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BHARAT SEATS 2022-23 Annual Report Analysis

Wed, 21 Jun

BHARAT SEATS 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 SEATS Income Statement Analysis

• Operating income during the year rose 28.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 43.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.4% in FY23 as against 3.9% in FY22.
• Depreciation charges decreased by 3.1% and finance costs decreased by 6.9% YoY, respectively.
• Other income declined by 22.3% YoY.
• Net profit for the year grew by 80.9% YoY.
• Net profit margins during the year grew from 1.5% in FY22 to 2.1% in FY23.

BHARAT SEATS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,176	10,510	28.5%
Other income	Rs m	53	41	-22.3%
Total Revenues	Rs m	8,229	10,551	28.2%
Gross profit	Rs m	322	462	43.8%
Depreciation	Rs m	176	171	-3.1%
Interest	Rs m	39	36	-6.9%
Profit before tax	Rs m	159	296	86.2%
Tax	Rs m	40	81	102.1%
Profit after tax	Rs m	119	215	80.9%
Gross profit margin	%	3.9	4.4
Effective tax rate	%	25.1	27.3
Net profit margin	%	1.5	2.1

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BHARAT SEATS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -1.0%.
• Long-term debt down at Rs 326 million as compared to Rs 326 million during FY22, a fall of 0.0%.
• Current assets fell 24% and stood at Rs 1 billion, while fixed assets rose 38% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 6%.

BHARAT SEATS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,271	1,463	15.1
Current Liabilities	Rs m	1,686	1,669	-1.0
Long-term Debt	Rs m	326	326	0.0
Total Liabilities	Rs m	3,372	3,578	6.1
Current assets	Rs m	1,737	1,318	-24.1
Fixed Assets	Rs m	1,635	2,260	38.2
Total Assets	Rs m	3,372	3,578	6.1

BHARAT SEATS Cash Flow Statement Analysis

• BHARAT SEATS's cash flow from operating activities (CFO) during FY23 stood at Rs 425 million, an improvement of 172.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -591 million, an improvement of 302.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 168 million, an improvement of 1,153% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 million from the Rs -6 million net cash flows seen during FY22.

BHARAT SEATS 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	156	425	172.4%
Cash Flow from Investing Activities	Rs m	-147	-591	-
Cash Flow from Financing Activities	Rs m	-16	168	-
Net Cash Flow	Rs m	-6	3	-

Current Valuations for BHARAT SEATS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.9, an improvement from the EPS of Rs 3.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 126.6, stands at 18.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 7.3 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	260.4	334.7
TTM Earnings per share	Rs	3.8	6.9
Diluted earnings per share	Rs	3.8	6.9
Price to Cash Flow	x	7.1	7.3
TTM P/E ratio	x	17.6	18.4
Price / Book Value ratio	x	2.0	1.9
Market Cap	Rs m	2,606	2,827
Dividends per share (Unadj.)	Rs	0.8	1.4

Ratio Analysis for BHARAT SEATS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY23, from 1.0x 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 9.2x during FY23, from 5.1x 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 improved and stood at 14.7% during FY23, from 9.4% 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 18.6% during FY23, from 12.4% 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 7.0% during FY23, from 4.7% 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	1.0	0.8
Debtors’ Days	Days	494	335
Interest coverage	x	5.1	9.2
Debt to equity ratio	x	0.3	0.2
Return on assets	%	4.7	7.0
Return on equity	%	9.4	14.7
Return on capital employed	%	12.4	18.6

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 up from Rs 71.6 to Rs 126.6, registering a gain of Rs 55.0 or around 76.9%.

Overall, the S&P BSE SENSEX is up 23.1% over the year.

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