BHEL 2019-20 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

BHEL 2019-20 Annual Report Analysis
Wed, 21 Oct

BHEL 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.

BHEL Income Statement Analysis

  • Operating income during the year fell 29.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 111.2% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1.1% in FY20 as against 7.0% in FY19.
  • Depreciation charges increased by 5.8% and finance costs increased by 76.3% YoY, respectively.
  • Other income declined by 14.7% YoY.
  • Net profit for the year declined by 246.5% YoY.
  • Net profit margins during the year declined from 3.2% in FY19 to 6.7% in FY20.

BHEL Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 304,414 214,900 -29.4%
Other income Rs m 6,615 5,643 -14.7%
Total Revenues Rs m 311,029 220,543 -29.1%
Gross profit Rs m 21,279 -2,374 -111.2%
Depreciation Rs m 4,757 5,033 5.8%
Interest Rs m 2,884 5,085 76.3%
Profit before tax Rs m 20,253 -6,848 -133.8%
Tax Rs m 8,373 8,093 -3.3%
Profit after tax Rs m 10,024 -14,684 -246.5%
Gross profit margin % 7.0 -1.1
Effective tax rate % 41.3 -118.2
Net profit margin % 3.2 -6.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Get Details: These 3 Stocks are the Dark Horses of the Stock Market

BHEL Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 227 billion as compared to Rs 231 billion in FY19, thereby witnessing an decrease of -1.6%.
  • Long-term debt down at Rs 754 million as compared to Rs 955 million during FY19, a fall of 21.0%.
  • Current assets fell 15% and stood at Rs 327 billion, while fixed assets fell 2% and stood at Rs 31 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 608 billion as against Rs 639 billion during FY19, thereby witnessing a fall of 5%.

BHEL Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 309,043 286,607 -7.3
 
Current Liabilities Rs m 230,552 226,768 -1.6
Long-term Debt Rs m 955 754 -21.0
Total Liabilities Rs m 639,343 607,843 -4.9
 
Current assets Rs m 383,809 327,112 -14.8
Fixed Assets Rs m 32,059 31,311 -2.3
Total Assets Rs m 639,343 607,843 -4.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BHEL Cash Flow Statement Analysis

  • BHEL's cash flow from operating activities (CFO) during FY20 stood at Rs -29 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs 18 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs 17 billion, an improvement of 5,355% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 6 billion from the Rs -20 billion net cash flows seen during FY19.

BHEL 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 -38,602 -28,915 -
Cash Flow from Investing Activities Rs m 19,189 18,366 -4.3%
Cash Flow from Financing Activities Rs m -316 16,620 -
Net Cash Flow Rs m -19,729 6,071 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BHEL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.2, an decline from the EPS of Rs 2.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 28.8, stands at -7.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at -10.7 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 87.4 61.7
TTM Earnings per share Rs 2.9 -4.2
Diluted earnings per share Rs 2.7 -4.0
Price to Cash Flow x 6.0 -10.7
TTM P/E ratio x -6.8 -7.2
Price / Book Value ratio x 0.8 0.6
Market Cap Rs m 100,283 105,694
Dividends per share (Unadj.) Rs 2.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for BHEL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY20, from 1.7x 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 deteriorated and stood at -0.3x during FY20, from 8.0x 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 -5.1% during FY20, from 3.2% 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 -0.5% during FY20, from 6.9% 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 -1.6% during FY20, from 2.0% 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 1.7 1.4
Debtors’ Days Days 142 121
Interest coverage x 8.0 -0.3
Debt to equity ratio x 0.0 0.0
Return on assets % 2.0 -1.6
Return on equity % 3.2 -5.1
Return on capital employed % 6.9 -0.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

BHEL Share Price Performance

Over the last one year, BHEL share price has moved down from Rs 54.5 to Rs 28.8, registering a loss of Rs 25.7 or around 47.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 13,884.2 (up 0.8%). Over the last one year it has moved down from 18,583.4 to 13,884.2, a loss of 4,699 points (down 25.3%).

Overall, the S&P BSE SENSEX is up 4.9% over the year.

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

Equitymaster requests your view! Post a comment on "BHEL 2019-20 Annual Report Analysis". Click here!

  

Related Views on News

Mazagon Dock Shipbuilders IPO: Should You Apply? (IPO)

Sep 29, 2020

Should you bet on this public sector defence shipbuilder?

BHEL Announces Quarterly Results (3QFY20); Net Profit Down 17.3% (Quarterly Result Update)

Feb 13, 2020 | Updated on Feb 13, 2020

For the quarter ended December 2019, BHEL has posted a net profit of Rs 2 bn (down 17.3% YoY). Sales on the other hand came in at Rs 57 bn (down 22.6% YoY). Read on for a complete analysis of BHEL's quarterly results.

BHEL Announces Quarterly Results (1QFY20); Net Profit Down 239.0% (Quarterly Result Update)

Aug 13, 2019 | Updated on Aug 13, 2019

For the quarter ended June 2019, BHEL has posted a net profit of Rs 2 bn (down 239.0% YoY). Sales on the other hand came in at Rs 45 bn (down 23.7% YoY). Read on for a complete analysis of BHEL's quarterly results.

More Views on News

Most Popular

It's the Beginning of a New Bull Phase in Smallcaps(Profit Hunter)

Feb 24, 2021

Last time the smallcap index crossed 19k a big correction followed. Here's what makes it different this time.

Make Rs 5,000 Per Day Trading the Market(Fast Profits Daily)

Feb 25, 2021

In this video, I'll show you how to get started on the path to daily trading profits.

I Believe the Investment of the Year Will Be...

Feb 19, 2021

In this episode, ace trader Brijesh Bhatia talks to us about the best investments of 2021, his profitable trading system, and much more.

The Hidden Tesla in My Great Indian Wealth Project(Profit Hunter)

Feb 23, 2021

An Indian company founded three decades ago in a garage caught my attention...

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

TRACK BHEL

BHEL - DONGFANG ELEC. COMPARISON

COMPARE BHEL WITH

MARKET STATS