BHARAT ROAD NETWORK 2020-21 Annual Report Analysis

Wed, 31 Mar

BHARAT ROAD NETWORK has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

BHARAT ROAD NETWORK Income Statement Analysis

• Operating income during the year fell 30.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 81.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.7% in FY21 as against 52.5% in FY20.
• Depreciation charges increased by 8.6% and finance costs decreased by 13.6% YoY, respectively.
• Other income declined by 4.5% YoY.
• Net profit for the year grew by 559.1% YoY.
• Net profit margins during the year declined from 6.0% in FY20 to 56.3% in FY21.

BHARAT ROAD NETWORK Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,992	2,095	-30.0%
Other income	Rs m	560	535	-4.5%
Total Revenues	Rs m	3,552	2,630	-26.0%
Gross profit	Rs m	1,570	288	-81.7%
Depreciation	Rs m	364	395	8.6%
Interest	Rs m	1,934	1,672	-13.6%
Profit before tax	Rs m	-168	-1,244	640.1%
Tax	Rs m	11	-63	-670.4%
Profit after tax	Rs m	-179	-1,181	559.1%
Gross profit margin	%	52.5	13.7
Effective tax rate	%	-6.6	5.1
Net profit margin	%	-6.0	-56.3

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BHARAT ROAD NETWORK Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 5 billion as compared to Rs 6 billion in FY20, thereby witnessing an decrease of -14.4%.
• Long-term debt down at Rs 14 billion as compared to Rs 15 billion during FY20, a fall of 3.9%.
• Current assets fell 10% and stood at Rs 7 billion, while fixed assets fell 5% and stood at Rs 25 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 31 billion as against Rs 33 billion during FY20, thereby witnessing a fall of 6%.

BHARAT ROAD NETWORK Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	10,013	8,863	-11.5
Current Liabilities	Rs m	6,272	5,370	-14.4
Long-term Debt	Rs m	14,701	14,128	-3.9
Total Liabilities	Rs m	33,376	31,470	-5.7
Current assets	Rs m	7,261	6,537	-10.0
Fixed Assets	Rs m	26,115	24,934	-4.5
Total Assets	Rs m	33,376	31,470	-5.7

BHARAT ROAD NETWORK Cash Flow Statement Analysis

• BHARAT ROAD NETWORK's cash flow from operating activities (CFO) during FY21 stood at Rs 513 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 203 million from the Rs -51 million net cash flows seen during FY20.

BHARAT ROAD NETWORK Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	2,378	513	-78.4%
Cash Flow from Investing Activities	Rs m	-1,570	1,676	-
Cash Flow from Financing Activities	Rs m	-858	-1,986	-
Net Cash Flow	Rs m	-51	203	-

Current Valuations for BHARAT ROAD NETWORK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -14.1, an decline from the EPS of Rs -2.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 28.8, stands at -2.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at -4.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	35.6	25.0
TTM Earnings per share	Rs	-2.1	-14.1
Diluted earnings per share	Rs	-2.1	-14.1
Price to Cash Flow	x	13.9	-4.4
TTM P/E ratio	x	-14.3	-2.0
Price / Book Value ratio	x	0.7	0.4
Market Cap	Rs m	7,304	3,434
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BHARAT ROAD NETWORK

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 1.2x during FY20. 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 0.3x during FY21, from 0.9x during FY20. 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 -13.3% during FY21, from -1.8% during FY21. 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 1.9% during FY21, from 7.1% during FY20. 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 declined and down at 1.6% during FY21, from 5.3% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.2	1.2
Debtors’ Days	Days	1,440	2,355
Interest coverage	x	0.9	0.3
Debt to equity ratio	x	1.5	1.6
Return on assets	%	5.3	1.6
Return on equity	%	-1.8	-13.3
Return on capital employed	%	7.1	1.9

To see how BHARAT ROAD NETWORK has performed over the last 5 years, please visit here.

BHARAT ROAD NETWORK Share Price Performance

Over the last one year, BHARAT ROAD NETWORK share price has moved down from Rs 30.6 to Rs 28.8, registering a loss of Rs 1.9 or around 6.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for BHARAT ROAD NETWORK and quarterly results for BHARAT ROAD NETWORK)

Read: Latest Annual Report Analysis of BHARAT ROAD NETWORK