BERGER PAINTS 2022-23 Annual Report Analysis

Mon, 24 Jul

BERGER PAINTS 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.

BERGER PAINTS Income Statement Analysis

• Operating income during the year rose 8.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.2% in FY23 as against 15.2% in FY22.
• Depreciation charges increased by 3.3% and finance costs increased by 70.1% YoY, respectively.
• Other income grew by 19.4% YoY.
• Net profit for the year declined by 0.5% YoY.
• Net profit margins during the year declined from 9.5% in FY22 to 8.7% in FY23.

BERGER PAINTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	87,618	94,706	8.1%
Other income	Rs m	646	772	19.4%
Total Revenues	Rs m	88,264	95,478	8.2%
Gross profit	Rs m	13,349	13,459	0.8%
Depreciation	Rs m	2,265	2,340	3.3%
Interest	Rs m	507	863	70.1%
Profit before tax	Rs m	11,223	11,027	-1.7%
Tax	Rs m	2,893	2,743	-5.2%
Profit after tax	Rs m	8,330	8,284	-0.5%
Gross profit margin	%	15.2	14.2
Effective tax rate	%	25.8	24.9
Net profit margin	%	9.5	8.7

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BERGER PAINTS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 34 billion as compared to Rs 36 billion in FY22, thereby witnessing an decrease of -5.3%.
• Current assets fell 10% and stood at Rs 43 billion, while fixed assets rose 13% and stood at Rs 53 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 96 billion as against Rs 95 billion during FY22, thereby witnessing a growth of 1%.

BERGER PAINTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	39,202	42,906	9.4
Current Liabilities	Rs m	35,758	33,858	-5.3
Long-term Debt	Rs m	98	0	-100.0
Total Liabilities	Rs m	94,760	95,987	1.3
Current assets	Rs m	47,815	42,900	-10.3
Fixed Assets	Rs m	46,945	53,086	13.1
Total Assets	Rs m	94,760	95,987	1.3

BERGER PAINTS Cash Flow Statement Analysis

• BERGER PAINTS's cash flow from operating activities (CFO) during FY23 stood at Rs 9 billion, an improvement of 64.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -7 billion, an improvement of 26.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -91 million from the Rs -329 million net cash flows seen during FY22.

BERGER PAINTS 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	5,665	9,343	64.9%
Cash Flow from Investing Activities	Rs m	-5,213	-6,591	-
Cash Flow from Financing Activities	Rs m	-781	-2,843	-
Net Cash Flow	Rs m	-329	-91	-

Current Valuations for BERGER PAINTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.5, an decline from the EPS of Rs 8.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 685.8, stands at 76.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.5 times, while the price to sales ratio stands at 7.0 times.
• The company's price to cash flow (P/CF) ratio stood at 58.0 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	90.2	97.5
TTM Earnings per share	Rs	8.6	8.5
Diluted earnings per share	Rs	8.6	8.5
Price to Cash Flow	x	64.2	58.0
TTM P/E ratio	x	82.0	76.3
Price / Book Value ratio	x	18.5	14.4
Market Cap	Rs m	724,874	616,683
Dividends per share (Unadj.)	Rs	3.1	3.2

Ratio Analysis for BERGER PAINTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.3x 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 deteriorated and stood at 13.8x during FY23, from 23.1x 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 declined and down at 19.3% during FY23, from 21.2% 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 declined and down at 27.7% during FY23, from 29.8% 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 9.5% during FY23, from 9.3% 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	1.3	1.3
Debtors’ Days	Days	4	4
Interest coverage	x	23.1	13.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.3	9.5
Return on equity	%	21.2	19.3
Return on capital employed	%	29.8	27.7

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 588.9 to Rs 685.8, registering a gain of Rs 96.9 or around 16.5%.

Overall, the S&P BSE SENSEX is up 20.0% over the year.

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