BERGER PAINTS 2019-20 Annual Report Analysis

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BERGER PAINTS 2019-20 Annual Report Analysis
Tue, 20 Oct

BERGER PAINTS has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

BERGER PAINTS Income Statement Analysis

  • Operating income during the year rose 5.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 13.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.7% in FY20 as against 15.5% in FY19.
  • Depreciation charges increased by 4.8% and finance costs decreased by 0.4% YoY, respectively.
  • Other income grew by 14.1% YoY.
  • Net profit for the year grew by 32.8% YoY.
  • Net profit margins during the year grew from 8.1% in FY19 to 10.2% in FY20.

BERGER PAINTS Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 60,619 63,658 5.0%
Other income Rs m 600 685 14.1%
Total Revenues Rs m 61,219 64,343 5.1%
Gross profit Rs m 9,374 10,610 13.2%
Depreciation Rs m 1,823 1,910 4.8%
Interest Rs m 472 470 -0.4%
Profit before tax Rs m 7,679 8,915 16.1%
Tax Rs m 2,732 2,271 -16.9%
Profit after tax Rs m 4,939 6,561 32.8%
Gross profit margin % 15.5 16.7
Effective tax rate % 35.6 25.5
Net profit margin % 8.1 10.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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BERGER PAINTS Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 17 billion as compared to Rs 15 billion in FY19, thereby witnessing an increase of 11.3%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY19, a growth of 1.9%.
  • Current assets rose 0% and stood at Rs 26 billion, while fixed assets rose 32% and stood at Rs 22 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 49 billion as against Rs 46 billion during FY19, thereby witnessing a growth of 7%.

BERGER PAINTS Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 24,727 26,601 7.6
 
Current Liabilities Rs m 15,330 17,066 11.3
Long-term Debt Rs m 2,389 2,434 1.9
Total Liabilities Rs m 45,670 49,050 7.4
 
Current assets Rs m 25,836 25,865 0.1
Fixed Assets Rs m 16,861 22,299 32.2
Total Assets Rs m 45,670 49,050 7.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BERGER PAINTS Cash Flow Statement Analysis

  • BERGER PAINTS's cash flow from operating activities (CFO) during FY20 stood at Rs 7 billion, an improvement of 18.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -5 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 219 million from the Rs -265 million net cash flows seen during FY19.

BERGER PAINTS Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 6,108 7,246 18.6%
Cash Flow from Investing Activities Rs m -3,786 -2,234 -
Cash Flow from Financing Activities Rs m -2,588 -4,794 -
Net Cash Flow Rs m -265 219 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BERGER PAINTS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.8, an improvement from the EPS of Rs 5.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 618.5, stands at 118.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 16.2 times, while the price to sales ratio stands at 6.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 70.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 62.4 65.5
TTM Earnings per share Rs 5.1 6.8
Diluted earnings per share Rs 5.1 6.8
Price to Cash Flow x 88.7 70.2
TTM P/E ratio x 118.4 118.4
Price / Book Value ratio x 11.8 16.2
Market Cap Rs m 600,582 600,576
Dividends per share (Unadj.) Rs 1.9 2.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for BERGER PAINTS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY20, from 1.7x during FY19. 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 20.0x during FY20, from 17.3x during FY19. 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 24.7% during FY20, from 20.0% during FY20. 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 32.0% during FY20, from 30.0% during FY19. 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 14.3% during FY20, from 11.8% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 1.7 1.5
Debtors’ Days Days 40 41
Interest coverage x 17.3 20.0
Debt to equity ratio x 0.1 0.1
Return on assets % 11.8 14.3
Return on equity % 20.0 24.7
Return on capital employed % 30.0 32.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how BERGER PAINTS has performed over the last 5 years, please visit here.

BERGER PAINTS Share Price Performance

Over the last one year, BERGER PAINTS share price has moved up from Rs 499.1 to Rs 618.5, registering a gain of Rs 119.5 or around 23.9%.

Overall, the S&P BSE SENSEX is up 5.0% over the year.

(To know more, check out historical annual results for BERGER PAINTS and quarterly results for BERGER PAINTS)

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Related Views on News

BERGER PAINTS Announces Quarterly Results (3QFY21); Net Profit Up 47.4% (Quarterly Result Update)

Feb 11, 2021 | Updated on Feb 11, 2021

For the quarter ended December 2020, BERGER PAINTS has posted a net profit of Rs 3 bn (up 47.4% YoY). Sales on the other hand came in at Rs 21 bn (up 24.9% YoY). Read on for a complete analysis of BERGER PAINTS's quarterly results.

BERGER PAINTS Announces Quarterly Results (1QFY21); Net Profit Down 88.9% (Quarterly Result Update)

Sep 1, 2020 | Updated on Sep 1, 2020

For the quarter ended June 2020, BERGER PAINTS has posted a net profit of Rs 196 m (down 88.9% YoY). Sales on the other hand came in at Rs 9 bn (down 45.8% YoY). Read on for a complete analysis of BERGER PAINTS's quarterly results.

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