BHANSALI ENG 2021-22 Annual Report Analysis

Tue, 14 Jun

BHANSALI ENG has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

BHANSALI ENG Income Statement Analysis

• Operating income during the year rose 8.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 40.3% in FY22 as against 42.2% in FY21.
• Depreciation charges decreased by 2.2% and finance costs decreased by 73.3% YoY, respectively.
• Other income grew by 86.7% YoY.
• Net profit for the year grew by 4.8% YoY.
• Net profit margins during the year declined from 31.5% in FY21 to 30.4% in FY22.

BHANSALI ENG Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	10,596	11,496	8.5%
Other income	Rs m	102	190	86.7%
Total Revenues	Rs m	10,697	11,686	9.2%
Gross profit	Rs m	4,466	4,632	3.7%
Depreciation	Rs m	102	100	-2.2%
Interest	Rs m	6	2	-73.3%
Profit before tax	Rs m	4,460	4,721	5.9%
Tax	Rs m	1,126	1,226	8.9%
Profit after tax	Rs m	3,334	3,495	4.8%
Gross profit margin	%	42.2	40.3
Effective tax rate	%	25.2	26.0
Net profit margin	%	31.5	30.4

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BHANSALI ENG Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 746 million in FY21, thereby witnessing an increase of 44.7%.
• Current assets rose 51% and stood at Rs 9 billion, while fixed assets rose 12% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 11 billion as against Rs 8 billion during FY21, thereby witnessing a growth of 43%.

BHANSALI ENG Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	6,813	9,813	44.0
Current Liabilities	Rs m	746	1,079	44.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	7,772	11,082	42.6
Current assets	Rs m	6,052	9,157	51.3
Fixed Assets	Rs m	1,720	1,925	11.9
Total Assets	Rs m	7,772	11,082	42.6

BHANSALI ENG Cash Flow Statement Analysis

• BHANSALI ENG's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion, an improvement of 188.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion, an improvement of 1,348.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -498 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -522 million from the Rs 738 million net cash flows seen during FY21.

BHANSALI ENG Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	1,033	2,978	188.1%
Cash Flow from Investing Activities	Rs m	-207	-3,002	-
Cash Flow from Financing Activities	Rs m	-88	-498	-
Net Cash Flow	Rs m	738	-522	-

Current Valuations for BHANSALI ENG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.1, an improvement from the EPS of Rs 20.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 109.4, stands at 5.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 7.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	63.9	69.3
TTM Earnings per share	Rs	20.1	21.1
Diluted earnings per share	Rs	20.1	21.1
Price to Cash Flow	x	6.8	7.9
TTM P/E ratio	x	7.0	5.2
Price / Book Value ratio	x	2.5	2.9
Market Cap	Rs m	17,188	28,540
Dividends per share (Unadj.)	Rs	1.0	3.0

Ratio Analysis for BHANSALI ENG

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 8.5x during FY22, from 8.1x during FY21. 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 2,811.0x during FY22, from 708.9x during FY21. 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 35.6% during FY22, from 48.9% during FY22. 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 48.1% during FY22, from 65.5% during FY21. 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 31.5% during FY22, from 43.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	8.1	8.5
Debtors’ Days	Days	1,002	897
Interest coverage	x	708.9	2,811.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	43.0	31.5
Return on equity	%	48.9	35.6
Return on capital employed	%	65.5	48.1

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 down from Rs 188.7 to Rs 109.4, registering a loss of Rs 79.3 or around 42.0%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 18,324.8 (down 0.6%). Over the last one year it has moved up from 17,197.9 to 18,324.8, a gain of 1,127 points (up 6.6%).

Overall, the S&P BSE SENSEX is up 0.5% 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