BHARAT RASAYAN 2022-23 Annual Report Analysis

Tue, 29 Aug

BHARAT RASAYAN has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

BHARAT RASAYAN Income Statement Analysis

• Operating income during the year fell 5.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 25.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.1% in FY23 as against 19.2% in FY22.
• Depreciation charges increased by 4.4% and finance costs decreased by 17.1% YoY, respectively.
• Other income grew by 23.6% YoY.
• Net profit for the year declined by 29.2% YoY.
• Net profit margins during the year declined from 13.5% in FY22 to 10.1% in FY23.

BHARAT RASAYAN Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	13,008	12,343	-5.1%
Other income	Rs m	156	193	23.6%
Total Revenues	Rs m	13,164	12,536	-4.8%
Gross profit	Rs m	2,503	1,868	-25.4%
Depreciation	Rs m	249	260	4.4%
Interest	Rs m	73	61	-17.1%
Profit before tax	Rs m	2,337	1,740	-25.5%
Tax	Rs m	577	494	-14.4%
Profit after tax	Rs m	1,760	1,246	-29.2%
Gross profit margin	%	19.2	15.1
Effective tax rate	%	24.7	28.4
Net profit margin	%	13.5	10.1

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BHARAT RASAYAN Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -44.1%.
• Current assets fell 1% and stood at Rs 8 billion, while fixed assets fell 2% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 11 billion during FY22, thereby witnessing a fall of 1%.

BHARAT RASAYAN Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,700	8,933	16.0
Current Liabilities	Rs m	3,087	1,725	-44.1
Long-term Debt	Rs m	10	0	-100.0
Total Liabilities	Rs m	10,898	10,756	-1.3
Current assets	Rs m	8,010	7,929	-1.0
Fixed Assets	Rs m	2,888	2,828	-2.1
Total Assets	Rs m	10,898	10,756	-1.3

BHARAT RASAYAN Cash Flow Statement Analysis

• BHARAT RASAYAN's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -605 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 183 million from the Rs -263 million net cash flows seen during FY22.

BHARAT RASAYAN Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-655	2,133	-
Cash Flow from Investing Activities	Rs m	511	-605	-
Cash Flow from Financing Activities	Rs m	-248	-1,521	-
Net Cash Flow	Rs m	-263	183	-

Current Valuations for BHARAT RASAYAN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 299.5, an decline from the EPS of Rs 423.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 9,270.0, stands at 41.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 31.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	3,126.9	2,967.0
TTM Earnings per share	Rs	423.0	299.5
Diluted earnings per share	Rs	423.5	299.9
Price to Cash Flow	x	25.2	31.3
TTM P/E ratio	x	28.6	41.4
Price / Book Value ratio	x	6.6	5.3
Market Cap	Rs m	50,499	47,083
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for BHARAT RASAYAN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.6x during FY23, from 2.6x during FY22. 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 29.6x during FY23, from 32.8x during FY22. 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 13.9% during FY23, from 22.9% during FY23. 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 20.2% during FY23, from 31.3% during FY22. 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 12.2% during FY23, from 16.8% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.6	4.6
Debtors’ Days	Days	1,301	961
Interest coverage	x	32.8	29.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.8	12.2
Return on equity	%	22.9	13.9
Return on capital employed	%	31.3	20.2

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

BHARAT RASAYAN Share Price Performance

Over the last one year, BHARAT RASAYAN share price has moved down from Rs 12,303.2 to Rs 9,270.0, registering a loss of Rs 3,033.2 or around 24.7%.

Overall, the S&P BSE SENSEX is up 10.7% over the year.

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