BHARAT ROAD NETWORK 2022-23 Annual Report Analysis

Thu, 21 Sep

BHARAT ROAD NETWORK 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.

BHARAT ROAD NETWORK Income Statement Analysis

• Operating income during the year rose 50.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 1.6% in FY23 as against 94.8% in FY22.
• Depreciation charges increased by 32.3% and finance costs increased by 0.9% YoY, respectively.
• Other income grew by 5.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 179.6% in FY22 to 62.9% in FY23.

BHARAT ROAD NETWORK Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,164	3,263	50.8%
Other income	Rs m	226	238	5.3%
Total Revenues	Rs m	2,389	3,501	46.5%
Gross profit	Rs m	-2,051	-53	NA
Depreciation	Rs m	429	568	32.3%
Interest	Rs m	1,822	1,839	0.9%
Profit before tax	Rs m	-4,076	-2,222	NA
Tax	Rs m	-189	-170	NA
Profit after tax	Rs m	-3,887	-2,052	NA
Gross profit margin	%	-94.8	-1.6
Effective tax rate	%	4.6	7.6
Net profit margin	%	-179.6	-62.9

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BHARAT ROAD NETWORK Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 7 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 13.6%.
• Long-term debt down at Rs 12 billion as compared to Rs 13 billion during FY22, a fall of 7.4%.
• Current assets rose 3% and stood at Rs 6 billion, while fixed assets fell 8% and stood at Rs 21 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 27 billion as against Rs 28 billion during FY22, thereby witnessing a fall of 6%.

BHARAT ROAD NETWORK Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,091	3,024	-40.6
Current Liabilities	Rs m	6,319	7,180	13.6
Long-term Debt	Rs m	13,378	12,394	-7.4
Total Liabilities	Rs m	28,272	26,701	-5.6
Current assets	Rs m	5,536	5,721	3.3
Fixed Assets	Rs m	22,736	20,980	-7.7
Total Assets	Rs m	28,272	26,701	-5.6

BHARAT ROAD NETWORK Cash Flow Statement Analysis

• BHARAT ROAD NETWORK's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 1,082.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 440 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion, an improvement of 9% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 905 million from the Rs -152 million net cash flows seen during FY22.

BHARAT ROAD NETWORK 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	219	2,594	1,082.0%
Cash Flow from Investing Activities	Rs m	1,963	440	-77.6%
Cash Flow from Financing Activities	Rs m	-2,334	-2,130	-
Net Cash Flow	Rs m	-152	905	-

Current Valuations for BHARAT ROAD NETWORK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -24.4, an improvement from the EPS of Rs -46.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 40.2, stands at -1.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at -2.0 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	25.8	38.9
TTM Earnings per share	Rs	-46.3	-24.4
Diluted earnings per share	Rs	-46.3	-24.4
Price to Cash Flow	x	-0.7	-2.0
TTM P/E ratio	x	-1.0	-1.6
Price / Book Value ratio	x	0.7	1.0
Market Cap	Rs m	3,601	2,989
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BHARAT ROAD NETWORK

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY23, from 0.9x 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 -0.2x during FY23, from -1.2x 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 -67.9% during FY23, from -76.3% 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 -2.5% during FY23, from -12.2% 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 -0.8% during FY23, from -7.3% 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	0.9	0.8
Debtors’ Days	Days	2,327	659
Interest coverage	x	-1.2	-0.2
Debt to equity ratio	x	2.6	4.1
Return on assets	%	-7.3	-0.8
Return on equity	%	-76.3	-67.9
Return on capital employed	%	-12.2	-2.5

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 up from Rs 37.9 to Rs 40.2, registering a gain of Rs 2.4 or around 6.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 46,569.9 (down 0.7%). Over the last one year it has moved up from 32,293.6 to 46,569.9, a gain of 14,276 points (up 44.2%).

Overall, the S&P BSE SENSEX is up 11.0% over the year.

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