BANCO PRODUCTS 2022-23 Annual Report Analysis

Tue, 26 Sep

BANCO PRODUCTS 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.

BANCO PRODUCTS Income Statement Analysis

• Operating income during the year rose 19.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.6% in FY23 as against 13.9% in FY22.
• Depreciation charges increased by 17.7% and finance costs increased by 139.4% YoY, respectively.
• Other income grew by 204.4% YoY.
• Net profit for the year grew by 54.6% YoY.
• Net profit margins during the year grew from 7.8% in FY22 to 10.1% in FY23.

BANCO PRODUCTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	19,578	23,318	19.1%
Other income	Rs m	52	157	204.4%
Total Revenues	Rs m	19,630	23,475	19.6%
Gross profit	Rs m	2,717	3,641	34.0%
Depreciation	Rs m	479	563	17.7%
Interest	Rs m	53	126	139.4%
Profit before tax	Rs m	2,238	3,108	38.9%
Tax	Rs m	713	752	5.5%
Profit after tax	Rs m	1,524	2,356	54.6%
Gross profit margin	%	13.9	15.6
Effective tax rate	%	31.9	24.2
Net profit margin	%	7.8	10.1

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

BANCO PRODUCTS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 7 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 77.8%.
• Long-term debt stood at Rs 383 million as compared to Rs 53 million during FY22, a growth of 623.6%.
• Current assets rose 25% and stood at Rs 15 billion, while fixed assets rose 17% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 19 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 24%.

BANCO PRODUCTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	9,817	10,015	2.0
Current Liabilities	Rs m	3,657	6,502	77.8
Long-term Debt	Rs m	53	383	623.6
Total Liabilities	Rs m	15,016	18,545	23.5
Current assets	Rs m	11,608	14,555	25.4
Fixed Assets	Rs m	3,408	3,990	17.1
Total Assets	Rs m	15,016	18,545	23.5

BANCO PRODUCTS Cash Flow Statement Analysis

• BANCO PRODUCTS's cash flow from operating activities (CFO) during FY23 stood at Rs -415 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -234 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 587 million, an improvement of 622% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -61 million from the Rs -583 million net cash flows seen during FY22.

BANCO PRODUCTS 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	572	-415	-
Cash Flow from Investing Activities	Rs m	-1,043	-234	-
Cash Flow from Financing Activities	Rs m	-112	587	-
Net Cash Flow	Rs m	-583	-61	-

Current Valuations for BANCO PRODUCTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.9, an improvement from the EPS of Rs 21.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 467.6, stands at 12.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 4.8 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	273.7	326.0
TTM Earnings per share	Rs	21.3	32.9
Diluted earnings per share	Rs	21.3	32.9
Price to Cash Flow	x	4.9	4.8
TTM P/E ratio	x	6.4	12.4
Price / Book Value ratio	x	1.3	1.4
Market Cap	Rs m	12,789	13,873
Dividends per share (Unadj.)	Rs	20.0	22.0

Ratio Analysis for BANCO PRODUCTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY23, from 3.2x 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 25.7x during FY23, from 43.6x 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 improved and stood at 23.5% during FY23, from 15.5% 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 improved and stood at 31.1% during FY23, from 23.2% 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 improved and stood at 13.4% during FY23, from 10.5% 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	3.2	2.2
Debtors’ Days	Days	604	647
Interest coverage	x	43.6	25.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.5	13.4
Return on equity	%	15.5	23.5
Return on capital employed	%	23.2	31.1

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

BANCO PRODUCTS Share Price Performance

Over the last one year, BANCO PRODUCTS share price has moved up from Rs 178.4 to Rs 467.6, registering a gain of Rs 289.3 or around 162.2%.

Overall, the S&P BSE SENSEX is up 11.5% over the year.

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