BOMBAY RAYON F 2021-22 Annual Report Analysis

Tue, 8 Nov

BOMBAY RAYON F 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.

BOMBAY RAYON F Income Statement Analysis

• Operating income during the year rose 614.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 152.0% in FY22 as against 218.3% in FY21.
• Depreciation charges increased by 12.4% and finance costs increased by 5.2% YoY, respectively.
• Other income grew by 1.2% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 96.9% in FY21 to 169.8% in FY22.

BOMBAY RAYON F Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,088	7,775	614.8%
Other income	Rs m	85	86	1.2%
Total Revenues	Rs m	1,172	7,861	570.6%
Gross profit	Rs m	-2,375	-11,821	NA
Depreciation	Rs m	1,039	1,168	12.4%
Interest	Rs m	1,465	1,541	5.2%
Profit before tax	Rs m	-4,794	-14,444	NA
Tax	Rs m	-3,741	-1,243	NA
Profit after tax	Rs m	-1,054	-13,201	NA
Gross profit margin	%	-218.3	-152.0
Effective tax rate	%	78.0	8.6
Net profit margin	%	-96.9	-169.8

Emerging Opportunity: Bluechip Bull Run

BOMBAY RAYON F Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 44 billion as compared to Rs 46 billion in FY21, thereby witnessing an decrease of -4.1%.
• Long-term debt stood at Rs 9 billion as compared to Rs 8 billion during FY21, a growth of 16.4%.
• Current assets fell 57% and stood at Rs 8 billion, while fixed assets fell 1% and stood at Rs 21 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 30 billion as against Rs 41 billion during FY21, thereby witnessing a fall of 26%.

BOMBAY RAYON F Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	6,835	-4,558	NA
Current Liabilities	Rs m	46,121	44,212	-4.1
Long-term Debt	Rs m	7,838	9,122	16.4
Total Liabilities	Rs m	40,952	30,206	-26.2
Current assets	Rs m	19,435	8,344	-57.1
Fixed Assets	Rs m	21,517	21,397	-0.6
Total Assets	Rs m	40,952	30,206	-26.2

BOMBAY RAYON F Cash Flow Statement Analysis

• BOMBAY RAYON F's cash flow from operating activities (CFO) during FY22 stood at Rs -16 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 2 billion, an improvement of 866% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -15 billion from the Rs -91 million net cash flows seen during FY21.

BOMBAY RAYON F 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	3,656	-15,826	-
Cash Flow from Investing Activities	Rs m	-3,435	-1,199	-
Cash Flow from Financing Activities	Rs m	-313	2,393	-
Net Cash Flow	Rs m	-91	-14,631	-

Current Valuations for BOMBAY RAYON F

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -41.6, an decline from the EPS of Rs -3.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1.9, stands at 0.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.1 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at -0.2 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	3.4	24.5
TTM Earnings per share	Rs	-3.3	-41.6
Diluted earnings per share	Rs	-3.3	-41.6
Price to Cash Flow	x	-151.4	-0.2
TTM P/E ratio	x	2.2	0.0
Price / Book Value ratio	x	0.4	-0.7
Market Cap	Rs m	2,956	3,002
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BOMBAY RAYON F

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.2x during FY22, from 0.4x 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 deteriorated and stood at -8.4x during FY22, from -2.3x 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 289.6% during FY22, from -15.4% 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 -282.7% during FY22, from -22.7% 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 -38.6% during FY22, from 1.0% 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	0.4	0.2
Debtors’ Days	Days	377	12
Interest coverage	x	-2.3	-8.4
Debt to equity ratio	x	1.1	-2.0
Return on assets	%	1.0	-38.6
Return on equity	%	-15.4	289.6
Return on capital employed	%	-22.7	-282.7

To see how BOMBAY RAYON F has performed over the last 5 years, please visit here.

BOMBAY RAYON F Share Price Performance

Over the last one year, BOMBAY RAYON F share price has moved down from Rs 6.9 to Rs 1.9, registering a loss of Rs 5.0 or around 72.2%.

Overall, the S&P BSE SENSEX is up 1.9% over the year.

(To know more, check out historical annual results for BOMBAY RAYON F and quarterly results for BOMBAY RAYON F)