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BOROSIL 2021-22 Annual Report Analysis
Sat, 25 Jun

BOROSIL 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.

BOROSIL Income Statement Analysis

  • Operating income during the year rose 43.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 61.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.7% in FY22 as against 14.0% in FY21.
  • Depreciation charges decreased by 4.6% and finance costs decreased by 53.8% YoY, respectively.
  • Other income grew by 43.6% YoY.
  • Net profit for the year grew by 101.2% YoY.
  • Net profit margins during the year grew from 7.2% in FY21 to 10.1% in FY22.

BOROSIL Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 5,848 8,399 43.6%
Other income Rs m 174 250 43.6%
Total Revenues Rs m 6,022 8,649 43.6%
Gross profit Rs m 817 1,319 61.5%
Depreciation Rs m 355 338 -4.6%
Interest Rs m 24 11 -53.8%
Profit before tax Rs m 612 1,220 99.2%
Tax Rs m 189 368 94.8%
Profit after tax Rs m 424 852 101.2%
Gross profit margin % 14.0 15.7
Effective tax rate % 30.8 30.1
Net profit margin % 7.2 10.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

BOROSIL Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 11.6%.
  • Current assets rose 28% and stood at Rs 6 billion, while fixed assets fell 6% and stood at Rs 4 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 10 billion as against Rs 9 billion during FY21, thereby witnessing a growth of 11%.

BOROSIL Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 6,915 7,629 10.3
 
Current Liabilities Rs m 1,333 1,488 11.6
Long-term Debt Rs m 6 0 -100.0
Total Liabilities Rs m 8,591 9,546 11.1
 
Current assets Rs m 4,366 5,577 27.7
Fixed Assets Rs m 4,225 3,970 -6.0
Total Assets Rs m 8,591 9,546 11.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BOROSIL Cash Flow Statement Analysis

  • BOROSIL's cash flow from operating activities (CFO) during FY22 stood at Rs 766 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -370 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -236 million, an improvement of 48% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 160 million from the Rs 39 million net cash flows seen during FY21.

BOROSIL 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 1,857 766 -58.8%
Cash Flow from Investing Activities Rs m -1,367 -370 -
Cash Flow from Financing Activities Rs m -451 -236 -
Net Cash Flow Rs m 39 160 308.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BOROSIL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.5, an improvement from the EPS of Rs 3.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 266.4, stands at 35.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 3.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 31.8 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 51.2 73.6
TTM Earnings per share Rs 3.7 7.5
Diluted earnings per share Rs 3.7 7.5
Price to Cash Flow x 24.8 31.8
TTM P/E ratio x 45.5 35.7
Price / Book Value ratio x 3.2 5.0
Market Cap Rs m 22,022 37,831
Dividends per share (Unadj.) Rs 1.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BOROSIL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.7x during FY22, from 3.3x 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 110.3x during FY22, from 26.3x 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 improved and stood at 11.2% during FY22, from 6.1% 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 improved and stood at 16.1% during FY22, from 9.2% 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 improved and stood at 9.0% during FY22, from 5.2% 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 3.3 3.7
Debtors’ Days Days 414 323
Interest coverage x 26.3 110.3
Debt to equity ratio x 0.0 0.0
Return on assets % 5.2 9.0
Return on equity % 6.1 11.2
Return on capital employed % 9.2 16.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

BOROSIL Share Price Performance

Over the last one year, BOROSIL share price has moved up from Rs 218.3 to Rs 266.4, registering a gain of Rs 48.1 or around 22.0%.

Overall, the S&P BSE SENSEX is up 0.8% over the year.

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

Annual Report FAQs

What is the current share price of BOROSIL?

BOROSIL currently trades at Rs 357.1 per share. You can check out the latest share price performance of BOROSIL here...

What was the revenue of BOROSIL in FY22? How does it compare to earlier years?

The revenues of BOROSIL stood at Rs 8,649 m in FY22, which was up 43.6% compared to Rs 6,022 m reported in FY21.

BOROSIL's revenue has grown from Rs 3,817 m in FY19 to Rs 8,649 m in FY22.

Over the past 4 years, the revenue of BOROSIL has grown at a CAGR of 31.3%.

What was the net profit of BOROSIL in FY22? How does it compare to earlier years?

The net profit of BOROSIL stood at Rs 852 m in FY22, which was up 101.2% compared to Rs 424 m reported in FY21.

This compares to a net profit of Rs 353 m in FY20 and a net profit of Rs 250 m in FY19.

Over the past 4 years, BOROSIL net profit has grown at a CAGR of 50.6%.

What does the cash flow statement of BOROSIL reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of BOROSIL reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 766 m as compared to Rs 1,857 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -370 m as compared to Rs -1,367 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -236 m as compared to Rs -451 m in FY21.

Here's the cash flow statement of BOROSIL for the past 4 years.

(Rs m)FY19FY20FY21FY22
From Operations3995311,857766
From Investments-208-329-1,367-370
From Financial Activity-168-269-451-236
Net Cashflow91-6739160

What does the Key Ratio analysis of BOROSIL reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of BOROSIL reveals:

  • Operating profit margins witnessed a fall and down at 15.7% in FY22 as against 14.0% in FY21.
  • Net profit margins grew from 7.2% in FY21 to 10.1% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of BOROSIL for the past 4 years.

 FY19FY20FY21FY22
Operating Profit Margin (%)14.412.214.015.7
Net Profit Margin (%)6.85.67.210.1
Debt to Equity Ratio (x)0.00.00.00.0

Read: Latest Annual Report Analysis of BOROSIL

 

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