BOROSIL RENEWABLES 2021-22 Annual Report Analysis

Tue, 26 Jul

BOROSIL RENEWABLES 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.

BOROSIL RENEWABLES Income Statement Analysis

• Operating income during the year rose 28.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 37.9% in FY22 as against 39.3% in FY21.
• Depreciation charges increased by 0.9% and finance costs decreased by 64.8% YoY, respectively.
• Other income grew by 284.6% YoY.
• Net profit for the year grew by 85.0% YoY.
• Net profit margins during the year grew from 17.8% in FY21 to 25.7% in FY22.

BOROSIL RENEWABLES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	5,023	6,442	28.3%
Other income	Rs m	54	206	284.6%
Total Revenues	Rs m	5,076	6,648	31.0%
Gross profit	Rs m	1,974	2,444	23.8%
Depreciation	Rs m	421	424	0.9%
Interest	Rs m	80	28	-64.8%
Profit before tax	Rs m	1,527	2,198	43.9%
Tax	Rs m	630	539	-14.5%
Profit after tax	Rs m	896	1,658	85.0%
Gross profit margin	%	39.3	37.9
Effective tax rate	%	41.3	24.5
Net profit margin	%	17.8	25.7

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BOROSIL RENEWABLES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 847 million in FY21, thereby witnessing an increase of 21.1%.
• Long-term debt stood at Rs 1 billion as compared to Rs 600 million during FY21, a growth of 132.8%.
• Current assets fell 14% and stood at Rs 4 billion, while fixed assets rose 100% and stood at Rs 7 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 11 billion as against Rs 8 billion during FY21, thereby witnessing a growth of 35%.

BOROSIL RENEWABLES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	6,120	7,835	28.0
Current Liabilities	Rs m	847	1,026	21.1
Long-term Debt	Rs m	600	1,396	132.8
Total Liabilities	Rs m	7,829	10,554	34.8
Current assets	Rs m	4,470	3,845	-14.0
Fixed Assets	Rs m	3,359	6,710	99.8
Total Assets	Rs m	7,829	10,554	34.8

BOROSIL RENEWABLES Cash Flow Statement Analysis

• BOROSIL RENEWABLES's cash flow from operating activities (CFO) during FY22 stood at Rs 2 billion, an improvement of 7.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 959 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 93 million from the Rs 14 million net cash flows seen during FY21.

BOROSIL RENEWABLES 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	1,610	1,734	7.7%
Cash Flow from Investing Activities	Rs m	-3,319	-2,600	-
Cash Flow from Financing Activities	Rs m	1,722	959	-44.3%
Net Cash Flow	Rs m	14	93	584.0%

Current Valuations for BOROSIL RENEWABLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.7, an improvement from the EPS of Rs 6.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 627.7, stands at 49.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.4 times, while the price to sales ratio stands at 12.7 times.
• The company's price to cash flow (P/CF) ratio stood at 30.2 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	38.6	49.4
TTM Earnings per share	Rs	6.9	12.7
Diluted earnings per share	Rs	6.9	12.7
Price to Cash Flow	x	24.4	30.2
TTM P/E ratio	x	35.8	49.4
Price / Book Value ratio	x	3.8	8.0
Market Cap	Rs m	23,165	62,818
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BOROSIL RENEWABLES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.7x during FY22, from 5.3x 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 improved and stood at 79.5x during FY22, from 20.2x 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 21.2% during FY22, from 14.6% 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 improved and stood at 24.1% during FY22, from 23.9% 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 improved and stood at 16.0% during FY22, from 12.5% 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	5.3	3.7
Debtors’ Days	Days	526	337
Interest coverage	x	20.2	79.5
Debt to equity ratio	x	0.1	0.2
Return on assets	%	12.5	16.0
Return on equity	%	14.6	21.2
Return on capital employed	%	23.9	24.1

To see how BOROSIL RENEWABLES has performed over the last 5 years, please visit here.

BOROSIL RENEWABLES Share Price Performance

Over the last one year, BOROSIL RENEWABLES share price has moved up from Rs 303.6 to Rs 627.7, registering a gain of Rs 324.1 or around 106.8%.

Overall, the S&P BSE SENSEX is up 5.1% over the year.

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

Read: Latest Annual Report Analysis of BOROSIL RENEWABLES