BHARAT BIJLEE 2018-19 Annual Report Analysis

Sun, 31 Mar

BHARAT BIJLEE 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.

BHARAT BIJLEE Income Statement Analysis

• Operating income during the year rose 23.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 27.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.4% in FY19 as against 10.9% in FY18.
• Depreciation charges decreased by 10.1% and finance costs decreased by 13.0% YoY, respectively.
• Other income grew by 37.3% YoY.
• Net profit for the year declined by 31.9% YoY.
• Net profit margins during the year declined from 8.0% in FY18 to 4.5% in FY19.

BHARAT BIJLEE Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	7,582	9,323	23.0%
Other income	Rs m	222	305	37.3%
Total Revenues	Rs m	7,804	9,628	23.4%
Gross profit	Rs m	827	598	-27.7%
Depreciation	Rs m	93	84	-10.1%
Interest	Rs m	229	199	-13.0%
Profit before tax	Rs m	727	619	-14.8%
Tax	Rs m	117	204	74.2%
Profit after tax	Rs m	610	415	-31.9%
Gross profit margin	%	10.9	6.4
Effective tax rate	%	16.1	32.9
Net profit margin	%	8.0	4.5

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BHARAT BIJLEE Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 4 billion as compared to Rs 4 billion in FY18, thereby witnessing an decrease of -6.1%.
• Current assets rose 7% and stood at Rs 7 billion, while fixed assets fell 0% and stood at Rs 5 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 11 billion as against Rs 11 billion during FY18, thereby witnessing a growth of 4%.

BHARAT BIJLEE Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	6,914	7,520	8.8
Current Liabilities	Rs m	4,211	3,953	-6.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	10,950	11,374	3.9
Current assets	Rs m	6,326	6,753	6.8
Fixed Assets	Rs m	4,623	4,621	0.0
Total Assets	Rs m	10,950	11,374	3.9

BHARAT BIJLEE Cash Flow Statement Analysis

• BHARAT BIJLEE's cash flow from operating activities (CFO) during FY19 stood at Rs 535 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -203 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -344 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -12 million from the Rs -96 million net cash flows seen during FY18.

BHARAT BIJLEE 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	-532	535	-
Cash Flow from Investing Activities	Rs m	256	-203	-
Cash Flow from Financing Activities	Rs m	180	-344	-
Net Cash Flow	Rs m	-96	-12	-

Current Valuations for BHARAT BIJLEE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 73.5, an decline from the EPS of Rs 107.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,093.9, stands at 14.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 15.5 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	1,341.9	1,650.1
TTM Earnings per share	Rs	107.9	73.5
Diluted earnings per share	Rs	107.9	73.5
Price to Cash Flow	x	12.1	15.5
TTM P/E ratio	x	14.0	14.9
Price / Book Value ratio	x	1.1	1.0
Market Cap	Rs m	7,567	7,751
Dividends per share (Unadj.)	Rs	2.5	12.5

Ratio Analysis for BHARAT BIJLEE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY19, from 1.5x 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 4.1x during FY19, from 4.2x 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 declined and down at 5.5% during FY19, from 8.8% 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 declined and down at 10.9% during FY19, from 13.8% 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 declined and down at 5.4% during FY19, from 7.7% 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	1.5	1.7
Debtors’ Days	Days	1,425	1,002
Interest coverage	x	4.2	4.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.7	5.4
Return on equity	%	8.8	5.5
Return on capital employed	%	13.8	10.9

To see how BHARAT BIJLEE has performed over the last 5 years, please visit here.

BHARAT BIJLEE Share Price Performance

Over the last one year, BHARAT BIJLEE share price has moved down from Rs 1,507.4 to Rs 1,093.9, registering a loss of Rs 413.5 or around 27.4%.

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 BHARAT BIJLEE and quarterly results for BHARAT BIJLEE)

Read: Latest Annual Report Analysis of BHARAT BIJLEE