BEMCO HYDRAULICS 2022-23 Annual Report Analysis

Mon, 3 Jul

BEMCO HYDRAULICS 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.

BEMCO HYDRAULICS Income Statement Analysis

• Operating income during the year fell 29.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 35.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.5% in FY23 as against 16.9% in FY22.
• Depreciation charges decreased by 12.7% and finance costs decreased by 46.6% YoY, respectively.
• Other income declined by 14.9% YoY.
• Net profit for the year declined by 19.4% YoY.
• Net profit margins during the year grew from 8.8% in FY22 to 10.1% in FY23.

BEMCO HYDRAULICS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	655	461	-29.7%
Other income	Rs m	6	5	-14.9%
Total Revenues	Rs m	661	466	-29.6%
Gross profit	Rs m	111	71	-35.5%
Depreciation	Rs m	9	8	-12.7%
Interest	Rs m	26	14	-46.6%
Profit before tax	Rs m	81	54	-33.0%
Tax	Rs m	23	7	-67.6%
Profit after tax	Rs m	58	47	-19.4%
Gross profit margin	%	16.9	15.5
Effective tax rate	%	28.2	13.6
Net profit margin	%	8.8	10.1

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

BEMCO HYDRAULICS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 298 million as compared to Rs 351 million in FY22, thereby witnessing an decrease of -15.3%.
• Long-term debt down at Rs 32 million as compared to Rs 32 million during FY22, a fall of 1.6%.
• Current assets rose 4% and stood at Rs 476 million, while fixed assets fell 2% and stood at Rs 440 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 916 million as against Rs 906 million during FY22, thereby witnessing a growth of 1%.

BEMCO HYDRAULICS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	433	501	15.8
Current Liabilities	Rs m	351	298	-15.3
Long-term Debt	Rs m	32	32	-1.6
Total Liabilities	Rs m	906	916	1.1
Current assets	Rs m	458	476	3.9
Fixed Assets	Rs m	448	440	-1.8
Total Assets	Rs m	906	916	1.1

BEMCO HYDRAULICS Cash Flow Statement Analysis

• BEMCO HYDRAULICS 's cash flow from operating activities (CFO) during FY23 stood at Rs -74 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 8 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -22 million, an improvement of 61% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -88 million from the Rs 60 million net cash flows seen during FY22.

BEMCO HYDRAULICS 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	125	-74	-
Cash Flow from Investing Activities	Rs m	-9	8	-
Cash Flow from Financing Activities	Rs m	-56	-22	-
Net Cash Flow	Rs m	60	-88	-

Current Valuations for BEMCO HYDRAULICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.3, an decline from the EPS of Rs 26.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 571.0, stands at 32.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 20.7 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	299.1	210.3
TTM Earnings per share	Rs	26.5	21.3
Diluted earnings per share	Rs	26.5	21.4
Price to Cash Flow	x	7.8	20.7
TTM P/E ratio	x	9.3	32.1
Price / Book Value ratio	x	1.6	2.3
Market Cap	Rs m	671	1,137
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BEMCO HYDRAULICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.3x 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 improved and stood at 4.8x during FY23, from 4.1x 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 9.3% during FY23, from 13.4% 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 12.8% during FY23, from 23.0% 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 6.6% during FY23, from 9.3% 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	1.3	1.6
Debtors’ Days	Days	916	1,367
Interest coverage	x	4.1	4.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.3	6.6
Return on equity	%	13.4	9.3
Return on capital employed	%	23.0	12.8

To see how BEMCO HYDRAULICS has performed over the last 5 years, please visit here.

BEMCO HYDRAULICS Share Price Performance

Over the last one year, BEMCO HYDRAULICS share price has moved up from Rs 330.8 to Rs 571.0, registering a gain of Rs 240.2 or around 72.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 40,720.8 (down 0.0%). Over the last one year it has moved up from 26,027.1 to 40,720.8, a gain of 14,694 points (up 56.5%).

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for BEMCO HYDRAULICS and quarterly results for BEMCO HYDRAULICS )