BOSCH 2019-20 Annual Report Analysis

Tue, 31 Mar

BOSCH 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.

BOSCH Income Statement Analysis

• Operating income during the year fell 19.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 64.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.7% in FY20 as against 17.6% in FY19.
• Depreciation charges decreased by 4.7% and finance costs decreased by 23.3% YoY, respectively.
• Other income declined by 8.2% YoY.
• Net profit for the year declined by 59.3% YoY.
• Net profit margins during the year declined from 13.0% in FY19 to 6.6% in FY20.

BOSCH Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	122,578	99,121	-19.1%
Other income	Rs m	5,954	5,466	-8.2%
Total Revenues	Rs m	128,532	104,587	-18.6%
Gross profit	Rs m	21,611	7,587	-64.9%
Depreciation	Rs m	4,022	3,833	-4.7%
Interest	Rs m	133	102	-23.3%
Profit before tax	Rs m	23,410	9,118	-61.1%
Tax	Rs m	7,430	2,620	-64.7%
Profit after tax	Rs m	15,980	6,498	-59.3%
Gross profit margin	%	17.6	7.7
Effective tax rate	%	31.7	28.7
Net profit margin	%	13.0	6.6

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BOSCH Balance Sheet Analysis

• The company's current liabilities during FY20 down at Rs 37 billion as compared to Rs 40 billion in FY19, thereby witnessing an decrease of -8.6%.
• Current assets fell 3% and stood at Rs 70 billion, while fixed assets rose 9% and stood at Rs 63 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 133 billion as against Rs 130 billion during FY19, thereby witnessing a growth of 2%.

BOSCH Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	91,178	92,607	1.6
Current Liabilities	Rs m	40,133	36,690	-8.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	130,238	133,159	2.2
Current assets	Rs m	72,254	70,193	-2.9
Fixed Assets	Rs m	57,984	62,966	8.6
Total Assets	Rs m	130,238	133,159	2.2

BOSCH Cash Flow Statement Analysis

• BOSCH's cash flow from operating activities (CFO) during FY20 stood at Rs 13 billion, an improvement of 125.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -9 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -4 billion, an improvement of 84% on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs 642 million from the Rs -2 billion net cash flows seen during FY19.

BOSCH 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	5,932	13,361	125.2%
Cash Flow from Investing Activities	Rs m	17,659	-8,729	-
Cash Flow from Financing Activities	Rs m	-25,308	-3,990	-
Net Cash Flow	Rs m	-1,717	642	-

Current Valuations for BOSCH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 220.3, an decline from the EPS of Rs 541.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 9,409.8, stands at 38.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 37.4 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	4,156.6	3,361.2
TTM Earnings per share	Rs	541.9	220.3
Diluted earnings per share	Rs	541.8	220.3
Price to Cash Flow	x	26.8	37.4
TTM P/E ratio	x	33.5	38.1
Price / Book Value ratio	x	6.4	4.2
Market Cap	Rs m	583,531	386,720
Dividends per share (Unadj.)	Rs	105.0	105.0

Ratio Analysis for BOSCH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY20, from 1.8x 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 90.4x during FY20, from 177.0x 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 7.0% during FY20, from 17.5% 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 10.0% during FY20, from 25.8% 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 5.0% during FY20, from 12.4% 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	1.8	1.9
Debtors’ Days	Days	47	52
Interest coverage	x	177.0	90.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.4	5.0
Return on equity	%	17.5	7.0
Return on capital employed	%	25.8	10.0

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

BOSCH Share Price Performance

Over the last one year, BOSCH share price has moved down from Rs 18,165.6 to Rs 9,409.8, registering a loss of Rs 8,755.8 or around 48.2%.

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

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

Read: Latest Annual Report Analysis of BOSCH