BLUE STAR 2020-21 Annual Report Analysis
Tue, 10 Aug

BLUE STAR 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.

BLUE STAR Income Statement Analysis

  • Operating income during the year fell 20.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 22.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.0% in FY21 as against 5.2% in FY20.
  • Depreciation charges increased by 4.9% and finance costs increased by 119.6% YoY, respectively.
  • Other income grew by 95.3% YoY.
  • Net profit for the year declined by 30.3% YoY.
  • Net profit margins during the year declined from 2.6% in FY20 to 2.3% in FY21.

BLUE STAR Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 53,602 42,636 -20.5%
Other income Rs m 447 874 95.3%
Total Revenues Rs m 54,049 43,509 -19.5%
Gross profit Rs m 2,787 2,148 -22.9%
Depreciation Rs m 880 923 4.9%
Interest Rs m 295 647 119.6%
Profit before tax Rs m 2,060 1,452 -29.5%
Tax Rs m 653 471 -27.9%
Profit after tax Rs m 1,407 981 -30.3%
Gross profit margin % 5.2 5.0
Effective tax rate % 31.7 32.4
Net profit margin % 2.6 2.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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BLUE STAR Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 23 billion as compared to Rs 25 billion in FY20, thereby witnessing an decrease of -11.2%.
  • Long-term debt stood at Rs 3 billion as compared to Rs 477 million during FY20, a growth of 632.0%.
  • Current assets rose 8% and stood at Rs 29 billion, while fixed assets fell 9% and stood at Rs 6 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 35 billion as against Rs 34 billion during FY20, thereby witnessing a growth of 4%.

BLUE STAR Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 7,824 8,852 13.1
 
Current Liabilities Rs m 25,457 22,614 -11.2
Long-term Debt Rs m 477 3,493 632.0
Total Liabilities Rs m 33,575 35,020 4.3
 
Current assets Rs m 26,512 28,596 7.9
Fixed Assets Rs m 7,063 6,424 -9.0
Total Assets Rs m 33,575 35,020 4.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BLUE STAR Cash Flow Statement Analysis

  • BLUE STAR's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 196.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -696 million, an improvement of 58% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 418 million from the Rs 2 billion net cash flows seen during FY20.

BLUE STAR 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 4,499 3,498 -22.3%
Cash Flow from Investing Activities Rs m -808 -2,396 -
Cash Flow from Financing Activities Rs m -1,669 -696 -
Net Cash Flow Rs m 2,023 418 -79.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BLUE STAR

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.2, an decline from the EPS of Rs 14.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 819.0, stands at 60.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.7 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 41.4 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 556.6 442.7
TTM Earnings per share Rs 14.6 10.2
Diluted earnings per share Rs 14.6 10.2
Price to Cash Flow x 34.5 41.4
TTM P/E ratio x 60.3 60.3
Price / Book Value ratio x 8.1 7.7
Market Cap Rs m 78,881 78,881
Dividends per share (Unadj.) Rs 10.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BLUE STAR

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 1.0x 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 3.2x during FY21, from 8.0x 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 11.1% during FY21, from 18.0% 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 17.0% during FY21, from 28.4% 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 4.6% during FY21, from 5.1% 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 1.0 1.3
Debtors’ Days Days 6 7
Interest coverage x 8.0 3.2
Debt to equity ratio x 0.1 0.4
Return on assets % 5.1 4.6
Return on equity % 18.0 11.1
Return on capital employed % 28.4 17.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

BLUE STAR Share Price Performance

Over the last one year, BLUE STAR share price has moved up from Rs 513.5 to Rs 819.0, registering a gain of Rs 305.6 or around 59.5%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 36,366.2 (down 0.2%). Over the last one year it has moved up from 22,192.9 to 36,366.2, a gain of 14,173 points (up 63.9%).

Overall, the S&P BSE SENSEX is up 43.5% over the year.

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