BHARAT ELECTRONICS 2017-18 Annual Report Analysis

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BHARAT ELECTRONICS 2017-18 Annual Report Analysis
Thu, 20 Dec

BHARAT ELECTRONICS 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.

BHARAT ELECTRONICS Income Statement Analysis

  • Operating income during the year rose 20.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 13.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.6% in FY18 as against 20.6% in FY17.
  • Depreciation charges increased by 28.4% and finance costs decreased by 83.0% YoY, respectively.
  • Other income declined by 53.4% YoY.
  • Net profit for the year declined by 6.1% YoY.
  • Net profit margins during the year declined from 16.8% in FY17 to 13.5% in FY18.

BHARAT ELECTRONICS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 86,683 104,008 20.0%
Other income Rs m 4,201 1,957 -53.4%
Total Revenues Rs m 90,885 105,965 16.6%
Gross profit Rs m 17,870 20,352 13.9%
Depreciation Rs m 2,116 2,717 28.4%
Interest Rs m 129 22 -83.0%
Profit before tax Rs m 19,826 19,570 -1.3%
Tax Rs m 4,855 5,498 13.2%
Profit after tax Rs m 15,234 14,310 -6.1%
Gross profit margin % 20.6 19.6
Effective tax rate % 24.5 28.1
Net profit margin % 16.8 13.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BHARAT ELECTRONICS Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 99 billion as compared to Rs 88 billion in FY17, thereby witnessing an increase of 12.8%.
  • Long-term debt stood at Rs 333 million as compared to Rs 167 million during FY17, a growth of 99.9%.
  • Current assets rose 2% and stood at Rs 143 billion, while fixed assets rose 22% and stood at Rs 21 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 190 billion as against Rs 176 billion during FY17, thereby witnessing a growth of 8%.

BHARAT ELECTRONICS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 77,358 80,157 3.6
 
Current Liabilities Rs m 87,508 98,679 12.8
Long-term Debt Rs m 167 333 99.9
Total Liabilities Rs m 175,963 189,515 7.7
 
Current assets Rs m 140,665 143,328 1.9
Fixed Assets Rs m 17,556 21,337 21.5
Total Assets Rs m 175,963 189,515 7.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BHARAT ELECTRONICS Cash Flow Statement Analysis

  • BHARAT ELECTRONICS's cash flow from operating activities (CFO) during FY18 stood at Rs -7 billion, an improvement of 1,026.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -64 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -12 billion, an improvement of 58% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -19 billion from the Rs 2 billion net cash flows seen during FY17.

BHARAT ELECTRONICS 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 -609 -6,866 -
Cash Flow from Investing Activities Rs m 31,145 -64 -
Cash Flow from Financing Activities Rs m -28,568 -12,024 -
Net Cash Flow Rs m 1,967 -18,954 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BHARAT ELECTRONICS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 58.7, an decline from the EPS of Rs 68.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 88.5, stands at 12.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.8 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 388.1 427.0
TTM Earnings per share Rs 68.2 58.7
Diluted earnings per share Rs 6.8 6.4
Price to Cash Flow x 1.2 11.8
TTM P/E ratio x 1.2 12.3
Price / Book Value ratio x 4.0 0.5
Market Cap Rs m 19,767 197,675
Dividends per share (Unadj.) Rs 2.3 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for BHARAT ELECTRONICS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.5x during FY18, from 1.6x 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 894.6x during FY18, from 154.9x 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 17.9% during FY18, from 19.7% 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 24.6% during FY18, from 26.1% 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 7.6% during FY18, from 8.7% 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 1.6 1.5
Debtors’ Days Days 184 200
Interest coverage x 154.9 894.6
Debt to equity ratio x 0.0 0.0
Return on assets % 8.7 7.6
Return on equity % 19.7 17.9
Return on capital employed % 26.1 24.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

BHARAT ELECTRONICS Share Price Performance

Over the last one year, BHARAT ELECTRONICS share price has moved up from Rs 185.0 to Rs 88.5, registering a loss of Rs 96.5 or around 52.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,794.4 (down 0.0%). Over the last one year it has moved up from 18,684.3 to 18,794.4, a gain of 110 points (up 0.6%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

(To know more, check out historical annual results for BHARAT ELECTRONICS and quarterly results for BHARAT ELECTRONICS)

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Here's an analysis of the annual report of BHARAT ELECTRONICS for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of BHARAT ELECTRONICS. Also includes updates on the valuation of BHARAT ELECTRONICS.

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