BALRAMPUR CHINI 2019-20 Annual Report Analysis

Tue, 31 Mar

BALRAMPUR CHINI has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

BALRAMPUR CHINI Income Statement Analysis

• Operating income during the year rose 10.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.4% in FY20 as against 16.1% in FY19.
• Depreciation charges increased by 5.8% and finance costs increased by 56.8% YoY, respectively.
• Other income grew by 2.6% YoY.
• Net profit for the year declined by 10.1% YoY.
• Net profit margins during the year declined from 13.3% in FY19 to 10.8% in FY20.

BALRAMPUR CHINI Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	42,858	47,413	10.6%
Other income	Rs m	427	439	2.6%
Total Revenues	Rs m	43,285	47,852	10.5%
Gross profit	Rs m	6,891	6,820	-1.0%
Depreciation	Rs m	959	1,014	5.8%
Interest	Rs m	409	642	56.8%
Profit before tax	Rs m	5,950	5,603	-5.8%
Tax	Rs m	260	487	87.6%
Profit after tax	Rs m	5,691	5,115	-10.1%
Gross profit margin	%	16.1	14.4
Effective tax rate	%	4.4	8.7
Net profit margin	%	13.3	10.8

BALRAMPUR CHINI Balance Sheet Analysis

• The company's current liabilities during FY20 down at Rs 20 billion as compared to Rs 22 billion in FY19, thereby witnessing an decrease of -8.8%.
• Long-term debt stood at Rs 3 billion as compared to Rs 3 billion during FY19, a growth of 21.9%.
• Current assets fell 2% and stood at Rs 29 billion, while fixed assets rose 13% and stood at Rs 24 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 53 billion as against Rs 51 billion during FY19, thereby witnessing a growth of 4%.

BALRAMPUR CHINI Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	21,178	24,157	14.1
Current Liabilities	Rs m	21,845	19,917	-8.8
Long-term Debt	Rs m	2,792	3,403	21.9
Total Liabilities	Rs m	50,789	52,787	3.9
Current assets	Rs m	29,830	29,164	-2.2
Fixed Assets	Rs m	20,958	23,623	12.7
Total Assets	Rs m	50,789	52,787	3.9

BALRAMPUR CHINI Cash Flow Statement Analysis

• BALRAMPUR CHINI's cash flow from operating activities (CFO) during FY20 stood at Rs 8 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -3 billion, an improvement of 91.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs -6 million from the Rs -3 million net cash flows seen during FY19.

BALRAMPUR CHINI Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-19	Mar-20
Cash Flow from Operating Activities	Rs m	-5,230	8,496	-
Cash Flow from Investing Activities	Rs m	-1,592	-3,047	-
Cash Flow from Financing Activities	Rs m	6,819	-5,455	-
Net Cash Flow	Rs m	-3	-6	-

Current Valuations for BALRAMPUR CHINI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.3, an decline from the EPS of Rs 24.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 104.0, stands at 4.1 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 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 4.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Sales per share (Unadj.)	Rs	187.6	215.5
TTM Earnings per share	Rs	24.9	23.3
Diluted earnings per share	Rs	27.9	25.1
Price to Cash Flow	x	4.2	4.7
TTM P/E ratio	x	4.9	4.1
Price / Book Value ratio	x	1.1	1.2
Market Cap	Rs m	23,164	29,018
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for BALRAMPUR CHINI

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY20, from 1.4x during FY19. 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 9.7x during FY20, from 15.5x during FY19. 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 21.2% during FY20, from 26.9% during FY20. 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 22.7% during FY20, from 26.5% during FY19. 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 10.9% during FY20, from 12.0% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Current ratio	x	1.4	1.5
Debtors’ Days	Days	383	184
Interest coverage	x	15.5	9.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	12.0	10.9
Return on equity	%	26.9	21.2
Return on capital employed	%	26.5	22.7

To see how BALRAMPUR CHINI has performed over the last 5 years, please visit here.

BALRAMPUR CHINI Share Price Performance

Over the last one year, BALRAMPUR CHINI share price has moved down from Rs 136.6 to Rs 104.0, registering a loss of Rs 32.7 or around 23.9%.

Overall, the S&P BSE SENSEX is down 24.2% over the year.

(To know more, check out historical annual results for BALRAMPUR CHINI and quarterly results for BALRAMPUR CHINI)

Read: Latest Annual Report Analysis of BALRAMPUR CHINI