BGR ENERGY 2018-19 Annual Report Analysis

Sun, 31 Mar

BGR ENERGY has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

BGR ENERGY Income Statement Analysis

• Operating income during the year fell 0.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.2% in FY19 as against 11.7% in FY18.
• Depreciation charges increased by 10.6% and finance costs decreased by 1.1% YoY, respectively.
• Other income grew by 39.4% YoY.
• Net profit for the year grew by 176.1% YoY.
• Net profit margins during the year grew from 0.2% in FY18 to 0.5% in FY19.

BGR ENERGY Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	32,980	32,728	-0.8%
Other income	Rs m	226	315	39.4%
Total Revenues	Rs m	33,206	33,044	-0.5%
Gross profit	Rs m	3,874	3,678	-5.1%
Depreciation	Rs m	254	281	10.6%
Interest	Rs m	3,472	3,435	-1.1%
Profit before tax	Rs m	374	278	-25.6%
Tax	Rs m	319	127	-60.2%
Profit after tax	Rs m	55	151	176.1%
Gross profit margin	%	11.7	11.2
Effective tax rate	%	85.4	45.7
Net profit margin	%	0.2	0.5

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BGR ENERGY Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 49 billion as compared to Rs 48 billion in FY18, thereby witnessing an increase of 3.5%.
• Long-term debt down at Rs 357 million as compared to Rs 2 billion during FY18, a fall of 79.1%.
• Current assets fell 2% and stood at Rs 49 billion, while fixed assets rose 1% and stood at Rs 18 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 67 billion as against Rs 68 billion during FY18, thereby witnessing a fall of 1%.

BGR ENERGY Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	13,231	12,275	-7.2
Current Liabilities	Rs m	47,743	49,407	3.5
Long-term Debt	Rs m	1,705	357	-79.1
Total Liabilities	Rs m	67,772	67,041	-1.1
Current assets	Rs m	49,812	48,957	-1.7
Fixed Assets	Rs m	17,961	18,084	0.7
Total Assets	Rs m	67,772	67,041	-1.1

BGR ENERGY Cash Flow Statement Analysis

• BGR ENERGY's cash flow from operating activities (CFO) during FY19 stood at Rs 3 billion, an improvement of 951.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -254 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -67 million from the Rs -978 million net cash flows seen during FY18.

BGR ENERGY Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	238	2,502	951.0%
Cash Flow from Investing Activities	Rs m	-309	-254	-
Cash Flow from Financing Activities	Rs m	-907	-2,316	-
Net Cash Flow	Rs m	-978	-67	-

Current Valuations for BGR ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.1, an improvement from the EPS of Rs 0.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 63.0, stands at 15.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 13.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	457.0	453.6
TTM Earnings per share	Rs	0.8	2.1
Diluted earnings per share	Rs	0.8	2.1
Price to Cash Flow	x	23.9	13.6
TTM P/E ratio	x	18.6	15.6
Price / Book Value ratio	x	0.8	0.5
Market Cap	Rs m	10,251	5,887
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 FY19, from 1.0x during FY18. 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 FY19, from 1.1x during FY18. 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 1.2% during FY19, from 0.4% during FY19. 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 29.4% during FY19, from 25.8% during FY18. 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 5.3% during FY19, from 5.2% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	1.0	1.0
Debtors’ Days	Days	3,316	3,225
Interest coverage	x	1.1	1.1
Debt to equity ratio	x	0.1	0.0
Return on assets	%	5.2	5.3
Return on equity	%	0.4	1.2
Return on capital employed	%	25.8	29.4

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 102.2 to Rs 63.0, registering a loss of Rs 39.2 or around 38.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

Overall, the S&P BSE SENSEX is up 16.3% 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