BRIGADE ENTERPRISES 2022-23 Annual Report Analysis

Tue, 18 Jul

BRIGADE ENTERPRISES 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.

BRIGADE ENTERPRISES Income Statement Analysis

• Operating income during the year rose 14.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.4% in FY23 as against 23.8% in FY22.
• Depreciation charges decreased by 10.3% and finance costs decreased by 2.1% YoY, respectively.
• Other income grew by 77.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 2.2% in FY22 to 6.4% in FY23.

BRIGADE ENTERPRISES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	29,988	34,446	14.9%
Other income	Rs m	667	1,186	77.7%
Total Revenues	Rs m	30,655	35,632	16.2%
Gross profit	Rs m	7,124	9,081	27.5%
Depreciation	Rs m	3,505	3,146	-10.3%
Interest	Rs m	4,436	4,342	-2.1%
Profit before tax	Rs m	-150	2,780	NA
Tax	Rs m	497	558	12.3%
Profit after tax	Rs m	-648	2,222	NA
Gross profit margin	%	23.8	26.4
Effective tax rate	%	-330.6	20.1
Net profit margin	%	-2.2	6.4

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BRIGADE ENTERPRISES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 88 billion as compared to Rs 76 billion in FY22, thereby witnessing an increase of 15.4%.
• Long-term debt down at Rs 42 billion as compared to Rs 44 billion during FY22, a fall of 4.4%.
• Current assets rose 14% and stood at Rs 97 billion, while fixed assets rose 0% and stood at Rs 63 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 160 billion as against Rs 148 billion during FY22, thereby witnessing a growth of 8%.

BRIGADE ENTERPRISES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	29,065	32,377	11.4
Current Liabilities	Rs m	75,851	87,521	15.4
Long-term Debt	Rs m	43,851	41,933	-4.4
Total Liabilities	Rs m	148,370	160,338	8.1
Current assets	Rs m	85,209	97,121	14.0
Fixed Assets	Rs m	63,161	63,216	0.1
Total Assets	Rs m	148,370	160,338	8.1

BRIGADE ENTERPRISES Cash Flow Statement Analysis

• BRIGADE ENTERPRISES's cash flow from operating activities (CFO) during FY23 stood at Rs 10 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 6 million from the Rs 940 million net cash flows seen during FY22.

BRIGADE ENTERPRISES 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	10,321	9,665	-6.4%
Cash Flow from Investing Activities	Rs m	-9,714	-2,706	-
Cash Flow from Financing Activities	Rs m	334	-6,952	-
Net Cash Flow	Rs m	940	6	-99.3%

Current Valuations for BRIGADE ENTERPRISES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.6, an improvement from the EPS of Rs -2.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 589.0, stands at 62.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 20.9 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	130.2	149.3
TTM Earnings per share	Rs	-2.8	9.6
Diluted earnings per share	Rs	-2.8	9.6
Price to Cash Flow	x	41.8	20.9
TTM P/E ratio	x	-177.0	62.3
Price / Book Value ratio	x	3.1	3.5
Market Cap	Rs m	90,395	111,934
Dividends per share (Unadj.)	Rs	1.5	2.0

Ratio Analysis for BRIGADE ENTERPRISES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.1x 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 improved and stood at 1.6x during FY23, from 1.0x 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 6.9% during FY23, from -2.2% 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 improved and stood at 9.6% during FY23, from 5.9% 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 4.1% during FY23, from 2.6% 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	1.1	1.1
Debtors’ Days	Days	614	489
Interest coverage	x	1.0	1.6
Debt to equity ratio	x	1.5	1.3
Return on assets	%	2.6	4.1
Return on equity	%	-2.2	6.9
Return on capital employed	%	5.9	9.6

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 465.8 to Rs 589.0, registering a gain of Rs 123.2 or around 26.4%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,281.2 (down 0.9%). Over the last one year it has moved up from 3,386.0 to 4,281.2, a gain of 895 points (up 26.4%).

Overall, the S&P BSE SENSEX is up 25.0% over the year.

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