BHARAT ELECTRONICS 2021-22 Annual Report Analysis

Sun, 7 Aug

BHARAT ELECTRONICS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

BHARAT ELECTRONICS Income Statement Analysis

• Operating income during the year rose 8.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.5% in FY22 as against 22.6% in FY21.
• Depreciation charges decreased by 1.8% and finance costs decreased by 13.9% YoY, respectively.
• Other income grew by 66.6% YoY.
• Net profit for the year grew by 13.5% YoY.
• Net profit margins during the year grew from 14.7% in FY21 to 15.3% in FY22.

BHARAT ELECTRONICS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	141,087	153,138	8.5%
Other income	Rs m	1,536	2,559	66.6%
Total Revenues	Rs m	142,623	155,696	9.2%
Gross profit	Rs m	31,851	32,904	3.3%
Depreciation	Rs m	3,873	3,802	-1.8%
Interest	Rs m	96	83	-13.9%
Profit before tax	Rs m	29,418	31,578	7.3%
Tax	Rs m	8,724	8,089	-7.3%
Profit after tax	Rs m	20,693	23,489	13.5%
Gross profit margin	%	22.6	21.5
Effective tax rate	%	29.7	25.6
Net profit margin	%	14.7	15.3

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BHARAT ELECTRONICS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 195 billion as compared to Rs 168 billion in FY21, thereby witnessing an increase of 16.0%.
• Current assets rose 15% and stood at Rs 272 billion, while fixed assets rose 7% and stood at Rs 57 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 328 billion as against Rs 290 billion during FY21, thereby witnessing a growth of 13%.

BHARAT ELECTRONICS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	110,596	119,843	8.4
Current Liabilities	Rs m	168,318	195,320	16.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	290,285	328,292	13.1
Current assets	Rs m	237,156	271,572	14.5
Fixed Assets	Rs m	53,129	56,721	6.8
Total Assets	Rs m	290,285	328,292	13.1

BHARAT ELECTRONICS Cash Flow Statement Analysis

• BHARAT ELECTRONICS's cash flow from operating activities (CFO) during FY22 stood at Rs 42 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -49 billion, an improvement of 87.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -11 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -18 billion from the Rs 14 billion net cash flows seen during FY21.

BHARAT ELECTRONICS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	50,932	41,612	-18.3%
Cash Flow from Investing Activities	Rs m	-25,952	-48,606	-
Cash Flow from Financing Activities	Rs m	-10,757	-10,772	-
Net Cash Flow	Rs m	14,223	-17,766	-

Current Valuations for BHARAT ELECTRONICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.6, an improvement from the EPS of Rs 8.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 275.9, stands at 24.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.6 times, while the price to sales ratio stands at 4.4 times.
• The company's price to cash flow (P/CF) ratio stood at 15.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	57.9	62.8
TTM Earnings per share	Rs	8.5	9.6
Diluted earnings per share	Rs	8.5	9.6
Price to Cash Flow	x	12.4	15.6
TTM P/E ratio	x	14.7	24.9
Price / Book Value ratio	x	2.3	3.5
Market Cap	Rs m	259,132	424,576
Dividends per share (Unadj.)	Rs	4.0	4.5

Ratio Analysis for BHARAT ELECTRONICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY22, from 1.4x during FY21. 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 382.8x during FY22, from 307.1x during FY21. 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 19.6% during FY22, from 18.7% during FY22. 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 26.4% during FY22, from 26.7% during FY21. 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 7.2% during FY22, from 7.2% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.4	1.4
Debtors’ Days	Days	1,698	1,455
Interest coverage	x	307.1	382.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.2	7.2
Return on equity	%	18.7	19.6
Return on capital employed	%	26.7	26.4

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 175.4 to Rs 275.9, registering a gain of Rs 100.5 or around 57.3%.

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)

Read: Latest Annual Report Analysis of BHARAT ELECTRONICS