BAG FILMS 2022-23 Annual Report Analysis

Wed, 18 Oct

BAG FILMS 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.

BAG FILMS Income Statement Analysis

• Operating income during the year fell 7.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 37.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.4% in FY23 as against 16.7% in FY22.
• Depreciation charges decreased by 14.8% and finance costs decreased by 10.1% YoY, respectively.
• Other income declined by 60.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 4.1% in FY22 to 1.3% in FY23.

BAG FILMS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,208	1,117	-7.5%
Other income	Rs m	15	6	-60.3%
Total Revenues	Rs m	1,223	1,123	-8.2%
Gross profit	Rs m	202	127	-37.0%
Depreciation	Rs m	61	52	-14.8%
Interest	Rs m	104	93	-10.1%
Profit before tax	Rs m	52	-13	NA
Tax	Rs m	2	2	9.6%
Profit after tax	Rs m	50	-15	NA
Gross profit margin	%	16.7	11.4
Effective tax rate	%	4.0	-18.1
Net profit margin	%	4.1	-1.3

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BAG FILMS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 3.4%.
• Long-term debt down at Rs 407 million as compared to Rs 421 million during FY22, a fall of 3.2%.
• Current assets rose 3% and stood at Rs 2 billion, while fixed assets fell 3% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 1%.

BAG FILMS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,352	1,413	4.5
Current Liabilities	Rs m	1,407	1,454	3.4
Long-term Debt	Rs m	421	407	-3.2
Total Liabilities	Rs m	3,796	3,817	0.5
Current assets	Rs m	2,199	2,262	2.9
Fixed Assets	Rs m	1,598	1,555	-2.7
Total Assets	Rs m	3,796	3,817	0.5

BAG FILMS Cash Flow Statement Analysis

• BAG FILMS's cash flow from operating activities (CFO) during FY23 stood at Rs -53 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -107 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -164 million from the Rs 76 million net cash flows seen during FY22.

BAG FILMS 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	-112	-53	-
Cash Flow from Investing Activities	Rs m	278	-4	-
Cash Flow from Financing Activities	Rs m	-89	-107	-
Net Cash Flow	Rs m	76	-164	-

Current Valuations for BAG FILMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.1, an decline from the EPS of Rs 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6.2, stands at 16.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 37.8 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	6.1	5.6
TTM Earnings per share	Rs	0.3	-0.1
Diluted earnings per share	Rs	0.3	-0.1
Price to Cash Flow	x	9.8	37.8
TTM P/E ratio	x	21.9	16.5
Price / Book Value ratio	x	0.7	1.0
Market Cap	Rs m	887	1,416
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BAG FILMS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.6x 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 0.9x during FY23, from 1.5x 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 -1.1% during FY23, from 3.7% 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 4.4% during FY23, from 8.8% 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 2.1% during FY23, from 4.0% 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	1.6	1.6
Debtors’ Days	Days	2,268	2,320
Interest coverage	x	1.5	0.9
Debt to equity ratio	x	0.3	0.3
Return on assets	%	4.0	2.1
Return on equity	%	3.7	-1.1
Return on capital employed	%	8.8	4.4

To see how BAG FILMS has performed over the last 5 years, please visit here.

BAG FILMS Share Price Performance

Over the last one year, BAG FILMS share price has moved up from Rs 5.2 to Rs 6.2, registering a gain of Rs 1.0 or around 19.3%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 14,536.7 (down 0.1%). Over the last one year it has moved up from 13,298.0 to 14,536.7, a gain of 1,239 points (up 9.3%).

Overall, the S&P BSE SENSEX is up 12.9% over the year.

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