BHARAT ELECTRONICS 2019-20 Annual Report Analysis

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BHARAT ELECTRONICS 2019-20 Annual Report Analysis
Mon, 28 Dec

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 5.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.2% in FY20 as against 23.9% in FY19.
  • Depreciation charges increased by 10.0% and finance costs decreased by 71.8% YoY, respectively.
  • Other income grew by 36.2% YoY.
  • Net profit for the year declined by 3.3% YoY.
  • Net profit margins during the year declined from 15.4% in FY19 to 14.0% 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 730 994 36.2%
Total Revenues Rs m 122,372 130,671 6.8%
Gross profit Rs m 29,062 27,545 -5.2%
Depreciation Rs m 3,381 3,719 10.0%
Interest Rs m 128 36 -71.8%
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 18,867 18,247 -3.3%
Gross profit margin % 23.9 21.2
Effective tax rate % 29.7 27.7
Net profit margin % 15.4 14.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 13% and stood at Rs 37 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 243 billion as against Rs 208 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 208,206 243,483 16.9
 
Current assets Rs m 158,744 187,381 18.0
Fixed Assets Rs m 32,769 37,027 13.0
Total Assets Rs m 208,206 243,483 16.9
* 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 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: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BHARAT ELECTRONICS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 74.9, an decline from the EPS of Rs 77.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 115.8, stands at 17.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.2 times, while the price to sales ratio stands at 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.0 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 499.4 532.3
TTM Earnings per share Rs 77.4 74.9
Diluted earnings per share Rs 7.7 7.5
Price to Cash Flow x 1.3 13.0
TTM P/E ratio x 1.7 17.2
Price / Book Value ratio x 0.3 0.2
Market Cap Rs m 28,209 282,157
Dividends per share (Unadj.) Rs 1.7 1.4
* 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 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 689.4x during FY20, from 207.1x 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 18.1% during FY20, from 20.5% 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 25.0% during FY20, from 29.1% 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 9.1% 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 161 189
Interest coverage x 207.1 689.4
Debt to equity ratio x 0.0 0.0
Return on assets % 9.1 7.5
Return on equity % 20.5 18.1
Return on capital employed % 29.1 25.0
* 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 99.7 to Rs 115.8, registering a gain of Rs 16.1 or around 16.1%.

Overall, the S&P BSE SENSEX is up 13.3% over the year.

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

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Related Views on News

BHARAT ELECTRONICS Announces Quarterly Results (3QFY21); Net Profit Up 21.7% (Quarterly Result Update)

Jan 29, 2021 | Updated on Jan 29, 2021

For the quarter ended December 2020, BHARAT ELECTRONICS has posted a net profit of Rs 3 bn (up 21.7% YoY). Sales on the other hand came in at Rs 23 bn (up 1.1% YoY). Read on for a complete analysis of BHARAT ELECTRONICS's quarterly results.

BHARAT ELECTRONICS Announces Quarterly Results (1QFY21); Net Profit Down 73.6% (Quarterly Result Update)

Aug 26, 2020 | Updated on Aug 26, 2020

For the quarter ended June 2020, BHARAT ELECTRONICS has posted a net profit of Rs 541 m (down 73.6% YoY). Sales on the other hand came in at Rs 17 bn (down 20.5% YoY). Read on for a complete analysis of BHARAT ELECTRONICS's quarterly results.

BHARAT ELECTRONICS 2018-19 Annual Report Analysis (Annual Result Update)

Sep 17, 2019 | Updated on Sep 17, 2019

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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