BOSCH 2020-21 Annual Report Analysis

Wed, 31 Mar

BOSCH has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

BOSCH Income Statement Analysis

• Operating income during the year fell 2.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 51.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.8% in FY21 as against 7.7% in FY20.
• Depreciation charges decreased by 10.9% and finance costs increased by 37.3% YoY, respectively.
• Other income grew by 1.1% YoY.
• Net profit for the year declined by 26.0% YoY.
• Net profit margins during the year declined from 6.6% in FY20 to 4.9% in FY21.

BOSCH Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	99,121	97,162	-2.0%
Other income	Rs m	5,466	5,524	1.1%
Total Revenues	Rs m	104,587	102,686	-1.8%
Gross profit	Rs m	7,587	3,683	-51.5%
Depreciation	Rs m	3,833	3,414	-10.9%
Interest	Rs m	102	140	37.3%
Profit before tax	Rs m	9,118	5,653	-38.0%
Tax	Rs m	2,620	846	-67.7%
Profit after tax	Rs m	6,498	4,807	-26.0%
Gross profit margin	%	7.7	3.8
Effective tax rate	%	28.7	15.0
Net profit margin	%	6.6	4.9

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BOSCH Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 45 billion as compared to Rs 37 billion in FY20, thereby witnessing an increase of 22.4%.
• Current assets rose 25% and stood at Rs 88 billion, while fixed assets fell 8% and stood at Rs 58 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 145 billion as against Rs 133 billion during FY20, thereby witnessing a growth of 9%.

BOSCH Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	92,607	98,129	6.0
Current Liabilities	Rs m	36,690	44,919	22.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	133,159	145,279	9.1
Current assets	Rs m	70,193	87,605	24.8
Fixed Assets	Rs m	62,966	57,674	-8.4
Total Assets	Rs m	133,159	145,279	9.1

BOSCH Cash Flow Statement Analysis

• BOSCH's cash flow from operating activities (CFO) during FY21 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion, an improvement of 15% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 337 million from the Rs 642 million net cash flows seen during FY20.

BOSCH Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	13,361	7,154	-46.5%
Cash Flow from Investing Activities	Rs m	-8,729	-3,435	-
Cash Flow from Financing Activities	Rs m	-3,990	-3,382	-
Net Cash Flow	Rs m	642	337	-47.5%

Current Valuations for BOSCH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 163.0, an decline from the EPS of Rs 220.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 14,080.5, stands at 86.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 4.3 times.
• The company's price to cash flow (P/CF) ratio stood at 46.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	3,361.2	3,294.7
TTM Earnings per share	Rs	220.3	163.0
Diluted earnings per share	Rs	220.3	163.0
Price to Cash Flow	x	26.9	46.0
TTM P/E ratio	x	38.1	86.4
Price / Book Value ratio	x	4.2	3.9
Market Cap	Rs m	386,720	377,887
Dividends per share (Unadj.)	Rs	105.0	115.0

Ratio Analysis for BOSCH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY21, from 1.9x during FY20. 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 41.4x during FY21, from 90.4x during FY20. 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 4.9% during FY21, from 7.0% during FY21. 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 5.9% during FY21, from 10.0% during FY20. 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 3.4% during FY21, from 5.0% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.9	2.0
Debtors’ Days	Days	52	52
Interest coverage	x	90.4	41.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.0	3.4
Return on equity	%	7.0	4.9
Return on capital employed	%	10.0	5.9

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 up from Rs 9,409.8 to Rs 14,080.5, registering a gain of Rs 4,670.7 or around 49.6%.

Overall, the S&P BSE SENSEX is up 74.1% 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