BGR ENERGY 2017-18 Annual Report Analysis

Sat, 31 Mar

BGR ENERGY has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

BGR ENERGY Income Statement Analysis

• Operating income during the year fell 3.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 17.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.7% in FY18 as against 13.6% in FY17.
• Depreciation charges increased by 4.0% and finance costs increased by 7.5% YoY, respectively.
• Other income grew by 9325.0% YoY.
• Net profit for the year declined by 93.6% YoY.
• Net profit margins during the year declined from 2.5% in FY17 to 0.2% in FY18.

BGR ENERGY Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	34,311	32,980	-3.9%
Other income	Rs m	2	226	9,325.0%
Total Revenues	Rs m	34,313	33,206	-3.2%
Gross profit	Rs m	4,680	3,874	-17.2%
Depreciation	Rs m	244	254	4.0%
Interest	Rs m	3,231	3,472	7.5%
Profit before tax	Rs m	1,207	374	-69.0%
Tax	Rs m	355	319	-10.0%
Profit after tax	Rs m	852	55	-93.6%
Gross profit margin	%	13.6	11.7
Effective tax rate	%	29.4	85.4
Net profit margin	%	2.5	0.2

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BGR ENERGY Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 48 billion as compared to Rs 42 billion in FY17, thereby witnessing an increase of 13.9%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY17, a fall of 37.7%.
• Current assets rose 2% and stood at Rs 50 billion, while fixed assets rose 17% and stood at Rs 18 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 68 billion as against Rs 64 billion during FY17, thereby witnessing a growth of 5%.

BGR ENERGY Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	13,140	13,231	0.7
Current Liabilities	Rs m	41,902	47,743	13.9
Long-term Debt	Rs m	2,736	1,705	-37.7
Total Liabilities	Rs m	64,261	67,772	5.5
Current assets	Rs m	48,865	49,812	1.9
Fixed Assets	Rs m	15,395	17,961	16.7
Total Assets	Rs m	64,261	67,772	5.5

BGR ENERGY Cash Flow Statement Analysis

• BGR ENERGY's cash flow from operating activities (CFO) during FY18 stood at Rs 238 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -309 million, an improvement of 71.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -907 million, an improvement of 83% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -978 million from the Rs -73 million net cash flows seen during FY17.

BGR ENERGY Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	5,449	238	-95.6%
Cash Flow from Investing Activities	Rs m	-180	-309	-
Cash Flow from Financing Activities	Rs m	-5,341	-907	-
Net Cash Flow	Rs m	-73	-978	-

Current Valuations for BGR ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.8, an decline from the EPS of Rs 11.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 102.2, stands at 18.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 33.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	475.5	457.0
TTM Earnings per share	Rs	11.8	0.8
Diluted earnings per share	Rs	11.8	0.8
Price to Cash Flow	x	9.1	33.2
TTM P/E ratio	x	22.6	18.6
Price / Book Value ratio	x	0.7	0.8
Market Cap	Rs m	9,170	10,251
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BGR ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY18, from 1.2x during FY17. 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 1.1x during FY18, from 1.4x during FY17. 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 0.4% during FY18, from 6.5% during FY18. 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 25.8% during FY18, from 28.0% during FY17. 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 5.2% during FY18, from 6.4% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.2	1.0
Debtors’ Days	Days	2,302	3,316
Interest coverage	x	1.4	1.1
Debt to equity ratio	x	0.2	0.1
Return on assets	%	6.4	5.2
Return on equity	%	6.5	0.4
Return on capital employed	%	28.0	25.8

To see how BGR ENERGY has performed over the last 5 years, please visit here.

BGR ENERGY Share Price Performance

Over the last one year, BGR ENERGY share price has moved down from Rs 138.2 to Rs 102.2, registering a loss of Rs 36.0 or around 26.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for BGR ENERGY and quarterly results for BGR ENERGY)

Read: Latest Annual Report Analysis of BGR ENERGY