BHARAT BIJLEE 2020-21 Annual Report Analysis

Wed, 31 Mar

BHARAT BIJLEE has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

BHARAT BIJLEE Income Statement Analysis

• Operating income during the year fell 21.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 44.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.3% in FY21 as against 7.5% in FY20.
• Depreciation charges increased by 8.0% and finance costs decreased by 15.6% YoY, respectively.
• Other income declined by 13.4% YoY.
• Net profit for the year declined by 42.9% YoY.
• Net profit margins during the year declined from 4.9% in FY20 to 3.6% in FY21.

BHARAT BIJLEE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	9,287	7,310	-21.3%
Other income	Rs m	311	270	-13.4%
Total Revenues	Rs m	9,599	7,580	-21.0%
Gross profit	Rs m	694	385	-44.5%
Depreciation	Rs m	90	97	8.0%
Interest	Rs m	227	191	-15.6%
Profit before tax	Rs m	689	367	-46.8%
Tax	Rs m	233	106	-54.5%
Profit after tax	Rs m	456	261	-42.9%
Gross profit margin	%	7.5	5.3
Effective tax rate	%	33.8	28.9
Net profit margin	%	4.9	3.6

Emerging Opportunity: Bluechip Bull Run

BHARAT BIJLEE Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 5 billion as compared to Rs 5 billion in FY20, thereby witnessing an decrease of -1.5%.
• Current assets rose 4% and stood at Rs 8 billion, while fixed assets rose 43% and stood at Rs 7 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 15 billion as against Rs 12 billion during FY20, thereby witnessing a growth of 19%.

BHARAT BIJLEE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,555	9,723	28.7
Current Liabilities	Rs m	4,828	4,754	-1.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	12,401	14,760	19.0
Current assets	Rs m	7,665	7,968	3.9
Fixed Assets	Rs m	4,736	6,792	43.4
Total Assets	Rs m	12,401	14,760	19.0

BHARAT BIJLEE Cash Flow Statement Analysis

• BHARAT BIJLEE's cash flow from operating activities (CFO) during FY21 stood at Rs 388 million, an improvement of 210.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -126 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -201 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 62 million from the Rs 6 million net cash flows seen during FY20.

BHARAT BIJLEE Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	125	388	210.7%
Cash Flow from Investing Activities	Rs m	-221	-126	-
Cash Flow from Financing Activities	Rs m	102	-201	-
Net Cash Flow	Rs m	6	62	981.8%

Current Valuations for BHARAT BIJLEE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 46.1, an decline from the EPS of Rs 80.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,116.6, stands at 24.2 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 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 14.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	1,643.8	1,293.9
TTM Earnings per share	Rs	80.7	46.1
Diluted earnings per share	Rs	80.7	46.1
Price to Cash Flow	x	5.9	14.4
TTM P/E ratio	x	7.0	24.2
Price / Book Value ratio	x	0.6	0.5
Market Cap	Rs m	4,463	5,146
Dividends per share (Unadj.)	Rs	12.5	5.0

Ratio Analysis for BHARAT BIJLEE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.6x during FY20. 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 2.9x during FY21, from 4.0x during FY20. 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 2.7% during FY21, from 6.0% during FY21. 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 5.7% during FY21, from 12.1% during FY20. 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 3.1% during FY21, from 5.5% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.6	1.7
Debtors’ Days	Days	1,149	1,203
Interest coverage	x	4.0	2.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.5	3.1
Return on equity	%	6.0	2.7
Return on capital employed	%	12.1	5.7

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 up from Rs 567.3 to Rs 1,116.6, registering a gain of Rs 549.3 or around 96.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

Overall, the S&P BSE SENSEX is up 74.1% 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