BHAKTI GEMS AND JEWELLERY 2022-23 Annual Report Analysis

Wed, 25 Oct

BHAKTI GEMS AND JEWELLERY 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.

BHAKTI GEMS AND JEWELLERY Income Statement Analysis

• Operating income during the year rose 17.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 326.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 1.9% in FY23 as against 0.5% in FY22.
• Depreciation charges increased by 219.0% and finance costs increased by 69.6% YoY, respectively.
• Other income declined by 100.0% YoY.
• Net profit for the year declined by 9.3% YoY.
• Net profit margins during the year declined from 1.0% in FY22 to 0.8% in FY23.

BHAKTI GEMS AND JEWELLERY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	878	1,029	17.3%
Other income	Rs m	12	0	-100.0%
Total Revenues	Rs m	890	1,029	15.7%
Gross profit	Rs m	5	20	326.6%
Depreciation	Rs m	0	1	219.0%
Interest	Rs m	5	9	69.6%
Profit before tax	Rs m	12	11	-7.5%
Tax	Rs m	3	3	-2.2%
Profit after tax	Rs m	9	8	-9.3%
Gross profit margin	%	0.5	1.9
Effective tax rate	%	23.9	25.3
Net profit margin	%	1.0	0.8

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BHAKTI GEMS AND JEWELLERY Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 95 million as compared to Rs 140 million in FY22, thereby witnessing an decrease of -32.1%.
• Current assets fell 15% and stood at Rs 252 million, while fixed assets rose 239% and stood at Rs 11 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 263 million as against Rs 300 million during FY22, thereby witnessing a fall of 12%.

BHAKTI GEMS AND JEWELLERY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	159	167	5.0
Current Liabilities	Rs m	140	95	-32.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	300	263	-12.3
Current assets	Rs m	297	252	-15.0
Fixed Assets	Rs m	3	11	238.6
Total Assets	Rs m	300	263	-12.3

BHAKTI GEMS AND JEWELLERY Cash Flow Statement Analysis

• BHAKTI GEMS AND JEWELLERY's cash flow from operating activities (CFO) during FY23 stood at Rs 16 million, an improvement of 163.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -16 million, an improvement of 168.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 0 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs 0 million net cash flows seen during FY22.

BHAKTI GEMS AND JEWELLERY 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	6	16	163.1%
Cash Flow from Investing Activities	Rs m	-6	-16	-
Cash Flow from Financing Activities	Rs m	0	0	-
Net Cash Flow	Rs m	0	0	-

Current Valuations for BHAKTI GEMS AND JEWELLERY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.8, an decline from the EPS of Rs 0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 12.6, stands at 24.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 20.8 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	87.5	102.6
TTM Earnings per share	Rs	0.9	0.8
Diluted earnings per share	Rs	0.6	0.5
Price to Cash Flow	x	30.2	20.8
TTM P/E ratio	x	31.0	24.0
Price / Book Value ratio	x	1.7	1.1
Market Cap	Rs m	277	179
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 improved and stood at 2.6x during FY23, from 2.1x 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 deteriorated and stood at 2.2x during FY23, from 3.3x 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 4.8% during FY23, from 5.5% 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 11.5% during FY23, from 10.4% 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 6.3% during FY23, from 4.6% 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	2.1	2.6
Debtors’ Days	Days	56,533,737	55,711,356
Interest coverage	x	3.3	2.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.6	6.3
Return on equity	%	5.5	4.8
Return on capital employed	%	10.4	11.5

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 down from Rs 17.2 to Rs 12.6, registering a loss of Rs 4.6 or around 26.7%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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