BHANSALI ENG 2020-21 Annual Report Analysis

Wed, 31 Mar

BHANSALI ENG 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.

BHANSALI ENG Income Statement Analysis

• Operating income during the year rose 16.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 417.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 42.2% in FY21 as against 9.5% in FY20.
• Depreciation charges increased by 7.0% and finance costs increased by 462.5% YoY, respectively.
• Other income grew by 72.6% YoY.
• Net profit for the year grew by 398.9% YoY.
• Net profit margins during the year grew from 7.3% in FY20 to 31.5% in FY21.

BHANSALI ENG Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	9,134	10,596	16.0%
Other income	Rs m	59	102	72.6%
Total Revenues	Rs m	9,193	10,697	16.4%
Gross profit	Rs m	863	4,466	417.3%
Depreciation	Rs m	95	102	7.0%
Interest	Rs m	1	6	462.5%
Profit before tax	Rs m	826	4,460	439.9%
Tax	Rs m	158	1,126	613.0%
Profit after tax	Rs m	668	3,334	398.9%
Gross profit margin	%	9.5	42.2
Effective tax rate	%	19.1	25.2
Net profit margin	%	7.3	31.5

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BHANSALI ENG Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 746 million as compared to Rs 3 billion in FY20, thereby witnessing an decrease of -73.0%.
• Current assets rose 28% and stood at Rs 6 billion, while fixed assets fell 4% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 8 billion as against Rs 7 billion during FY20, thereby witnessing a growth of 19%.

BHANSALI ENG Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,562	6,813	91.3
Current Liabilities	Rs m	2,763	746	-73.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,531	7,772	19.0
Current assets	Rs m	4,742	6,052	27.6
Fixed Assets	Rs m	1,789	1,720	-3.8
Total Assets	Rs m	6,531	7,772	19.0

BHANSALI ENG Cash Flow Statement Analysis

• BHANSALI ENG's cash flow from operating activities (CFO) during FY21 stood at Rs 875 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -48 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -89 million, an improvement of 12% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 738 million from the Rs 351 million net cash flows seen during FY20.

BHANSALI ENG 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	881	875	-0.7%
Cash Flow from Investing Activities	Rs m	-429	-48	-
Cash Flow from Financing Activities	Rs m	-101	-89	-
Net Cash Flow	Rs m	351	738	110.0%

Current Valuations for BHANSALI ENG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.1, an improvement from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 140.0, stands at 7.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 5.0 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	55.1	63.9
TTM Earnings per share	Rs	4.0	20.1
Diluted earnings per share	Rs	4.0	20.1
Price to Cash Flow	x	6.3	5.0
TTM P/E ratio	x	7.2	7.0
Price / Book Value ratio	x	2.6	2.5
Market Cap	Rs m	9,374	17,188
Dividends per share (Unadj.)	Rs	0.5	1.0

Ratio Analysis for BHANSALI ENG

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 8.1x during FY21, from 1.7x 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 deteriorated and stood at 708.9x during FY21, from 738.6x 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 48.9% during FY21, from 18.8% 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 65.5% during FY21, from 23.2% 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 43.0% during FY21, from 10.2% 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	1.7	8.1
Debtors’ Days	Days	614	1,002
Interest coverage	x	738.6	708.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.2	43.0
Return on equity	%	18.8	48.9
Return on capital employed	%	23.2	65.5

To see how BHANSALI ENG has performed over the last 5 years, please visit here.

BHANSALI ENG Share Price Performance

Over the last one year, BHANSALI ENG share price has moved up from Rs 28.9 to Rs 140.0, registering a gain of Rs 111.2 or around 385.3%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,820.5 (down 0.1%). Over the last one year it has moved up from 10,020.9 to 14,820.5, a gain of 4,800 points (up 47.9%).

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

(To know more, check out historical annual results for BHANSALI ENG and quarterly results for BHANSALI ENG)

Read: Latest Annual Report Analysis of BHANSALI ENG