BLS INTERNATIONAL SERVICES 2022-23 Annual Report Analysis

Fri, 31 Mar

BLS INTERNATIONAL SERVICES 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.

BLS INTERNATIONAL SERVICES Income Statement Analysis

• Operating income during the year rose 78.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 103.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.5% in FY23 as against 12.7% in FY22.
• Depreciation charges increased by 155.0% and finance costs increased by 41.2% YoY, respectively.
• Other income grew by 42.1% YoY.
• Net profit for the year grew by 83.7% YoY.
• Net profit margins during the year grew from 13.1% in FY22 to 13.5% in FY23.

BLS INTERNATIONAL SERVICES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,499	15,162	78.4%
Other income	Rs m	149	213	42.1%
Total Revenues	Rs m	8,648	15,374	77.8%
Gross profit	Rs m	1,081	2,203	103.8%
Depreciation	Rs m	73	185	155.0%
Interest	Rs m	18	26	41.2%
Profit before tax	Rs m	1,140	2,205	93.5%
Tax	Rs m	28	162	488.6%
Profit after tax	Rs m	1,112	2,043	83.7%
Gross profit margin	%	12.7	14.5
Effective tax rate	%	2.4	7.4
Net profit margin	%	13.1	13.5

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BLS INTERNATIONAL SERVICES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 545 million in FY22, thereby witnessing an increase of 83.8%.
• Current assets rose 44% and stood at Rs 6 billion, while fixed assets rose 61% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 50%.

BLS INTERNATIONAL SERVICES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,698	8,027	40.9
Current Liabilities	Rs m	545	1,002	83.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,247	9,377	50.1
Current assets	Rs m	3,954	5,694	44.0
Fixed Assets	Rs m	2,292	3,683	60.7
Total Assets	Rs m	6,247	9,377	50.1

BLS INTERNATIONAL SERVICES Cash Flow Statement Analysis

• BLS INTERNATIONAL SERVICES's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 40.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 38.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 72 million, an improvement of 160% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 300 million from the Rs 18 million net cash flows seen during FY22.

BLS INTERNATIONAL SERVICES 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	1,853	2,605	40.6%
Cash Flow from Investing Activities	Rs m	-1,715	-2,377	-
Cash Flow from Financing Activities	Rs m	-121	72	-
Net Cash Flow	Rs m	18	300	1,595.9%

Current Valuations for BLS INTERNATIONAL SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.0, an decline from the EPS of Rs 10.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 165.6, stands at 33.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.5 times, while the price to sales ratio stands at 4.5 times.
• The company's price to cash flow (P/CF) ratio stood at 24.7 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	83.0	36.9
TTM Earnings per share	Rs	10.9	5.0
Diluted earnings per share	Rs	2.7	5.0
Price to Cash Flow	x	20.3	24.7
TTM P/E ratio	x	21.6	33.4
Price / Book Value ratio	x	3.5	6.9
Market Cap	Rs m	19,991	55,006
Dividends per share (Unadj.)	Rs	1.3	0.8

Ratio Analysis for BLS INTERNATIONAL SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 5.7x during FY23, from 7.3x 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 improved and stood at 86.7x during FY23, from 63.5x 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 improved and stood at 25.4% during FY23, from 19.5% 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 improved and stood at 27.8% during FY23, from 20.3% 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 improved and stood at 22.1% during FY23, from 18.1% 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	7.3	5.7
Debtors’ Days	Days	96	79
Interest coverage	x	63.5	86.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.1	22.1
Return on equity	%	19.5	25.4
Return on capital employed	%	20.3	27.8

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 58.4 to Rs 165.6, registering a gain of Rs 107.2 or around 183.7%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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