BHARAT DYNAMICS 2023-24 Annual Report Analysis

Mon, 9 Sep

BHARAT DYNAMICS 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.

BHARAT DYNAMICS Income Statement Analysis

• Operating income during the year fell 4.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.7% in FY24 as against 16.4% in FY23.
• Depreciation charges decreased by 13.2% and finance costs decreased by 35.1% YoY, respectively.
• Other income grew by 132.8% YoY.
• Net profit for the year grew by 74.0% YoY.
• Net profit margins during the year grew from 14.1% in FY23 to 25.9% in FY24.

BHARAT DYNAMICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	24,894	23,693	-4.8%
Other income	Rs m	1,554	3,618	132.8%
Total Revenues	Rs m	26,448	27,311	3.3%
Gross profit	Rs m	4,092	5,371	31.2%
Depreciation	Rs m	773	670	-13.2%
Interest	Rs m	56	36	-35.1%
Profit before tax	Rs m	4,818	8,282	71.9%
Tax	Rs m	1,296	2,155	66.3%
Profit after tax	Rs m	3,522	6,127	74.0%
Gross profit margin	%	16.4	22.7
Effective tax rate	%	26.9	26.0
Net profit margin	%	14.1	25.9

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BHARAT DYNAMICS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 30 billion as compared to Rs 22 billion in FY23, thereby witnessing an increase of 36.3%.
• Current assets rose 22% and stood at Rs 92 billion, while fixed assets rose 2% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 103 billion as against Rs 86 billion during FY23, thereby witnessing a growth of 19%.

BHARAT DYNAMICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	32,115	36,368	13.2
Current Liabilities	Rs m	22,060	30,058	36.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	86,160	102,693	19.2
Current assets	Rs m	76,001	92,390	21.6
Fixed Assets	Rs m	9,978	10,136	1.6
Total Assets	Rs m	86,160	102,693	19.2

BHARAT DYNAMICS Cash Flow Statement Analysis

• BHARAT DYNAMICS's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -7 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 13% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -5 billion from the Rs 8 billion net cash flows seen during FY23.

BHARAT DYNAMICS 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	21,303	4,117	-80.7%
Cash Flow from Investing Activities	Rs m	-11,710	-7,224	-
Cash Flow from Financing Activities	Rs m	-1,714	-1,484	-
Net Cash Flow	Rs m	7,878	-4,590	-

Current Valuations for BHARAT DYNAMICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.4, an improvement from the EPS of Rs 19.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,248.1, stands at 79.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.6 times, while the price to sales ratio stands at 9.7 times.
• The company's price to cash flow (P/CF) ratio stood at 19.4 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	135.8	129.3
TTM Earnings per share	Rs	19.2	33.4
Diluted earnings per share	Rs	9.6	16.7
Price to Cash Flow	x	42.2	19.4
TTM P/E ratio	x	51.5	79.1
Price / Book Value ratio	x	4.5	3.6
Market Cap	Rs m	144,073	132,210
Dividends per share (Unadj.)	Rs	4.7	4.6

Ratio Analysis for BHARAT DYNAMICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.1x during FY24, from 3.4x 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 230.7x during FY24, from 87.8x 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 16.8% during FY24, from 11.0% 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 22.9% during FY24, from 15.2% 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 6.0% during FY24, from 4.2% 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	3.4	3.1
Debtors’ Days	Days	271	478
Interest coverage	x	87.8	230.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.2	6.0
Return on equity	%	11.0	16.8
Return on capital employed	%	15.2	22.9

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 596.6 to Rs 1,248.1, registering a gain of Rs 651.6 or around 109.2%.

Overall, the S&P BSE SENSEX is up 23.3% over the year.

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