.0% YoY). Sales on the other hand came in at Rs 21 bn (up 82.6% YoY). Read on for a complete analysis of BHARAT FORGE's quarterly results.

BHARAT FORGE 2020-21 Annual Report Analysis (Annual Result Update)

Aug 10, 2021 | Updated on Aug 10, 2021

Here's an analysis of the annual report of BHARAT FORGE for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of BHARAT FORGE. Also includes updates on the valuation of BHARAT FORGE.

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.

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