BHAGYANAGAR IND 2017-18 Annual Report Analysis

Sat, 31 Mar

BHAGYANAGAR IND has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

BHAGYANAGAR IND Income Statement Analysis

• Operating income during the year rose 79.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.5% in FY18 as against 3.2% in FY17.
• Depreciation charges decreased by 20.4% and finance costs decreased by 38.1% YoY, respectively.
• Other income grew by 65.4% YoY.
• Net profit for the year grew by 137.4% YoY.
• Net profit margins during the year grew from 1.9% in FY17 to 2.5% in FY18.

BHAGYANAGAR IND Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	2,810	5,031	79.0%
Other income	Rs m	70	115	65.4%
Total Revenues	Rs m	2,880	5,147	78.7%
Gross profit	Rs m	90	126	40.1%
Depreciation	Rs m	47	37	-20.4%
Interest	Rs m	62	38	-38.1%
Profit before tax	Rs m	52	166	221.9%
Tax	Rs m	-2	39	-2,175.1%
Profit after tax	Rs m	54	127	137.4%
Gross profit margin	%	3.2	2.5
Effective tax rate	%	-3.7	23.6
Net profit margin	%	1.9	2.5

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BHAGYANAGAR IND Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 394 million as compared to Rs 611 million in FY17, thereby witnessing an decrease of -35.6%.
• Long-term debt down at Rs 160 million as compared to Rs 289 million during FY17, a fall of 44.6%.
• Current assets fell 10% and stood at Rs 1 billion, while fixed assets fell 12% and stood at Rs 643 million in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 2 billion as against Rs 2 billion during FY17, thereby witnessing a fall of 11%.

BHAGYANAGAR IND Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	1,036	1,156	11.6
Current Liabilities	Rs m	611	394	-35.6
Long-term Debt	Rs m	289	160	-44.6
Total Liabilities	Rs m	1,905	1,695	-11.0
Current assets	Rs m	1,170	1,052	-10.1
Fixed Assets	Rs m	734	643	-12.5
Total Assets	Rs m	1,905	1,695	-11.0

BHAGYANAGAR IND Cash Flow Statement Analysis

• BHAGYANAGAR IND's cash flow from operating activities (CFO) during FY18 stood at Rs 279 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 315 million, an improvement of 12.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -488 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 105 million from the Rs 4 million net cash flows seen during FY17.

BHAGYANAGAR IND Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	-144	279	-
Cash Flow from Investing Activities	Rs m	279	315	12.7%
Cash Flow from Financing Activities	Rs m	-131	-488	-
Net Cash Flow	Rs m	4	105	2,353.8%

Current Valuations for BHAGYANAGAR IND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.0, an improvement from the EPS of Rs 1.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 42.1, stands at 10.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 7.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	87.8	157.2
TTM Earnings per share	Rs	1.7	4.0
Diluted earnings per share	Rs	1.7	4.0
Price to Cash Flow	x	7.8	7.8
TTM P/E ratio	x	14.2	10.5
Price / Book Value ratio	x	0.7	1.1
Market Cap	Rs m	673	1,285
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BHAGYANAGAR IND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY18, from 1.9x during FY17. 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 5.4x during FY18, from 1.8x during FY17. 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 11.0% during FY18, from 5.2% during FY18. 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 15.5% during FY18, from 8.6% during FY17. 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 9.7% during FY18, from 6.0% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.9	2.7
Debtors’ Days	Days	47,332,339	25,092,068
Interest coverage	x	1.8	5.4
Debt to equity ratio	x	0.3	0.1
Return on assets	%	6.0	9.7
Return on equity	%	5.2	11.0
Return on capital employed	%	8.6	15.5

To see how BHAGYANAGAR IND has performed over the last 5 years, please visit here.

BHAGYANAGAR IND Share Price Performance

Over the last one year, BHAGYANAGAR IND share price has moved up from Rs 0.0 to Rs 42.1, registering a gain of Rs 42.1 or around 0.0%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for BHAGYANAGAR IND and quarterly results for BHAGYANAGAR IND)

Read: Latest Annual Report Analysis of BHAGYANAGAR IND