BOROSIL 2022-23 Annual Report Analysis

Tue, 4 Jul

BOROSIL has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

BOROSIL Income Statement Analysis

• Operating income during the year rose 22.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.0% in FY23 as against 15.7% in FY22.
• Depreciation charges increased by 15.9% and finance costs increased by 114.6% YoY, respectively.
• Other income grew by 6.2% YoY.
• Net profit for the year grew by 5.8% YoY.
• Net profit margins during the year declined from 10.1% in FY22 to 8.8% in FY23.

BOROSIL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,399	10,271	22.3%
Other income	Rs m	250	266	6.2%
Total Revenues	Rs m	8,649	10,537	21.8%
Gross profit	Rs m	1,319	1,339	1.5%
Depreciation	Rs m	338	392	15.9%
Interest	Rs m	11	24	114.6%
Profit before tax	Rs m	1,220	1,189	-2.6%
Tax	Rs m	368	286	-22.1%
Profit after tax	Rs m	852	902	5.8%
Gross profit margin	%	15.7	13.0
Effective tax rate	%	30.1	24.1
Net profit margin	%	10.1	8.8

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BOROSIL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 66.7%.
• Long-term debt stood at Rs 545 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 5% and stood at Rs 5 billion, while fixed assets rose 64% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 12 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 27%.

BOROSIL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,629	8,587	12.5
Current Liabilities	Rs m	1,488	2,480	66.7
Long-term Debt	Rs m	0	545	0.0
Total Liabilities	Rs m	9,546	12,109	26.8
Current assets	Rs m	4,963	5,232	5.4
Fixed Assets	Rs m	3,970	6,512	64.0
Total Assets	Rs m	9,546	12,109	26.8

BOROSIL Cash Flow Statement Analysis

• BOROSIL's cash flow from operating activities (CFO) during FY23 stood at Rs 637 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 378.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 993 million, an improvement of 521% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -139 million from the Rs 160 million net cash flows seen during FY22.

BOROSIL Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	766	637	-16.7%
Cash Flow from Investing Activities	Rs m	-370	-1,769	-
Cash Flow from Financing Activities	Rs m	-236	993	-
Net Cash Flow	Rs m	160	-139	-

Current Valuations for BOROSIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.9, an improvement from the EPS of Rs 7.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 417.5, stands at 53.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.6 times, while the price to sales ratio stands at 4.7 times.
• The company's price to cash flow (P/CF) ratio stood at 30.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	73.6	89.8
TTM Earnings per share	Rs	7.5	7.9
Diluted earnings per share	Rs	7.4	7.9
Price to Cash Flow	x	31.8	30.1
TTM P/E ratio	x	44.5	53.0
Price / Book Value ratio	x	5.0	4.5
Market Cap	Rs m	37,831	38,964
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BOROSIL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY23, from 3.3x during FY22. 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 50.6x during FY23, from 110.3x during FY22. 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 10.5% during FY23, from 11.2% during FY23. 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 13.3% during FY23, from 16.1% during FY22. 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 7.6% during FY23, from 9.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	3.3	2.1
Debtors’ Days	Days	323	327
Interest coverage	x	110.3	50.6
Debt to equity ratio	x	0.0	0.1
Return on assets	%	9.0	7.6
Return on equity	%	11.2	10.5
Return on capital employed	%	16.1	13.3

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 273.5 to Rs 417.5, registering a gain of Rs 144.0 or around 52.7%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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