BCL INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

BCL INDUSTRIES has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

BCL INDUSTRIES Income Statement Analysis

• Operating income during the year rose 55.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 46.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.7% in FY21 as against 6.1% in FY20.
• Depreciation charges decreased by 5.5% and finance costs increased by 7.8% YoY, respectively.
• Other income declined by 33.0% YoY.
• Net profit for the year grew by 63.1% YoY.
• Net profit margins during the year grew from 2.8% in FY20 to 2.9% in FY21.

BCL INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	9,183	14,313	55.9%
Other income	Rs m	72	48	-33.0%
Total Revenues	Rs m	9,255	14,361	55.2%
Gross profit	Rs m	560	818	46.0%
Depreciation	Rs m	135	128	-5.5%
Interest	Rs m	148	160	7.8%
Profit before tax	Rs m	349	579	65.8%
Tax	Rs m	90	157	73.8%
Profit after tax	Rs m	258	422	63.1%
Gross profit margin	%	6.1	5.7
Effective tax rate	%	25.9	27.2
Net profit margin	%	2.8	2.9

BCL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an decrease of -11.5%.
• Long-term debt down at Rs 580 million as compared to Rs 652 million during FY20, a fall of 11.0%.
• Current assets rose 3% and stood at Rs 4 billion, while fixed assets rose 9% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 6 billion as against Rs 6 billion during FY20, thereby witnessing a growth of 5%.

BCL INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,175	2,847	30.9
Current Liabilities	Rs m	3,034	2,686	-11.5
Long-term Debt	Rs m	652	580	-11.0
Total Liabilities	Rs m	6,037	6,321	4.7
Current assets	Rs m	4,355	4,487	3.0
Fixed Assets	Rs m	1,682	1,834	9.0
Total Assets	Rs m	6,037	6,321	4.7

BCL INDUSTRIES Cash Flow Statement Analysis

• BCL INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 47 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -128 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 63 million, an improvement of 130% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -18 million from the Rs -55 million net cash flows seen during FY20.

BCL INDUSTRIES Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	287	47	-83.6%
Cash Flow from Investing Activities	Rs m	-132	-128	-
Cash Flow from Financing Activities	Rs m	-210	63	-
Net Cash Flow	Rs m	-55	-18	-

Current Valuations for BCL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.5, an improvement from the EPS of Rs 13.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 106.6, stands at 6.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 4.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	479.5	592.7
TTM Earnings per share	Rs	13.5	17.5
Diluted earnings per share	Rs	10.7	17.5
Price to Cash Flow	x	2.0	4.0
TTM P/E ratio	x	3.1	6.1
Price / Book Value ratio	x	0.6	0.8
Market Cap	Rs m	1,346	2,186
Dividends per share (Unadj.)	Rs	0.0	5.0

Ratio Analysis for BCL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.4x during FY20. 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 4.6x during FY21, from 3.4x during FY20. 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 14.8% during FY21, from 11.9% during FY21. 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 21.5% during FY21, from 17.6% during FY20. 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 9.2% during FY21, from 6.7% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.4	1.7
Debtors’ Days	Days	139	344
Interest coverage	x	3.4	4.6
Debt to equity ratio	x	0.3	0.2
Return on assets	%	6.7	9.2
Return on equity	%	11.9	14.8
Return on capital employed	%	17.6	21.5

To see how BCL INDUSTRIES has performed over the last 5 years, please visit here.

BCL INDUSTRIES Share Price Performance

Over the last one year, BCL INDUSTRIES share price has moved up from Rs 32.8 to Rs 106.6, registering a gain of Rs 73.9 or around 225.5%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for BCL INDUSTRIES and quarterly results for BCL INDUSTRIES)

Read: Latest Annual Report Analysis of BCL INDUSTRIES