BANSAL ROOFING PRODUCTS 2022-23 Annual Report Analysis

Tue, 26 Sep

BANSAL ROOFING PRODUCTS 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.

BANSAL ROOFING PRODUCTS Income Statement Analysis

• Operating income during the year rose 29.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.9% in FY23 as against 9.5% in FY22.
• Depreciation charges increased by 106.1% and finance costs increased by 277.7% YoY, respectively.
• Other income grew by 14.6% YoY.
• Net profit for the year grew by 5.9% YoY.
• Net profit margins during the year declined from 6.5% in FY22 to 5.4% in FY23.

BANSAL ROOFING PRODUCTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	603	779	29.2%
Other income	Rs m	2	2	14.6%
Total Revenues	Rs m	605	781	29.2%
Gross profit	Rs m	57	69	20.3%
Depreciation	Rs m	5	9	106.1%
Interest	Rs m	1	6	277.7%
Profit before tax	Rs m	53	56	5.5%
Tax	Rs m	14	14	4.4%
Profit after tax	Rs m	39	42	5.9%
Gross profit margin	%	9.5	8.9
Effective tax rate	%	25.5	25.3
Net profit margin	%	6.5	5.4

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BANSAL ROOFING PRODUCTS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 75 million as compared to Rs 104 million in FY22, thereby witnessing an decrease of -27.8%.
• Long-term debt down at Rs 48 million as compared to Rs 49 million during FY22, a fall of 1.5%.
• Current assets fell 27% and stood at Rs 118 million, while fixed assets rose 30% and stood at Rs 253 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 371 million as against Rs 356 million during FY22, thereby witnessing a growth of 4%.

BANSAL ROOFING PRODUCTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	199	241	21.0
Current Liabilities	Rs m	104	75	-27.8
Long-term Debt	Rs m	49	48	-1.5
Total Liabilities	Rs m	356	371	4.2
Current assets	Rs m	161	118	-26.7
Fixed Assets	Rs m	195	253	29.7
Total Assets	Rs m	356	371	4.2

BANSAL ROOFING PRODUCTS Cash Flow Statement Analysis

• BANSAL ROOFING PRODUCTS's cash flow from operating activities (CFO) during FY23 stood at Rs 86 million, an improvement of 55.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -67 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -14 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 5 million from the Rs -2 million net cash flows seen during FY22.

BANSAL ROOFING PRODUCTS 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	55	86	55.5%
Cash Flow from Investing Activities	Rs m	-106	-67	-
Cash Flow from Financing Activities	Rs m	48	-14	-
Net Cash Flow	Rs m	-2	5	-

Current Valuations for BANSAL ROOFING PRODUCTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.2, an improvement from the EPS of Rs 3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 103.0, stands at 29.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.6 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 20.0 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	45.8	59.1
TTM Earnings per share	Rs	3.0	3.2
Diluted earnings per share	Rs	3.0	3.2
Price to Cash Flow	x	16.9	20.0
TTM P/E ratio	x	18.9	29.5
Price / Book Value ratio	x	6.0	4.3
Market Cap	Rs m	1,197	1,023
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BANSAL ROOFING PRODUCTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.5x 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 11.0x during FY23, from 36.7x 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 17.3% during FY23, from 19.8% 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 21.3% during FY23, from 22.0% 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 12.8% during FY23, from 11.5% 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	1.5	1.6
Debtors’ Days	Days	160	117
Interest coverage	x	36.7	11.0
Debt to equity ratio	x	0.2	0.2
Return on assets	%	11.5	12.8
Return on equity	%	19.8	17.3
Return on capital employed	%	22.0	21.3

To see how BANSAL ROOFING PRODUCTS has performed over the last 5 years, please visit here.

BANSAL ROOFING PRODUCTS Share Price Performance

Over the last one year, BANSAL ROOFING PRODUCTS share price has moved up from Rs 65.5 to Rs 103.0, registering a gain of Rs 37.6 or around 57.4%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 22,801.3 (up 0.3%). Over the last one year it has moved up from 17,843.8 to 22,801.3, a gain of 4,958 points (up 27.8%).

Overall, the S&P BSE SENSEX is up 11.5% over the year.

(To know more, check out historical annual results for BANSAL ROOFING PRODUCTS and quarterly results for BANSAL ROOFING PRODUCTS)