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BLUE STAR 2018-19 Annual Report Analysis
Sun, 31 Mar

BLUE STAR has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

BLUE STAR Income Statement Analysis

  • Operating income during the year rose 13.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 55.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.7% in FY19 as against 4.8% in FY18.
  • Depreciation charges increased by 17.4% and finance costs increased by 66.6% YoY, respectively.
  • Other income declined by 61.5% YoY.
  • Net profit for the year grew by 43.1% YoY.
  • Net profit margins during the year grew from 3.2% in FY18 to 4.0% in FY19.

BLUE STAR Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 46,298 52,348 13.1%
Other income Rs m 642 247 -61.5%
Total Revenues Rs m 46,940 52,595 12.0%
Gross profit Rs m 2,239 3,492 55.9%
Depreciation Rs m 638 749 17.4%
Interest Rs m 287 479 66.6%
Profit before tax Rs m 1,956 2,511 28.4%
Tax Rs m 494 420 -15.0%
Profit after tax Rs m 1,462 2,092 43.1%
Gross profit margin % 4.8 6.7
Effective tax rate % 25.3 16.7
Net profit margin % 3.2 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

BLUE STAR Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 24 billion as compared to Rs 24 billion in FY18, thereby witnessing an increase of 2.2%.
  • Long-term debt down at Rs 87 million as compared to Rs 259 million during FY18, a fall of 66.6%.
  • Current assets rose 3% and stood at Rs 27 billion, while fixed assets rose 7% and stood at Rs 6 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 32 billion as against Rs 31 billion during FY18, thereby witnessing a growth of 4%.

BLUE STAR Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 7,896 8,731 10.6
 
Current Liabilities Rs m 23,973 24,489 2.2
Long-term Debt Rs m 259 87 -66.6
Total Liabilities Rs m 31,227 32,434 3.9
 
Current assets Rs m 25,785 26,606 3.2
Fixed Assets Rs m 5,441 5,828 7.1
Total Assets Rs m 31,227 32,434 3.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BLUE STAR Cash Flow Statement Analysis

  • BLUE STAR's cash flow from operating activities (CFO) during FY19 stood at Rs 3 billion, an improvement of 1,269.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -649 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 128 million from the Rs -181 million net cash flows seen during FY18.

BLUE STAR Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 189 2,584 1,269.4%
Cash Flow from Investing Activities Rs m -883 -649 -
Cash Flow from Financing Activities Rs m 514 -1,808 -
Net Cash Flow Rs m -181 128 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BLUE STAR

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.7, an improvement from the EPS of Rs 15.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 678.2, stands at 31.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.5 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 22.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 482.3 543.5
TTM Earnings per share Rs 15.2 21.7
Diluted earnings per share Rs 15.2 21.7
Price to Cash Flow x 34.6 22.9
TTM P/E ratio x 48.7 31.7
Price / Book Value ratio x 8.7 7.4
Market Cap Rs m 68,745 65,002
Dividends per share (Unadj.) Rs 10.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BLUE STAR

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY19, from 1.1x during FY18. 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 6.2x during FY19, from 7.8x during FY18. 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 24.0% during FY19, from 18.5% during FY19. 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 33.9% during FY19, from 27.5% during FY18. 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 7.9% during FY19, from 5.6% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.1 1.1
Debtors’ Days Days 7 8
Interest coverage x 7.8 6.2
Debt to equity ratio x 0.0 0.0
Return on assets % 5.6 7.9
Return on equity % 18.5 24.0
Return on capital employed % 27.5 33.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how BLUE STAR has performed over the last 5 years, please visit here.

BLUE STAR Share Price Performance

Over the last one year, BLUE STAR share price has moved down from Rs 754.0 to Rs 678.2, registering a loss of Rs 75.8 or around 10.1%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 23,856.7 (up 0.7%). Over the last one year it has moved up from 22,261.9 to 23,856.7, a gain of 1,595 points (up 7.2%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for BLUE STAR and quarterly results for BLUE STAR)

Annual Report FAQs

What is the current share price of BLUE STAR?

BLUE STAR currently trades at Rs 1,270.8 per share. You can check out the latest share price performance of BLUE STAR here...

What was the revenue of BLUE STAR in FY19? How does it compare to earlier years?

The revenues of BLUE STAR stood at Rs 52,595 m in FY19, which was up 12.0% compared to Rs 46,940 m reported in FY18.

BLUE STAR's revenue has grown from Rs 30,641 m in FY15 to Rs 52,595 m in FY19.

Over the past 5 years, the revenue of BLUE STAR has grown at a CAGR of 14.5%.

What was the net profit of BLUE STAR in FY19? How does it compare to earlier years?

The net profit of BLUE STAR stood at Rs 2,092 m in FY19, which was up 43.1% compared to Rs 1,462 m reported in FY18.

This compares to a net profit of Rs 1,220 m in FY17 and a net profit of Rs 1,048 m in FY16.

Over the past 5 years, BLUE STAR net profit has grown at a CAGR of 8.2%.

What does the cash flow statement of BLUE STAR reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of BLUE STAR reveals:

  • Cash flow from operations increased in FY19 and stood at Rs 2,584 m as compared to Rs 189 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs -649 m as compared to Rs -883 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -1,808 m as compared to Rs 514 m in FY18.

Here's the cash flow statement of BLUE STAR for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations1,9222,5671,5851892,584
From Investments-201-652694-883-649
From Financial Activity-1,987-1,949-2,031514-1,808
Net Cashflow-266133249-181128

What does the Key Ratio analysis of BLUE STAR reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of BLUE STAR reveals:

  • Operating profit margins witnessed a fall and down at 6.7% in FY19 as against 4.8% in FY18.
  • Net profit margins grew from 3.2% in FY18 to 4.0% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of BLUE STAR for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)7.15.45.14.86.7
Net Profit Margin (%)5.02.82.83.24.0
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of BLUE STAR

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