BLUE STAR 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

BLUE STAR 2018-19 Annual Report Analysis
Mon, 30 Sep

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 12.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 30.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.6% in FY19 as against 5.7% in FY18.
  • Depreciation charges increased by 17.4% and finance costs increased by 66.6% YoY, respectively.
  • Other income grew by 45.7% YoY.
  • Net profit for the year grew by 32.0% YoY.
  • Net profit margins during the year grew from 3.1% in FY18 to 3.6% in FY19.

BLUE STAR Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 46,390 52,348 12.8%
Other income Rs m 170 247 45.7%
Total Revenues Rs m 46,559 52,595 13.0%
Gross profit Rs m 2,659 3,465 30.3%
Depreciation Rs m 638 749 17.4%
Interest Rs m 287 479 66.6%
Profit before tax Rs m 1,903 2,485 30.6%
Tax Rs m 494 420 -15.0%
Profit after tax Rs m 1,440 1,901 32.0%
Gross profit margin % 5.7 6.6
Effective tax rate % 26.0 16.9
Net profit margin % 3.1 3.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Live Now: The Instant Income Summit

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 6% and stood at Rs 5 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 34 billion as against Rs 32 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 7,927 8,731 10.1
 
Current Liabilities Rs m 23,973 24,489 2.2
Long-term Debt Rs m 259 87 -66.6
Total Liabilities Rs m 32,362 33,510 3.5
 
Current assets Rs m 25,785 26,606 3.2
Fixed Assets Rs m 4,306 4,561 5.9
Total Assets Rs m 32,362 33,510 3.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 1,295.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -698 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 2,634 1,295.7%
Cash Flow from Investing Activities Rs m -883 -698 -
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: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BLUE STAR

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.7, an improvement from the EPS of Rs 15.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 794.5, stands at 37.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.4 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 25.2 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 483.2 543.5
TTM Earnings per share Rs 15.0 19.7
Diluted earnings per share Rs 16.0 21.1
Price to Cash Flow x 36.3 25.2
TTM P/E ratio x 40.2 37.6
Price / Book Value ratio x 8.7 7.4
Market Cap Rs m 76,272 71,457
Dividends per share (Unadj.) Rs 10.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 7.6x 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 21.8% during FY19, from 18.2% 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 31.7% during FY19, from 27.1% 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 7.1% during FY19, from 5.3% 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 75 78
Interest coverage x 7.6 6.2
Debt to equity ratio x 0.0 0.0
Return on assets % 5.3 7.1
Return on equity % 18.2 21.8
Return on capital employed % 27.1 31.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 up from Rs 566.2 to Rs 794.5, registering a gain of Rs 228.4 or around 40.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,551.1 (down 0.8%). Over the last one year it has moved up from 17,108.9 to 18,551.1, a gain of 1,442 points (up 8.4%).

Overall, the S&P BSE SENSEX is up 6.0% over the year.

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

Equitymaster requests your view! Post a comment on "BLUE STAR 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

BLUE STAR Announces Quarterly Results (4QFY20); Net Profit Down 89.2% (Quarterly Result Update)

May 14, 2020 | Updated on May 14, 2020

For the quarter ended March 2020, BLUE STAR has posted a net profit of Rs 84 m (down 89.2% YoY). Sales on the other hand came in at Rs 13 bn (down 18.6% YoY). Read on for a complete analysis of BLUE STAR's quarterly results.

BLUE STAR Announces Quarterly Results (3QFY20); Net Profit Up 48.5% (Quarterly Result Update)

Feb 1, 2020 | Updated on Feb 1, 2020

For the quarter ended December 2019, BLUE STAR has posted a net profit of Rs 195 m (up 48.5% YoY). Sales on the other hand came in at Rs 12 bn (up 12.5% YoY). Read on for a complete analysis of BLUE STAR's quarterly results.

More Views on News

Most Popular

How to Find the Best Stocks for Day Trading - 1(Fast Profits Daily)

Jul 2, 2020

In the first of two videos, I'll show you how to identify the best stocks for intraday trading.

Two Agri Stocks Are Likely to Outperform Even in this Market(Profit Hunter)

Jul 2, 2020

Why we have recommended two agriculture stocks for our Hidden Treasure subscribers. Read on...

A Warning for Traders: Don't Get Addicted to Hopium(Fast Profits Daily)

Jun 30, 2020

If you are a trader, you must watch out for this dangerous addiction.

Smallcaps Are in a Sweet Spot Again: Are You Buying?(Profit Hunter)

Jul 3, 2020

This is why I believe smallcaps are the place to be in the near future.

More

India's #1 Trader
Reveals His Secrets

The Secret to Increasing Your Trading Profits Today
Get this Special Report, The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

TRACK BLUE STAR

  • Track your investment in BLUE STAR with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

BLUE STAR - SANGHVI MOVERS COMPARISON

COMPARE BLUE STAR WITH

MARKET STATS