BHAGERIA INDUSTRIES 2023-24 Annual Report Analysis

Tue, 13 Aug

BHAGERIA INDUSTRIES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

BHAGERIA INDUSTRIES Income Statement Analysis

• Operating income during the year fell 1.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 18.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.7% in FY24 as against 10.4% in FY23.
• Depreciation charges decreased by 7.9% and finance costs decreased by 47.4% YoY, respectively.
• Other income grew by 184.2% YoY.
• Net profit for the year grew by 26.0% YoY.
• Net profit margins during the year grew from 2.9% in FY23 to 3.7% in FY24.

BHAGERIA INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,015	4,943	-1.4%
Other income	Rs m	59	169	184.2%
Total Revenues	Rs m	5,074	5,112	0.7%
Gross profit	Rs m	524	430	-18.0%
Depreciation	Rs m	344	317	-7.9%
Interest	Rs m	35	19	-47.4%
Profit before tax	Rs m	204	263	28.9%
Tax	Rs m	57	77	36.7%
Profit after tax	Rs m	147	185	26.0%
Gross profit margin	%	10.4	8.7
Effective tax rate	%	27.8	29.5
Net profit margin	%	2.9	3.7

Don't Miss: Key Information for Long-term Investors

BHAGERIA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 912 million in FY23, thereby witnessing an increase of 30.5%.
• Long-term debt stood at Rs 27 million as compared to Rs 13 million during FY23, a growth of 110.6%.
• Current assets rose 28% and stood at Rs 3 billion, while fixed assets fell 6% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 7%.

BHAGERIA INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,061	5,224	3.2
Current Liabilities	Rs m	912	1,190	30.5
Long-term Debt	Rs m	13	27	110.6
Total Liabilities	Rs m	6,389	6,833	7.0
Current assets	Rs m	2,447	3,126	27.8
Fixed Assets	Rs m	3,942	3,707	-6.0
Total Assets	Rs m	6,389	6,833	7.0

BHAGERIA INDUSTRIES Cash Flow Statement Analysis

• BHAGERIA INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 229 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -331 million, an improvement of 43.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 48 million, an improvement of 131% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -53 million from the Rs -111 million net cash flows seen during FY23.

BHAGERIA INDUSTRIES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	276	229	-17.0%
Cash Flow from Investing Activities	Rs m	-231	-331	-
Cash Flow from Financing Activities	Rs m	-156	48	-
Net Cash Flow	Rs m	-111	-53	-

Current Valuations for BHAGERIA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.2, an improvement from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 176.2, stands at 33.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 14.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	114.9	113.3
TTM Earnings per share	Rs	3.4	4.2
Diluted earnings per share	Rs	3.4	4.2
Price to Cash Flow	x	10.4	14.0
TTM P/E ratio	x	34.8	33.3
Price / Book Value ratio	x	1.7	1.3
Market Cap	Rs m	8,424	7,032
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for BHAGERIA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY24, from 2.7x during FY23. 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 improved and stood at 15.2x during FY24, from 6.8x during FY23. 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 improved and stood at 3.5% during FY24, from 2.9% during FY24. 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 improved and stood at 5.4% during FY24, from 4.7% during FY23. 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 improved and stood at 3.0% during FY24, from 2.9% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.7	2.6
Debtors’ Days	Days	928	1,154
Interest coverage	x	6.8	15.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.9	3.0
Return on equity	%	2.9	3.5
Return on capital employed	%	4.7	5.4

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

BHAGERIA INDUSTRIES Share Price Performance

Over the last one year, BHAGERIA INDUSTRIES share price has moved up from Rs 149.5 to Rs 176.2, registering a gain of Rs 26.7 or around 17.8%.

Overall, the S&P BSE SENSEX is up 19.6% over the year.

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