BHARAT ELECTRONICS 2018-19 Annual Report Analysis

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BHARAT ELECTRONICS 2018-19 Annual Report Analysis
Tue, 17 Sep

BHARAT ELECTRONICS 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 ELECTRONICS Income Statement Analysis

  • Operating income during the year rose 17.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 42.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.9% in FY19 as against 19.6% in FY18.
  • Depreciation charges increased by 24.4% and finance costs increased by 482.2% YoY, respectively.
  • Other income declined by 62.7% YoY.
  • Net profit for the year grew by 31.8% YoY.
  • Net profit margins during the year grew from 13.5% in FY18 to 15.4% in FY19.

BHARAT ELECTRONICS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 104,008 121,642 17.0%
Other income Rs m 1,957 730 -62.7%
Total Revenues Rs m 105,965 122,372 15.5%
Gross profit Rs m 20,352 29,062 42.8%
Depreciation Rs m 2,717 3,381 24.4%
Interest Rs m 22 128 482.2%
Profit before tax Rs m 19,570 26,283 34.3%
Tax Rs m 5,498 7,803 41.9%
Profit after tax Rs m 14,310 18,867 31.8%
Gross profit margin % 19.6 23.9
Effective tax rate % 28.1 29.7
Net profit margin % 13.5 15.4
* 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 FY19 stood at Rs 104 billion as compared to Rs 99 billion in FY18, thereby witnessing an increase of 5.6%.
  • Current assets rose 11% and stood at Rs 159 billion, while fixed assets rose 54% and stood at Rs 33 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 208 billion as against Rs 190 billion during FY18, thereby witnessing a growth of 10%.

BHARAT ELECTRONICS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 80,157 92,115 14.9
 
Current Liabilities Rs m 98,962 104,488 5.6
Long-term Debt Rs m 333 0 -100.0
Total Liabilities Rs m 189,515 208,206 9.9
 
Current assets Rs m 143,045 158,744 11.0
Fixed Assets Rs m 21,337 32,769 53.6
Total Assets Rs m 189,515 208,206 9.9
* 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 FY19 stood at Rs 15 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -9 billion, an improvement of 14,379.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -7 billion, an improvement of 45% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -447 million from the Rs -19 billion net cash flows seen during FY18.

BHARAT ELECTRONICS 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 -6,866 15,461 -
Cash Flow from Investing Activities Rs m -64 -9,281 -
Cash Flow from Financing Activities Rs m -12,024 -6,627 -
Net Cash Flow Rs m -18,954 -447 -
* 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 77.4, an improvement from the EPS of Rs 58.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 110.4, stands at 12.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.3 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 427.0 499.4
TTM Earnings per share Rs 58.7 77.4
Diluted earnings per share Rs 6.4 8.4
Price to Cash Flow x 1.6 11.3
TTM P/E ratio x 1.4 12.6
Price / Book Value ratio x 0.5 0.3
Market Cap Rs m 26,893 246,592
Dividends per share (Unadj.) Rs 2.0 1.7
* 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 FY19, from 1.4x 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 207.1x during FY19, from 894.6x 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 20.5% during FY19, from 17.9% 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 29.1% during FY19, from 24.6% 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 9.1% during FY19, from 7.6% 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 1.4 1.5
Debtors’ Days Days 176 161
Interest coverage x 894.6 207.1
Debt to equity ratio x 0.0 0.0
Return on assets % 7.6 9.1
Return on equity % 17.9 20.5
Return on capital employed % 24.6 29.1
* 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 87.1 to Rs 110.4, registering a gain of Rs 23.3 or around 26.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 17,258.2 (down 0.2%). Over the last one year it has moved down from 18,429.3 to 17,258.2, a loss of 1,171 points (down 6.4%).

Overall, the S&P BSE SENSEX is down 1.5% over the year.

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

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