BALKRISHNA INDUSTRIES 2021-22 Annual Report Analysis

Mon, 20 Jun

BALKRISHNA INDUSTRIES 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.

BALKRISHNA INDUSTRIES Income Statement Analysis

• Operating income during the year rose 43.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.2% in FY22 as against 31.3% in FY21.
• Depreciation charges increased by 9.4% and finance costs decreased by 20.5% YoY, respectively.
• Other income grew by 154.4% YoY.
• Net profit for the year grew by 21.9% YoY.
• Net profit margins during the year declined from 20.4% in FY21 to 17.3% in FY22.

BALKRISHNA INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	57,832	82,951	43.4%
Other income	Rs m	1,722	4,379	154.4%
Total Revenues	Rs m	59,554	87,330	46.6%
Gross profit	Rs m	18,108	20,090	10.9%
Depreciation	Rs m	4,163	4,554	9.4%
Interest	Rs m	118	94	-20.5%
Profit before tax	Rs m	15,549	19,822	27.5%
Tax	Rs m	3,774	5,468	44.9%
Profit after tax	Rs m	11,775	14,354	21.9%
Gross profit margin	%	31.3	24.2
Effective tax rate	%	24.3	27.6
Net profit margin	%	20.4	17.3

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BALKRISHNA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 32 billion as compared to Rs 19 billion in FY21, thereby witnessing an increase of 70.2%.
• Long-term debt stood at Rs 5 billion as compared to Rs 15 million during FY21, a growth of 33754.1%.
• Current assets rose 57% and stood at Rs 39 billion, while fixed assets rose 25% and stood at Rs 71 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 110 billion as against Rs 82 billion during FY21, thereby witnessing a growth of 34%.

BALKRISHNA INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	59,998	69,330	15.6
Current Liabilities	Rs m	19,015	32,356	70.2
Long-term Debt	Rs m	15	5,010	33,754.1
Total Liabilities	Rs m	81,665	109,790	34.4
Current assets	Rs m	24,791	38,942	57.1
Fixed Assets	Rs m	56,874	70,848	24.6
Total Assets	Rs m	81,665	109,790	34.4

BALKRISHNA INDUSTRIES Cash Flow Statement Analysis

• BALKRISHNA INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 9 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -19 billion, an improvement of 61.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 10 billion, an improvement of 720% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -90 million from the Rs 81 million net cash flows seen during FY21.

BALKRISHNA INDUSTRIES 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	13,390	9,080	-32.2%
Cash Flow from Investing Activities	Rs m	-11,734	-18,975	-
Cash Flow from Financing Activities	Rs m	-1,581	9,804	-
Net Cash Flow	Rs m	81	-90	-

Current Valuations for BALKRISHNA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 74.2, an improvement from the EPS of Rs 60.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,072.5, stands at 27.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.8 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 21.9 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	299.2	429.1
TTM Earnings per share	Rs	60.9	74.2
Diluted earnings per share	Rs	60.9	74.2
Price to Cash Flow	x	20.5	21.9
TTM P/E ratio	x	27.8	27.9
Price / Book Value ratio	x	4.2	6.0
Market Cap	Rs m	253,637	413,447
Dividends per share (Unadj.)	Rs	17.0	28.0

Ratio Analysis for BALKRISHNA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY22, from 1.3x 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 213.0x during FY22, from 133.2x 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 20.7% during FY22, from 19.6% 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 improved and stood at 26.8% during FY22, from 26.1% 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 declined and down at 13.2% during FY22, from 14.6% 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	1.3	1.2
Debtors’ Days	Days	476	482
Interest coverage	x	133.2	213.0
Debt to equity ratio	x	0.0	0.1
Return on assets	%	14.6	13.2
Return on equity	%	19.6	20.7
Return on capital employed	%	26.1	26.8

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

BALKRISHNA INDUSTRIES Share Price Performance

Over the last one year, BALKRISHNA INDUSTRIES share price has moved down from Rs 2,290.4 to Rs 2,072.5, registering a loss of Rs 217.9 or around 9.5%.

Overall, the S&P BSE SENSEX is down 1.4% over the year.

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

Read: Latest Annual Report Analysis of BALKRISHNA INDUSTRIES