BOMBAY BURMAH 2020-21 Annual Report Analysis

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BOMBAY BURMAH 2020-21 Annual Report Analysis
Tue, 26 Oct

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 9.4% in FY20 to 11.2% 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 % 9.4 11.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 1,102.0, stands at 5.7 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 4.4 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 5.7 4.4
TTM P/E ratio x 5.7 5.7
Price / Book Value ratio x 1.3 1.4
Market Cap Rs m 76,889 76,889
Dividends per share (Unadj.) Rs 1.2 1.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 down from Rs 1,183.1 to Rs 1,102.0, registering a loss of Rs 81.1 or around 6.9%.

Overall, the S&P BSE SENSEX is up 50.9% over the year.

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

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