BHAGWATI OXYGEN 2021-22 Annual Report Analysis

Mon, 19 Sep

BHAGWATI OXYGEN 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.

BHAGWATI OXYGEN Income Statement Analysis

• Operating income during the year rose 170.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 103.5% in FY22 as against 333.1% in FY21.
• Depreciation charges decreased by 2.9% and finance costs increased by 24.9% YoY, respectively.
• Other income grew by 26.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 783.8% in FY21 to 263.2% in FY22.

BHAGWATI OXYGEN Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	4	11	170.5%
Other income	Rs m	5	6	26.9%
Total Revenues	Rs m	9	17	92.4%
Gross profit	Rs m	-13	-11	NA
Depreciation	Rs m	18	18	-2.9%
Interest	Rs m	6	7	24.9%
Profit before tax	Rs m	-33	-30	NA
Tax	Rs m	-2	-2	NA
Profit after tax	Rs m	-31	-28	NA
Gross profit margin	%	-333.1	-103.5
Effective tax rate	%	4.6	6.1
Net profit margin	%	-783.8	-263.2

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BHAGWATI OXYGEN Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 33 million as compared to Rs 23 million in FY21, thereby witnessing an increase of 42.0%.
• Long-term debt down at Rs 54 million as compared to Rs 54 million during FY21, a fall of 1.3%.
• Current assets fell 0% and stood at Rs 58 million, while fixed assets fell 17% and stood at Rs 99 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 157 million as against Rs 177 million during FY21, thereby witnessing a fall of 11%.

BHAGWATI OXYGEN Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	92	67	-27.7
Current Liabilities	Rs m	23	33	42.0
Long-term Debt	Rs m	54	54	-1.3
Total Liabilities	Rs m	177	157	-11.4
Current assets	Rs m	58	58	-0.2
Fixed Assets	Rs m	119	99	-16.9
Total Assets	Rs m	177	157	-11.4

BHAGWATI OXYGEN Cash Flow Statement Analysis

• BHAGWATI OXYGEN's cash flow from operating activities (CFO) during FY22 stood at Rs -4 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 6 million, an improvement of 804.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 0 million from the Rs 0 million net cash flows seen during FY21.

BHAGWATI OXYGEN 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	-7	-4	-
Cash Flow from Investing Activities	Rs m	1	6	804.5%
Cash Flow from Financing Activities	Rs m	7	-2	-
Net Cash Flow	Rs m	0	0	-1,100.0%

Current Valuations for BHAGWATI OXYGEN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -12.2, an improvement from the EPS of Rs -13.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 40.8, stands at -3.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 8.8 times.
• The company's price to cash flow (P/CF) ratio stood at -13.2 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	1.7	4.6
TTM Earnings per share	Rs	-13.4	-12.2
Diluted earnings per share	Rs	-13.4	-12.2
Price to Cash Flow	x	-2.4	-13.2
TTM P/E ratio	x	-1.0	-3.3
Price / Book Value ratio	x	0.4	2.0
Market Cap	Rs m	35	135
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BHAGWATI OXYGEN

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY22, from 2.5x 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 -3.2x during FY22, from -4.7x 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 declined and down at -42.3% during FY22, from -33.7% 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 declined and down at -19.1% during FY22, from -18.4% 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 -13.4% during FY22, from -14.3% 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	2.5	1.7
Debtors’ Days	Days	2,277,707,472	974,146,796
Interest coverage	x	-4.7	-3.2
Debt to equity ratio	x	0.6	0.8
Return on assets	%	-14.3	-13.4
Return on equity	%	-33.7	-42.3
Return on capital employed	%	-18.4	-19.1

To see how BHAGWATI OXYGEN has performed over the last 5 years, please visit here.

BHAGWATI OXYGEN Share Price Performance

Over the last one year, BHAGWATI OXYGEN share price has moved down from Rs 42.3 to Rs 40.8, registering a loss of Rs 1.5 or around 3.4%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 19,476.5 (up 0.1%). Over the last one year it has moved up from 17,617.1 to 19,476.5, a gain of 1,859 points (up 10.6%).

Overall, the S&P BSE SENSEX is up 0.6% over the year.

(To know more, check out historical annual results for BHAGWATI OXYGEN and quarterly results for BHAGWATI OXYGEN)