BCL INDUSTRIES 2022-23 Annual Report Analysis

Wed, 29 Nov

BCL INDUSTRIES 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.

BCL INDUSTRIES Income Statement Analysis

• Operating income during the year fell 8.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 10.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.8% in FY23 as against 6.9% in FY22.
• Depreciation charges increased by 70.0% and finance costs increased by 12.3% YoY, respectively.
• Other income declined by 17.3% YoY.
• Net profit for the year declined by 24.1% YoY.
• Net profit margins during the year declined from 4.3% in FY22 to 3.5% in FY23.

BCL INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	19,931	18,199	-8.7%
Other income	Rs m	81	67	-17.3%
Total Revenues	Rs m	20,012	18,266	-8.7%
Gross profit	Rs m	1,376	1,236	-10.2%
Depreciation	Rs m	147	250	70.0%
Interest	Rs m	177	198	12.3%
Profit before tax	Rs m	1,134	855	-24.6%
Tax	Rs m	286	211	-26.1%
Profit after tax	Rs m	848	644	-24.1%
Gross profit margin	%	6.9	6.8
Effective tax rate	%	25.2	24.7
Net profit margin	%	4.3	3.5

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BCL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 39.8%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY22, a growth of 120.3%.
• Current assets rose 34% and stood at Rs 5 billion, while fixed assets rose 55% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 8 billion during FY22, thereby witnessing a growth of 45%.

BCL INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,667	4,313	17.6
Current Liabilities	Rs m	2,585	3,613	39.8
Long-term Debt	Rs m	1,040	2,290	120.3
Total Liabilities	Rs m	7,575	10,955	44.6
Current assets	Rs m	3,844	5,154	34.1
Fixed Assets	Rs m	3,732	5,801	55.5
Total Assets	Rs m	7,575	10,955	44.6

BCL INDUSTRIES Cash Flow Statement Analysis

• BCL INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 346 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 76.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 231% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -162 million from the Rs 118 million net cash flows seen during FY22.

BCL INDUSTRIES 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	951	346	-63.6%
Cash Flow from Investing Activities	Rs m	-1,453	-2,565	-
Cash Flow from Financing Activities	Rs m	621	2,057	231.3%
Net Cash Flow	Rs m	118	-162	-

Current Valuations for BCL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.6, an decline from the EPS of Rs 35.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 55.7, stands at 16.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 10.7 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	825.3	753.6
TTM Earnings per share	Rs	35.1	26.6
Diluted earnings per share	Rs	3.3	2.5
Price to Cash Flow	x	114.5	10.7
TTM P/E ratio	x	134.4	16.4
Price / Book Value ratio	x	2.1	2.2
Market Cap	Rs m	7,531	9,570
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for BCL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 1.5x 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 deteriorated and stood at 5.3x during FY23, from 7.4x 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 declined and down at 14.9% during FY23, from 23.1% 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 declined and down at 15.9% during FY23, from 27.8% 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 declined and down at 7.7% during FY23, from 13.5% 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	1.5	1.4
Debtors’ Days	Days	186	187
Interest coverage	x	7.4	5.3
Debt to equity ratio	x	0.3	0.5
Return on assets	%	13.5	7.7
Return on equity	%	23.1	14.9
Return on capital employed	%	27.8	15.9

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 down from Rs 381.3 to Rs 55.7, registering a loss of Rs 325.6 or around 85.4%.

Overall, the S&P BSE SENSEX is up 6.9% over the year.

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