BOSCH 2020-21 Annual Report Analysis
Tue, 10 Aug

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 6.2% in FY20 to 4.7% 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 % 6.2 4.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 14,472.9, stands at 49.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 3.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 51.9 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 41.3 51.9
TTM P/E ratio x 49.6 49.6
Price / Book Value ratio x 4.2 3.9
Market Cap Rs m 426,858 426,858
Dividends per share (Unadj.) Rs 105.0 115.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 13,591.4 to Rs 14,472.9, registering a gain of Rs 881.6 or around 6.5%.

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

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