BHARAT SEATS 2021-22 Annual Report Analysis

Tue, 14 Jun

BHARAT SEATS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

BHARAT SEATS Income Statement Analysis

• Operating income during the year rose 49.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.9% in FY22 as against 4.9% in FY21.
• Depreciation charges decreased by 2.1% and finance costs decreased by 8.6% YoY, respectively.
• Other income grew by 157.0% YoY.
• Net profit for the year grew by 147.9% YoY.
• Net profit margins during the year grew from 0.9% in FY21 to 1.5% in FY22.

BHARAT SEATS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	5,477	8,176	49.3%
Other income	Rs m	21	53	157.0%
Total Revenues	Rs m	5,497	8,229	49.7%
Gross profit	Rs m	269	322	19.8%
Depreciation	Rs m	180	176	-2.1%
Interest	Rs m	43	39	-8.6%
Profit before tax	Rs m	66	159	139.5%
Tax	Rs m	18	40	117.6%
Profit after tax	Rs m	48	119	147.9%
Gross profit margin	%	4.9	3.9
Effective tax rate	%	27.7	25.1
Net profit margin	%	0.9	1.5

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BHARAT SEATS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 19.5%.
• Long-term debt stood at Rs 326 million as compared to Rs 245 million during FY21, a growth of 32.9%.
• Current assets rose 42% and stood at Rs 2 billion, while fixed assets fell 3% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 3 billion as against Rs 3 billion during FY21, thereby witnessing a growth of 16%.

BHARAT SEATS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,166	1,271	9.0
Current Liabilities	Rs m	1,411	1,686	19.5
Long-term Debt	Rs m	245	326	32.9
Total Liabilities	Rs m	2,914	3,372	15.7
Current assets	Rs m	1,221	1,737	42.2
Fixed Assets	Rs m	1,692	1,635	-3.4
Total Assets	Rs m	2,914	3,372	15.7

BHARAT SEATS Cash Flow Statement Analysis

• BHARAT SEATS's cash flow from operating activities (CFO) during FY22 stood at Rs 156 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -147 million, an improvement of 19.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -16 million, an improvement of 76% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -6 million from the Rs -1 million net cash flows seen during FY21.

BHARAT SEATS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	187	156	-16.7%
Cash Flow from Investing Activities	Rs m	-122	-147	-
Cash Flow from Financing Activities	Rs m	-66	-16	-
Net Cash Flow	Rs m	-1	-6	-

Current Valuations for BHARAT SEATS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.8, an improvement from the EPS of Rs 1.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 74.2, stands at 19.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 8.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	174.4	260.4
TTM Earnings per share	Rs	1.5	3.8
Diluted earnings per share	Rs	1.5	3.8
Price to Cash Flow	x	8.5	8.8
TTM P/E ratio	x	40.4	19.5
Price / Book Value ratio	x	1.7	2.0
Market Cap	Rs m	2,032	2,606
Dividends per share (Unadj.)	Rs	0.5	0.8

Ratio Analysis for BHARAT SEATS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY22, from 0.9x during FY21. 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 5.1x during FY22, from 2.6x during FY21. 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 9.4% during FY22, from 4.1% during FY22. 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 12.4% during FY22, from 7.7% during FY21. 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 4.7% during FY22, from 3.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.9	1.0
Debtors’ Days	Days	551	494
Interest coverage	x	2.6	5.1
Debt to equity ratio	x	0.2	0.3
Return on assets	%	3.1	4.7
Return on equity	%	4.1	9.4
Return on capital employed	%	7.7	12.4

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

BHARAT SEATS Share Price Performance

Over the last one year, BHARAT SEATS share price has moved down from Rs 78.0 to Rs 74.2, registering a loss of Rs 3.8 or around 4.9%.

Overall, the S&P BSE SENSEX is up 1.0% over the year.

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

Read: Latest Annual Report Analysis of BHARAT SEATS