BLUE STAR 2021-22 Annual Report Analysis

Tue, 12 Jul

BLUE STAR 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.

BLUE STAR Income Statement Analysis

• Operating income during the year rose 41.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.3% in FY22 as against 5.6% in FY21.
• Depreciation charges decreased by 6.8% and finance costs decreased by 28.3% YoY, respectively.
• Other income declined by 2.6% YoY.
• Net profit for the year grew by 70.2% YoY.
• Net profit margins during the year grew from 2.3% in FY21 to 2.8% in FY22.

BLUE STAR Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	42,636	60,456	41.8%
Other income	Rs m	624	607	-2.6%
Total Revenues	Rs m	43,259	61,063	41.2%
Gross profit	Rs m	2,398	3,215	34.1%
Depreciation	Rs m	923	860	-6.8%
Interest	Rs m	647	464	-28.3%
Profit before tax	Rs m	1,452	2,498	72.1%
Tax	Rs m	471	829	76.0%
Profit after tax	Rs m	981	1,669	70.2%
Gross profit margin	%	5.6	5.3
Effective tax rate	%	32.4	33.2
Net profit margin	%	2.3	2.8

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BLUE STAR Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 30 billion as compared to Rs 23 billion in FY21, thereby witnessing an increase of 31.3%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY21, a fall of 30.8%.
• Current assets rose 22% and stood at Rs 35 billion, while fixed assets rose 25% and stood at Rs 8 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 43 billion as against Rs 35 billion during FY21, thereby witnessing a growth of 22%.

BLUE STAR Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	8,852	10,176	15.0
Current Liabilities	Rs m	22,614	29,692	31.3
Long-term Debt	Rs m	3,493	2,416	-30.8
Total Liabilities	Rs m	35,019	42,851	22.4
Current assets	Rs m	28,595	34,834	21.8
Fixed Assets	Rs m	6,424	8,016	24.8
Total Assets	Rs m	35,019	42,851	22.4

BLUE STAR Cash Flow Statement Analysis

• BLUE STAR's cash flow from operating activities (CFO) during FY22 stood at Rs 918 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -690 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -868 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -623 million from the Rs 418 million net cash flows seen during FY21.

BLUE STAR 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	3,498	918	-73.8%
Cash Flow from Investing Activities	Rs m	-2,396	-690	-
Cash Flow from Financing Activities	Rs m	-696	-868	-
Net Cash Flow	Rs m	418	-623	-

Current Valuations for BLUE STAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.3, an improvement from the EPS of Rs 10.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 938.8, stands at 54.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.9 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 35.7 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	442.7	627.7
TTM Earnings per share	Rs	10.2	17.3
Diluted earnings per share	Rs	10.2	17.3
Price to Cash Flow	x	47.4	35.7
TTM P/E ratio	x	92.1	54.2
Price / Book Value ratio	x	7.7	8.9
Market Cap	Rs m	67,815	90,292
Dividends per share (Unadj.)	Rs	4.0	10.0

Ratio Analysis for BLUE STAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY22, from 1.3x 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 6.4x during FY22, from 3.2x 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 16.4% during FY22, from 11.1% 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 23.5% during FY22, from 17.0% 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 5.0% during FY22, from 4.6% 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	1.3	1.2
Debtors’ Days	Days	7	7
Interest coverage	x	3.2	6.4
Debt to equity ratio	x	0.4	0.2
Return on assets	%	4.6	5.0
Return on equity	%	11.1	16.4
Return on capital employed	%	17.0	23.5

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 861.7 to Rs 938.8, registering a gain of Rs 77.1 or around 8.9%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 37,236.5 (down 0.6%). Over the last one year it has moved up from 35,837.8 to 37,236.5, a gain of 1,399 points (up 3.9%).

Overall, the S&P BSE SENSEX is up 2.5% over the year.

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

Read: Latest Annual Report Analysis of BLUE STAR