BALRAMPUR CHINI 2022-23 Annual Report Analysis

Tue, 1 Aug

BALRAMPUR CHINI 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.

BALRAMPUR CHINI Income Statement Analysis

• Operating income during the year fell 3.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 26.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.2% in FY23 as against 14.7% in FY22.
• Depreciation charges increased by 13.7% and finance costs increased by 57.6% YoY, respectively.
• Other income grew by 90.2% YoY.
• Net profit for the year declined by 38.8% YoY.
• Net profit margins during the year declined from 9.6% in FY22 to 6.1% in FY23.

BALRAMPUR CHINI Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	48,460	46,659	-3.7%
Other income	Rs m	330	628	90.2%
Total Revenues	Rs m	48,790	47,287	-3.1%
Gross profit	Rs m	7,104	5,237	-26.3%
Depreciation	Rs m	1,139	1,295	13.7%
Interest	Rs m	309	486	57.6%
Profit before tax	Rs m	5,987	4,083	-31.8%
Tax	Rs m	1,341	1,241	-7.4%
Profit after tax	Rs m	4,646	2,842	-38.8%
Gross profit margin	%	14.7	11.2
Effective tax rate	%	22.4	30.4
Net profit margin	%	9.6	6.1

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BALRAMPUR CHINI Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 20 billion as compared to Rs 15 billion in FY22, thereby witnessing an increase of 31.9%.
• Long-term debt stood at Rs 4 billion as compared to Rs 1 billion during FY22, a growth of 197.3%.
• Current assets rose 8% and stood at Rs 26 billion, while fixed assets rose 30% and stood at Rs 35 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 61 billion as against Rs 51 billion during FY22, thereby witnessing a growth of 20%.

BALRAMPUR CHINI Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	27,697	28,956	4.5
Current Liabilities	Rs m	14,898	19,644	31.9
Long-term Debt	Rs m	1,442	4,288	197.3
Total Liabilities	Rs m	50,514	60,570	19.9
Current assets	Rs m	23,765	25,777	8.5
Fixed Assets	Rs m	26,748	34,793	30.1
Total Assets	Rs m	50,514	60,570	19.9

BALRAMPUR CHINI Cash Flow Statement Analysis

• BALRAMPUR CHINI's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -9 billion, an improvement of 177.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 4 billion, an improvement of 205% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs -1 million net cash flows seen during FY22.

BALRAMPUR CHINI 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	6,947	4,529	-34.8%
Cash Flow from Investing Activities	Rs m	-3,094	-8,588	-
Cash Flow from Financing Activities	Rs m	-3,854	4,058	-
Net Cash Flow	Rs m	-1	0	-

Current Valuations for BALRAMPUR CHINI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.1, an decline from the EPS of Rs 22.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 405.0, stands at 30.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 20.3 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	237.5	231.3
TTM Earnings per share	Rs	22.8	14.1
Diluted earnings per share	Rs	23.0	14.1
Price to Cash Flow	x	17.1	20.3
TTM P/E ratio	x	21.8	30.0
Price / Book Value ratio	x	2.6	2.9
Market Cap	Rs m	73,368	83,978
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for BALRAMPUR CHINI

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x 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 9.4x during FY23, from 20.4x 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 9.8% during FY23, from 16.8% 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 13.7% during FY23, from 21.6% 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 5.5% during FY23, from 9.8% 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	1.3
Debtors’ Days	Days	103	98
Interest coverage	x	20.4	9.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.8	5.5
Return on equity	%	16.8	9.8
Return on capital employed	%	21.6	13.7

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 up from Rs 393.1 to Rs 405.0, registering a gain of Rs 12.0 or around 3.0%.

Overall, the S&P BSE SENSEX is up 17.2% over the year.

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