BRIGADE ENTERPRISES 2018-19 Annual Report Analysis

Sun, 31 Mar

BRIGADE ENTERPRISES has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

BRIGADE ENTERPRISES Income Statement Analysis

• Operating income during the year rose 56.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 45.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.6% in FY19 as against 28.6% in FY18.
• Depreciation charges increased by 1.7% and finance costs increased by 7.4% YoY, respectively.
• Other income grew by 10.4% YoY.
• Net profit for the year grew by 112.0% YoY.
• Net profit margins during the year grew from 7.0% in FY18 to 9.4% in FY19.

BRIGADE ENTERPRISES Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	18,972	29,728	56.7%
Other income	Rs m	502	554	10.4%
Total Revenues	Rs m	19,474	30,282	55.5%
Gross profit	Rs m	5,429	7,897	45.4%
Depreciation	Rs m	1,377	1,400	1.7%
Interest	Rs m	2,594	2,785	7.4%
Profit before tax	Rs m	1,960	4,266	117.6%
Tax	Rs m	635	1,458	129.4%
Profit after tax	Rs m	1,325	2,808	112.0%
Gross profit margin	%	28.6	26.6
Effective tax rate	%	32.4	34.2
Net profit margin	%	7.0	9.4

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BRIGADE ENTERPRISES Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 50 billion as compared to Rs 25 billion in FY18, thereby witnessing an increase of 100.9%.
• Long-term debt stood at Rs 33 billion as compared to Rs 26 billion during FY18, a growth of 25.9%.
• Current assets rose 86% and stood at Rs 58 billion, while fixed assets rose 5% and stood at Rs 49 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 107 billion as against Rs 78 billion during FY18, thereby witnessing a growth of 37%.

BRIGADE ENTERPRISES Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	22,865	21,675	-5.2
Current Liabilities	Rs m	24,681	49,579	100.9
Long-term Debt	Rs m	26,331	33,156	25.9
Total Liabilities	Rs m	78,097	106,858	36.8
Current assets	Rs m	31,048	57,618	85.6
Fixed Assets	Rs m	47,050	49,240	4.7
Total Assets	Rs m	78,097	106,858	36.8

BRIGADE ENTERPRISES Cash Flow Statement Analysis

• BRIGADE ENTERPRISES's cash flow from operating activities (CFO) during FY19 stood at Rs 5 billion, an improvement of 858.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 448 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 600 million from the Rs -38 million net cash flows seen during FY18.

BRIGADE ENTERPRISES Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	487	4,672	858.8%
Cash Flow from Investing Activities	Rs m	-10,842	-4,520	-
Cash Flow from Financing Activities	Rs m	10,317	448	-95.7%
Net Cash Flow	Rs m	-38	600	-

Current Valuations for BRIGADE ENTERPRISES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.6, an improvement from the EPS of Rs 9.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 249.7, stands at 20.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 7.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	139.4	218.3
TTM Earnings per share	Rs	9.7	20.6
Diluted earnings per share	Rs	5.7	12.2
Price to Cash Flow	x	20.9	7.5
TTM P/E ratio	x	42.6	20.5
Price / Book Value ratio	x	1.6	1.5
Market Cap	Rs m	37,130	31,710
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for BRIGADE ENTERPRISES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY19, from 1.3x during FY18. 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 2.5x during FY19, from 1.8x during FY18. 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 13.0% during FY19, from 5.8% during FY19. 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 12.9% during FY19, from 9.3% during FY18. 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 5.2% during FY19, from 5.0% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	1.3	1.2
Debtors’ Days	Days	340	517
Interest coverage	x	1.8	2.5
Debt to equity ratio	x	1.2	1.5
Return on assets	%	5.0	5.2
Return on equity	%	5.8	13.0
Return on capital employed	%	9.3	12.9

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

BRIGADE ENTERPRISES Share Price Performance

Over the last one year, BRIGADE ENTERPRISES share price has moved up from Rs 245.3 to Rs 249.7, registering a gain of Rs 4.4 or around 1.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,077.1 (up 0.6%). Over the last one year it has moved down from 2,229.9 to 2,077.1, a loss of 153 points (down 6.9%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Read: Latest Annual Report Analysis of BRIGADE ENTERPRISES