BALMER LAW INVEST 2023-24 Annual Report Analysis

Fri, 13 Sep

BALMER LAW INVEST has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during the year 2023-24.

BALMER LAW INVEST Income Statement Analysis

• Interest income during the year rose 0.9% on a year-on-year (YoY) basis.
• Interest expenses were up by 22.9% YoY during the same period.
• Operating expenses declined by 3.0% YoY during the year.
• The company's net interest income (NII) increased by 0.7% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a decline and stood at 396.0% in FY24 as against 428.9% in FY23.
• Other income increased by 70.5% YoY during the year.
• Net profit for the year increased by 51.4% YoY.
• Net profit margins during the year increased to 7.2% in FY24 from 4.8% in FY23.

BALMER LAW INVEST Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	23,284	23,482	0.9%
Other Income	Rs m	504	859	70.5%
Interest Expense	Rs m	179	221	22.9%
Net Interest Income	Rs m	23,105	23,261	0.7%
Operating Expense	Rs m	21,333	20,699	-3.0%
Pre-provision Operating Profit	Rs m	2,276	3,422	50.4%
Provisions & Contingencies	Rs m	5,629	8,017	42.4%
Profit before tax	Rs m	2,315	3,411	47.3%
Tax	Rs m	592	774	30.7%
Profit after tax	Rs m	1,109	1,680	51.4%
Minority Interest	Rs m	-614	-958	-55.9%
Net Interest Margin	%	428.9	396.0
Net profit margin	%	4.8	7.2

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

BALMER LAW INVEST Balance Sheet Analysis

• The company's deposits during FY24 stood at Rs 0 m as compared to Rs 0 m in FY23, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 0 m as compared to Rs 0 m during FY23, a rise of 0.0%.
• Cost of deposits for BALMER LAW INVEST rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments rose to Rs 5.9 bn during the year from Rs 5.4 bn in FY23.
• Borrowing stood at Rs 0 m, a growth of 0.0% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 30.2 bn as against Rs 28.0 bn during FY23, thereby witnessing a rise of 8.0%.

BALMER LAW INVEST Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	11,396	12,208	7.1%
Advances	Rs m	0	0	0.0%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	0.0	0.0
Investments	Rs m	5,387	5,874	9.0%
Borrowings	Rs m	0	0	0.0%
Total Assets	Rs m	27,981	30,217	8.0%

Current Valuations for BALMER LAW INVEST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 75.7, an improvement from the EPS of Rs 50.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 97.3, stands at 0.8 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.8 times, while the price to income ratio stands at 0.1 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	1,048.8	1,057.7
Earnings per share (Unadj.)	Rs	50.0	75.7
Diluted earnings per share	Rs	5.0	7.6
Avg P/E ratio	Rs	7.9	0.8
Avg P/ABV ratio	Rs	0.9	1.8
Avg Market Cap	Rs	8,714	1,299
Dividends per share (Unadj.)	Rs	3.30	3.80

Ratio Analysis for BALMER LAW INVEST

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 0.0x during FY24, from 0.0x during FY23. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio decreased and stood at 0.10x during FY24, from 0.11x during FY23. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): BALMER LAW INVEST's capital adequacy ratio (CAR) was at 0.0% as on 31 March 2024 as compared to 0.0% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company improved and stood at 13.8% during FY24, from 9.7% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at 5.56% during FY24, from 3.96% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 28.75% during FY24, from 20.45% during FY23. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. BALMER LAW INVEST's gross NPA ratio stood at 0.0% as of 31 March 2024 compared to 0.0% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of BALMER LAW INVEST was 0.0% in financial year 2024. This compared with 0.0% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Credit/Deposit Ratio	x	0.0	0.0
Debt to Equity Ratio	x	0.1	0.1
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	0.0	0.0
Return on Equity	%	9.7	13.8
Return on Assets	%	4.0	5.6
Return on Capital Employed	%	20.5	28.7
% of Gross NPAs	%	0.0	0.0
% of Net NPAs	%	0.0	0.0
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

To see how BALMER LAW INVEST has performed over the last 5 years, please visit here.

BALMER LAW INVEST Share Price Performance

Over the last one year, BALMER LAW INVEST share price has moved up from Rs 48.0 to Rs 97.3, registering a gain of Rs 49.3 or around 102.6%.

Overall, the S&P BSE SENSEX is up 23.6% over the year.

(To know more, you can check out historical annual results for BALMER LAW INVEST here and quarterly results for BALMER LAW INVEST here)