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BHARAT DYNAMICS 2022-23 Annual Report Analysis

Thu, 14 Sep

BHARAT DYNAMICS 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.

BHARAT DYNAMICS Income Statement Analysis

• Operating income during the year fell 11.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 41.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.4% in FY23 as against 24.6% in FY22.
• Depreciation charges decreased by 14.5% and finance costs increased by 16.9% YoY, respectively.
• Other income grew by 39.7% YoY.
• Net profit for the year declined by 29.6% YoY.
• Net profit margins during the year declined from 17.7% in FY22 to 14.1% in FY23.

BHARAT DYNAMICS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	28,174	24,894	-11.6%
Other income	Rs m	1,112	1,554	39.7%
Total Revenues	Rs m	29,286	26,448	-9.7%
Gross profit	Rs m	6,938	4,092	-41.0%
Depreciation	Rs m	904	773	-14.5%
Interest	Rs m	47	56	16.9%
Profit before tax	Rs m	7,099	4,818	-32.1%
Tax	Rs m	2,100	1,296	-38.3%
Profit after tax	Rs m	4,999	3,522	-29.6%
Gross profit margin	%	24.6	16.4
Effective tax rate	%	29.6	26.9
Net profit margin	%	17.7	14.1

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BHARAT DYNAMICS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 22 billion as compared to Rs 26 billion in FY22, thereby witnessing an decrease of -14.5%.
• Current assets rose 38% and stood at Rs 76 billion, while fixed assets rose 3% and stood at Rs 10 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 86 billion as against Rs 65 billion during FY22, thereby witnessing a growth of 32%.

BHARAT DYNAMICS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	30,306	32,115	6.0
Current Liabilities	Rs m	25,811	22,060	-14.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	65,068	86,160	32.4
Current assets	Rs m	55,232	76,001	37.6
Fixed Assets	Rs m	9,641	9,978	3.5
Total Assets	Rs m	65,068	86,160	32.4

BHARAT DYNAMICS Cash Flow Statement Analysis

• BHARAT DYNAMICS's cash flow from operating activities (CFO) during FY23 stood at Rs 21 billion, an improvement of 302.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -12 billion, an improvement of 104.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 8 billion from the Rs -2 billion net cash flows seen during FY22.

BHARAT DYNAMICS 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	5,297	21,303	302.2%
Cash Flow from Investing Activities	Rs m	-5,730	-11,710	-
Cash Flow from Financing Activities	Rs m	-1,485	-1,714	-
Net Cash Flow	Rs m	-1,919	7,878	-

Current Valuations for BHARAT DYNAMICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.2, an decline from the EPS of Rs 27.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,070.9, stands at 55.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.1 times, while the price to sales ratio stands at 7.9 times.
• The company's price to cash flow (P/CF) ratio stood at 33.5 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	153.7	135.8
TTM Earnings per share	Rs	27.3	19.2
Diluted earnings per share	Rs	27.3	19.2
Price to Cash Flow	x	17.0	33.5
TTM P/E ratio	x	20.0	55.4
Price / Book Value ratio	x	2.8	4.5
Market Cap	Rs m	85,496	144,073
Dividends per share (Unadj.)	Rs	8.3	9.4

Ratio Analysis for BHARAT DYNAMICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.4x during FY23, from 2.1x 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 87.8x during FY23, from 150.5x 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 11.0% during FY23, from 16.5% 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 15.2% during FY23, from 23.6% 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 4.2% during FY23, from 7.8% 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	2.1	3.4
Debtors’ Days	Days	394	271
Interest coverage	x	150.5	87.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.8	4.2
Return on equity	%	16.5	11.0
Return on capital employed	%	23.6	15.2

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

BHARAT DYNAMICS Share Price Performance

Over the last one year, BHARAT DYNAMICS share price has moved up from Rs 864.5 to Rs 1,070.9, registering a gain of Rs 206.4 or around 23.9%.

Overall, the S&P BSE SENSEX is up 12.3% over the year.

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