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BHARAT ELECTRONICS 2019-20 Annual Report Analysis
Tue, 31 Mar

BHARAT ELECTRONICS has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

BHARAT ELECTRONICS Income Statement Analysis

  • Operating income during the year rose 6.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 8.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.5% in FY20 as against 22.8% in FY19.
  • Depreciation charges increased by 10.0% and finance costs decreased by 51.9% YoY, respectively.
  • Other income grew by 54.0% YoY.
  • Net profit for the year declined by 3.0% YoY.
  • Net profit margins during the year declined from 15.2% in FY19 to 13.8% in FY20.

BHARAT ELECTRONICS Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 121,642 129,677 6.6%
Other income Rs m 2,148 3,307 54.0%
Total Revenues Rs m 123,789 132,984 7.4%
Gross profit Rs m 27,676 25,272 -8.7%
Depreciation Rs m 3,381 3,719 10.0%
Interest Rs m 159 77 -51.9%
Profit before tax Rs m 26,283 24,784 -5.7%
Tax Rs m 7,803 6,858 -12.1%
Profit after tax Rs m 18,480 17,926 -3.0%
Gross profit margin % 22.8 19.5
Effective tax rate % 29.7 27.7
Net profit margin % 15.2 13.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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BHARAT ELECTRONICS Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 129 billion as compared to Rs 104 billion in FY19, thereby witnessing an increase of 23.1%.
  • Current assets rose 18% and stood at Rs 187 billion, while fixed assets rose 14% and stood at Rs 51 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 238 billion as against Rs 203 billion during FY19, thereby witnessing a growth of 17%.

BHARAT ELECTRONICS Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 92,115 100,715 9.3
 
Current Liabilities Rs m 104,488 128,657 23.1
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 203,486 238,496 17.2
 
Current assets Rs m 158,744 187,381 18.0
Fixed Assets Rs m 44,741 51,115 14.2
Total Assets Rs m 203,486 238,496 17.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BHARAT ELECTRONICS Cash Flow Statement Analysis

  • BHARAT ELECTRONICS's cash flow from operating activities (CFO) during FY20 stood at Rs 26 billion, an improvement of 69.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -6 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -11 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 9 billion from the Rs -447 million net cash flows seen during FY19.

BHARAT ELECTRONICS Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 15,139 25,704 69.8%
Cash Flow from Investing Activities Rs m -8,959 -6,490 -
Cash Flow from Financing Activities Rs m -6,627 -10,605 -
Net Cash Flow Rs m -447 8,609 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BHARAT ELECTRONICS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.4, an decline from the EPS of Rs 7.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 74.4, stands at 10.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 49.9 53.2
TTM Earnings per share Rs 7.6 7.4
Diluted earnings per share Rs 7.6 7.4
Price to Cash Flow x 10.4 10.0
TTM P/E ratio x 11.8 10.1
Price / Book Value ratio x 2.9 2.2
Market Cap Rs m 269,974 217,222
Dividends per share (Unadj.) Rs 3.4 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BHARAT ELECTRONICS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY20, from 1.5x during FY19. 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 improved and stood at 324.6x during FY20, from 166.0x during FY19. 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 17.8% during FY20, from 20.1% during FY20. 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 24.7% during FY20, from 28.7% during FY19. 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 7.5% during FY20, from 9.2% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 1.5 1.5
Debtors’ Days Days 1,612 1,893
Interest coverage x 166.0 324.6
Debt to equity ratio x 0.0 0.0
Return on assets % 9.2 7.5
Return on equity % 20.1 17.8
Return on capital employed % 28.7 24.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 down from Rs 93.3 to Rs 74.4, registering a loss of Rs 19.0 or around 20.3%.

Overall, the S&P BSE SENSEX is down 24.2% over the year.

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

Annual Report FAQs

What is the current share price of BHARAT ELECTRONICS?

BHARAT ELECTRONICS currently trades at Rs 185.4 per share. You can check out the latest share price performance of BHARAT ELECTRONICS here...

What was the revenue of BHARAT ELECTRONICS in FY20? How does it compare to earlier years?

The revenues of BHARAT ELECTRONICS stood at Rs 132,984 m in FY20, which was up 7.4% compared to Rs 123,789 m reported in FY19.

BHARAT ELECTRONICS' revenue has grown from Rs 75,779 m in FY16 to Rs 132,984 m in FY20.

Over the past 5 years, the revenue of BHARAT ELECTRONICS has grown at a CAGR of 15.1%.

What was the net profit of BHARAT ELECTRONICS in FY20? How does it compare to earlier years?

The net profit of BHARAT ELECTRONICS stood at Rs 17,926 m in FY20, which was down -3.0% compared to Rs 18,480 m reported in FY19.

This compares to a net profit of Rs 14,073 m in FY18 and a net profit of Rs 14,970 m in FY17.

Over the past 5 years, BHARAT ELECTRONICS net profit has grown at a CAGR of 8.3%.

What does the cash flow statement of BHARAT ELECTRONICS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of BHARAT ELECTRONICS reveals:

  • Cash flow from operations increased in FY20 and stood at Rs 25,704 m as compared to Rs 15,139 m in FY19.
  • Cash flow from investments increased in FY20 and stood at Rs -6,490 m as compared to Rs -8,959 m in FY19.
  • Cash flow from financial activity decreased in FY20 and stood at Rs -10,605 m as compared to Rs -6,627 m in FY19.

Here's the cash flow statement of BHARAT ELECTRONICS for the past 5 years.

(Rs m)FY16FY17FY18FY19FY20
From Operations22,601-609-6,86615,13925,704
From Investments-14,70331,147-64-8,959-6,490
From Financial Activity-3,177-28,568-12,024-6,627-10,605
Net Cashflow4,7201,969-18,954-4478,609

What does the Key Ratio analysis of BHARAT ELECTRONICS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of BHARAT ELECTRONICS reveals:

  • Operating profit margins witnessed a fall and stood at 19.5% in FY20 as against 22.8% in FY19.
  • Net profit margins declined from 15.2% in FY19 to 13.8% in FY20.
  • Debt to Equity ratio for FY20 stood at 0.0 as compared to 0.0 in FY19.

Here's the ratio/financial analysis of BHARAT ELECTRONICS for the past 5 years.

 FY16FY17FY18FY19FY20
Operating Profit Margin (%)19.121.117.322.819.5
Net Profit Margin (%)18.718.413.615.213.8
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of BHARAT ELECTRONICS

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