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BOMBAY BURMAH 2020-21 Annual Report Analysis

Wed, 31 Mar

BOMBAY BURMAH 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.

BOMBAY BURMAH Income Statement Analysis

• Operating income during the year rose 12.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 39.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.0% in FY21 as against 14.6% in FY20.
• Depreciation charges increased by 6.4% and finance costs increased by 21.8% YoY, respectively.
• Other income grew by 3.6% YoY.
• Net profit for the year grew by 34.4% YoY.
• Net profit margins during the year grew from 9.7% in FY20 to 11.5% in FY21.

BOMBAY BURMAH Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	118,893	133,962	12.7%
Other income	Rs m	3,271	3,388	3.6%
Total Revenues	Rs m	122,165	137,349	12.4%
Gross profit	Rs m	17,315	24,138	39.4%
Depreciation	Rs m	2,000	2,127	6.4%
Interest	Rs m	1,239	1,508	21.8%
Profit before tax	Rs m	17,348	23,891	37.7%
Tax	Rs m	5,873	8,465	44.1%
Profit after tax	Rs m	11,475	15,426	34.4%
Gross profit margin	%	14.6	18.0
Effective tax rate	%	33.9	35.4
Net profit margin	%	9.7	11.5

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BOMBAY BURMAH Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 39 billion as compared to Rs 32 billion in FY20, thereby witnessing an increase of 22.6%.
• Long-term debt stood at Rs 11 billion as compared to Rs 8 billion during FY20, a growth of 46.5%.
• Current assets rose 45% and stood at Rs 60 billion, while fixed assets fell 11% and stood at Rs 64 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 124 billion as against Rs 113 billion during FY20, thereby witnessing a growth of 10%.

BOMBAY BURMAH Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	50,768	54,621	7.6
Current Liabilities	Rs m	31,716	38,889	22.6
Long-term Debt	Rs m	7,698	11,275	46.5
Total Liabilities	Rs m	113,293	124,177	9.6
Current assets	Rs m	41,436	59,949	44.7
Fixed Assets	Rs m	71,857	64,228	-10.6
Total Assets	Rs m	113,293	124,177	9.6

BOMBAY BURMAH Cash Flow Statement Analysis

• BOMBAY BURMAH's cash flow from operating activities (CFO) during FY21 stood at Rs 17 billion, an improvement of 18.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -9 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 4 billion from the Rs 332 million net cash flows seen during FY20.

BOMBAY BURMAH 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	14,094	16,632	18.0%
Cash Flow from Investing Activities	Rs m	-16,486	-3,653	-
Cash Flow from Financing Activities	Rs m	2,667	-8,629	-
Net Cash Flow	Rs m	332	4,326	1,203.2%

Current Valuations for BOMBAY BURMAH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 221.1, an improvement from the EPS of Rs 164.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,110.8, stands at 5.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 4.5 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	1,704.1	1,920.0
TTM Earnings per share	Rs	164.5	221.1
Diluted earnings per share	Rs	164.5	221.1
Price to Cash Flow	x	3.8	4.5
TTM P/E ratio	x	4.4	5.0
Price / Book Value ratio	x	1.3	1.4
Market Cap	Rs m	66,939	79,100
Dividends per share (Unadj.)	Rs	1.2	1.2

Ratio Analysis for BOMBAY BURMAH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY21, from 1.3x 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 16.8x during FY21, from 15.0x 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 improved and stood at 28.2% during FY21, from 22.6% 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 improved and stood at 38.5% during FY21, from 31.8% 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 improved and stood at 13.6% during FY21, from 11.2% 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	1.3	1.5
Debtors’ Days	Days	113	85
Interest coverage	x	15.0	16.8
Debt to equity ratio	x	0.2	0.2
Return on assets	%	11.2	13.6
Return on equity	%	22.6	28.2
Return on capital employed	%	31.8	38.5

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

BOMBAY BURMAH Share Price Performance

Over the last one year, BOMBAY BURMAH share price has moved up from Rs 731.9 to Rs 1,110.8, registering a gain of Rs 378.9 or around 51.8%.

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

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

Read: Latest Annual Report Analysis of BOMBAY BURMAH