BHAKTI GEMS AND JEWELLERY 2021-22 Annual Report Analysis

Tue, 8 Nov

BHAKTI GEMS AND JEWELLERY has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

BHAKTI GEMS AND JEWELLERY Income Statement Analysis

• Operating income during the year rose 29.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.5% in FY22 as against 0.6% in FY21.
• Depreciation charges increased by 50.0% and finance costs increased by 456.0% YoY, respectively.
• Other income grew by 2659.1% YoY.
• Net profit for the year grew by 233.8% YoY.
• Net profit margins during the year grew from 0.4% in FY21 to 1.0% in FY22.

BHAKTI GEMS AND JEWELLERY Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	679	878	29.2%
Other income	Rs m	0	12	2,659.1%
Total Revenues	Rs m	679	890	30.9%
Gross profit	Rs m	4	5	15.9%
Depreciation	Rs m	0	0	50.0%
Interest	Rs m	1	5	456.0%
Profit before tax	Rs m	3	12	237.4%
Tax	Rs m	1	3	249.4%
Profit after tax	Rs m	3	9	233.8%
Gross profit margin	%	0.6	0.5
Effective tax rate	%	23.1	23.9
Net profit margin	%	0.4	1.0

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BHAKTI GEMS AND JEWELLERY Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 140 million as compared to Rs 76 million in FY21, thereby witnessing an increase of 85.7%.
• Current assets rose 32% and stood at Rs 297 million, while fixed assets rose 30% and stood at Rs 3 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 300 million as against Rs 226 million during FY21, thereby witnessing a growth of 32%.

BHAKTI GEMS AND JEWELLERY Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	151	159	5.7
Current Liabilities	Rs m	76	140	85.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	226	300	32.5
Current assets	Rs m	224	297	32.5
Fixed Assets	Rs m	2	3	29.7
Total Assets	Rs m	226	300	32.5

BHAKTI GEMS AND JEWELLERY Cash Flow Statement Analysis

• BHAKTI GEMS AND JEWELLERY's cash flow from operating activities (CFO) during FY22 stood at Rs 6 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -6 million, an improvement of 335.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 0 million, an improvement of 13% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 0 million from the Rs -2 million net cash flows seen during FY21.

BHAKTI GEMS AND JEWELLERY Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-1	6	-
Cash Flow from Investing Activities	Rs m	-1	-6	-
Cash Flow from Financing Activities	Rs m	0	0	-
Net Cash Flow	Rs m	-2	0	-

Current Valuations for BHAKTI GEMS AND JEWELLERY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.9, an improvement from the EPS of Rs 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 16.4, stands at 17.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 30.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	67.7	87.5
TTM Earnings per share	Rs	0.3	0.9
Diluted earnings per share	Rs	0.3	0.9
Price to Cash Flow	x	144.9	30.8
TTM P/E ratio	x	44.2	17.9
Price / Book Value ratio	x	4.4	1.7
Market Cap	Rs m	661	277
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BHAKTI GEMS AND JEWELLERY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY22, from 3.0x during FY21. 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 3.3x during FY22, from 4.7x during FY21. 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 5.5% during FY22, from 1.7% during FY22. 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 10.4% during FY22, from 2.9% during FY21. 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 4.6% during FY22, from 1.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	3.0	2.1
Debtors’ Days	Days	23,613,184	56,533,737
Interest coverage	x	4.7	3.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.6	4.6
Return on equity	%	1.7	5.5
Return on capital employed	%	2.9	10.4

To see how BHAKTI GEMS AND JEWELLERY has performed over the last 5 years, please visit here.

BHAKTI GEMS AND JEWELLERY Share Price Performance

Over the last one year, BHAKTI GEMS AND JEWELLERY share price has moved up from Rs 13.7 to Rs 16.4, registering a gain of Rs 2.7 or around 19.9%.

Overall, the S&P BSE SENSEX is up 1.9% over the year.

(To know more, check out historical annual results for BHAKTI GEMS AND JEWELLERY and quarterly results for BHAKTI GEMS AND JEWELLERY)

Read: Latest Annual Report Analysis of BHAKTI GEMS AND JEWELLERY