BLS INTERNATIONAL SERVICES 2020-21 Annual Report Analysis

Wed, 31 Mar

BLS INTERNATIONAL SERVICES has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

BLS INTERNATIONAL SERVICES Income Statement Analysis

• Operating income during the year fell 39.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 29.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.5% in FY21 as against 7.3% in FY20.
• Depreciation charges decreased by 22.2% and finance costs decreased by 52.5% YoY, respectively.
• Other income grew by 43.8% YoY.
• Net profit for the year declined by 3.9% YoY.
• Net profit margins during the year grew from 6.7% in FY20 to 10.5% in FY21.

BLS INTERNATIONAL SERVICES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	7,861	4,784	-39.1%
Other income	Rs m	130	187	43.8%
Total Revenues	Rs m	7,991	4,970	-37.8%
Gross profit	Rs m	576	409	-29.0%
Depreciation	Rs m	122	95	-22.2%
Interest	Rs m	36	17	-52.5%
Profit before tax	Rs m	548	484	-11.8%
Tax	Rs m	24	-20	-180.5%
Profit after tax	Rs m	524	503	-3.9%
Gross profit margin	%	7.3	8.5
Effective tax rate	%	4.5	-4.1
Net profit margin	%	6.7	10.5

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

BLS INTERNATIONAL SERVICES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 349 million as compared to Rs 380 million in FY20, thereby witnessing an decrease of -8.3%.
• Current assets rose 7% and stood at Rs 4 billion, while fixed assets rose 2% and stood at Rs 785 million in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 5 billion as against Rs 5 billion during FY20, thereby witnessing a growth of 6%.

BLS INTERNATIONAL SERVICES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,285	4,598	7.3
Current Liabilities	Rs m	380	349	-8.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,637	4,914	6.0
Current assets	Rs m	3,870	4,129	6.7
Fixed Assets	Rs m	767	785	2.3
Total Assets	Rs m	4,637	4,914	6.0

BLS INTERNATIONAL SERVICES Cash Flow Statement Analysis

• BLS INTERNATIONAL SERVICES's cash flow from operating activities (CFO) during FY21 stood at Rs 450 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -224 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -95 million, an improvement of 82% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 132 million from the Rs -453 million net cash flows seen during FY20.

BLS INTERNATIONAL SERVICES Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	1,159	450	-61.2%
Cash Flow from Investing Activities	Rs m	-1,074	-224	-
Cash Flow from Financing Activities	Rs m	-538	-95	-
Net Cash Flow	Rs m	-453	132	-

Current Valuations for BLS INTERNATIONAL SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.9, an decline from the EPS of Rs 5.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 92.3, stands at 37.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 13.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	76.7	46.7
TTM Earnings per share	Rs	5.1	4.9
Diluted earnings per share	Rs	2.6	2.5
Price to Cash Flow	x	9.3	13.7
TTM P/E ratio	x	11.4	37.6
Price / Book Value ratio	x	2.1	1.8
Market Cap	Rs m	8,821	8,216
Dividends per share (Unadj.)	Rs	1.0	0.5

Ratio Analysis for BLS INTERNATIONAL SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 11.8x during FY21, from 10.2x during FY20. 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 29.3x during FY21, from 16.2x during FY20. 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 10.9% during FY21, from 12.2% during FY21. 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 10.9% during FY21, from 13.6% during FY20. 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 10.6% during FY21, from 12.1% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	10.2	11.8
Debtors’ Days	Days	523	765
Interest coverage	x	16.2	29.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.1	10.6
Return on equity	%	12.2	10.9
Return on capital employed	%	13.6	10.9

To see how BLS INTERNATIONAL SERVICES has performed over the last 5 years, please visit here.

BLS INTERNATIONAL SERVICES Share Price Performance

Over the last one year, BLS INTERNATIONAL SERVICES share price has moved up from Rs 29.2 to Rs 92.3, registering a gain of Rs 63.1 or around 216.1%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for BLS INTERNATIONAL SERVICES and quarterly results for BLS INTERNATIONAL SERVICES)

Read: Latest Annual Report Analysis of BLS INTERNATIONAL SERVICES