BF UTILITIES 2022-23 Annual Report Analysis

Tue, 6 Feb

BF UTILITIES has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

BF UTILITIES Income Statement Analysis

• Operating income during the year rose 47.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 56.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 65.5% in FY23 as against 62.1% in FY22.
• Depreciation charges increased by 5.2% and finance costs increased by 0.1% YoY, respectively.
• Other income declined by 22.4% YoY.
• Net profit for the year grew by 175.6% YoY.
• Net profit margins during the year grew from 18.2% in FY22 to 33.8% in FY23.

BF UTILITIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,131	7,591	47.9%
Other income	Rs m	225	174	-22.4%
Total Revenues	Rs m	5,356	7,765	45.0%
Gross profit	Rs m	3,187	4,975	56.1%
Depreciation	Rs m	551	580	5.2%
Interest	Rs m	1,829	1,830	0.1%
Profit before tax	Rs m	1,031	2,739	165.7%
Tax	Rs m	99	172	73.4%
Profit after tax	Rs m	931	2,567	175.6%
Gross profit margin	%	62.1	65.5
Effective tax rate	%	9.7	6.3
Net profit margin	%	18.2	33.8

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BF UTILITIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 17.2%.
• Long-term debt down at Rs 13 billion as compared to Rs 15 billion during FY22, a fall of 11.4%.
• Current assets rose 4% and stood at Rs 5 billion, while fixed assets rose 4% and stood at Rs 17 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 22 billion as against Rs 21 billion during FY22, thereby witnessing a growth of 4%.

BF UTILITIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-1,712	-917	NA
Current Liabilities	Rs m	3,281	3,844	17.2
Long-term Debt	Rs m	15,167	13,439	-11.4
Total Liabilities	Rs m	21,474	22,318	3.9
Current assets	Rs m	4,821	5,028	4.3
Fixed Assets	Rs m	16,652	17,290	3.8
Total Assets	Rs m	21,474	22,318	3.9

BF UTILITIES Cash Flow Statement Analysis

• BF UTILITIES's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion, an improvement of 33.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -403 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 414 million from the Rs -166 million net cash flows seen during FY22.

BF UTILITIES Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	3,258	4,362	33.9%
Cash Flow from Investing Activities	Rs m	-595	-403	-
Cash Flow from Financing Activities	Rs m	-2,828	-3,545	-
Net Cash Flow	Rs m	-166	414	-

Current Valuations for BF UTILITIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 68.1, an improvement from the EPS of Rs 24.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 297.0, stands at 4.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -12.2 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 4.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	136.2	201.5
TTM Earnings per share	Rs	24.7	68.1
Diluted earnings per share	Rs	24.7	68.1
Price to Cash Flow	x	7.8	4.5
TTM P/E ratio	x	12.5	4.4
Price / Book Value ratio	x	-8.4	-15.5
Market Cap	Rs m	14,433	14,178
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BF UTILITIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.5x during FY22. 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 2.5x during FY23, from 1.6x during FY22. 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 -279.9% during FY23, from -54.4% during FY23. 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 36.5% during FY23, from 21.3% during FY22. 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 19.7% during FY23, from 12.9% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.5	1.3
Debtors’ Days	Days	1	1
Interest coverage	x	1.6	2.5
Debt to equity ratio	x	-8.9	-14.7
Return on assets	%	12.9	19.7
Return on equity	%	-54.4	-279.9
Return on capital employed	%	21.3	36.5

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

BF UTILITIES Share Price Performance

Over the last one year, BF UTILITIES share price has moved down from Rs 308.4 to Rs 297.0, registering a loss of Rs 11.4 or around 3.7%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 3,605.8 (up 0.5%). Over the last one year it has moved down from 4,043.6 to 3,605.8, a loss of 438 points (down 10.8%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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