BHAGYANAGAR IND 2022-23 Annual Report Analysis

Wed, 27 Sep

BHAGYANAGAR IND 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.

BHAGYANAGAR IND Income Statement Analysis

• Operating income during the year rose 15.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.3% in FY23 as against 2.3% in FY22.
• Depreciation charges increased by 3.5% and finance costs increased by 28.7% YoY, respectively.
• Other income grew by 20.4% YoY.
• Net profit for the year declined by 8.6% YoY.
• Net profit margins during the year declined from 0.8% in FY22 to 0.7% in FY23.

BHAGYANAGAR IND Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	13,325	15,352	15.2%
Other income	Rs m	8	9	20.4%
Total Revenues	Rs m	13,333	15,361	15.2%
Gross profit	Rs m	302	347	14.9%
Depreciation	Rs m	57	59	3.5%
Interest	Rs m	118	152	28.7%
Profit before tax	Rs m	134	145	7.9%
Tax	Rs m	23	43	86.4%
Profit after tax	Rs m	111	101	-8.6%
Gross profit margin	%	2.3	2.3
Effective tax rate	%	17.4	30.0
Net profit margin	%	0.8	0.7

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BHAGYANAGAR IND Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 29.6%.
• Long-term debt stood at Rs 584 million as compared to Rs 473 million during FY22, a growth of 23.3%.
• Current assets rose 25% and stood at Rs 3 billion, while fixed assets rose 4% and stood at Rs 815 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 20%.

BHAGYANAGAR IND Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,375	1,476	7.4
Current Liabilities	Rs m	1,705	2,210	29.6
Long-term Debt	Rs m	473	584	23.3
Total Liabilities	Rs m	3,554	4,272	20.2
Current assets	Rs m	2,772	3,457	24.7
Fixed Assets	Rs m	781	815	4.3
Total Assets	Rs m	3,554	4,272	20.2

BHAGYANAGAR IND Cash Flow Statement Analysis

• BHAGYANAGAR IND's cash flow from operating activities (CFO) during FY23 stood at Rs -395 million, an improvement of 815.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 32 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 273 million, an improvement of 96% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -90 million from the Rs 88 million net cash flows seen during FY22.

BHAGYANAGAR IND 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	-43	-395	-
Cash Flow from Investing Activities	Rs m	-8	32	-
Cash Flow from Financing Activities	Rs m	140	273	95.6%
Net Cash Flow	Rs m	88	-90	-

Current Valuations for BHAGYANAGAR IND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.2, an decline from the EPS of Rs 3.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 69.3, stands at 4.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 9.1 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	416.4	479.7
TTM Earnings per share	Rs	3.5	3.2
Diluted earnings per share	Rs	3.5	3.2
Price to Cash Flow	x	8.5	9.1
TTM P/E ratio	x	15.2	4.7
Price / Book Value ratio	x	1.2	1.0
Market Cap	Rs m	1,645	1,457
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BHAGYANAGAR IND

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.6x 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 2.0x during FY23, from 2.1x 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 6.9% during FY23, from 8.1% 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 improved and stood at 14.4% during FY23, from 13.7% 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 5.9% during FY23, from 6.4% 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	1.6	1.6
Debtors’ Days	Days	268	287
Interest coverage	x	2.1	2.0
Debt to equity ratio	x	0.3	0.4
Return on assets	%	6.4	5.9
Return on equity	%	8.1	6.9
Return on capital employed	%	13.7	14.4

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 45.7 to Rs 69.3, registering a gain of Rs 23.6 or around 51.5%.

Overall, the S&P BSE SENSEX is up 15.7% over the year.

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