BEML 2023-24 Annual Report Analysis

Mon, 2 Sep

BEML 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.

BEML Income Statement Analysis

• Operating income during the year rose 4.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.2% in FY24 as against 9.6% in FY23.
• Depreciation charges decreased by 0.4% and finance costs decreased by 11.3% YoY, respectively.
• Other income grew by 79.0% YoY.
• Net profit for the year grew by 78.5% YoY.
• Net profit margins during the year grew from 4.0% in FY23 to 6.9% in FY24.

BEML Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	38,989	40,543	4.0%
Other income	Rs m	236	422	79.0%
Total Revenues	Rs m	39,225	40,966	4.4%
Gross profit	Rs m	3,751	4,537	21.0%
Depreciation	Rs m	641	638	-0.4%
Interest	Rs m	569	505	-11.3%
Profit before tax	Rs m	2,777	3,816	37.4%
Tax	Rs m	1,198	999	-16.7%
Profit after tax	Rs m	1,579	2,818	78.5%
Gross profit margin	%	9.6	11.2
Effective tax rate	%	43.1	26.2
Net profit margin	%	4.0	6.9

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

BEML Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 19 billion as compared to Rs 18 billion in FY23, thereby witnessing an increase of 5.6%.
• Current assets rose 9% and stood at Rs 46 billion, while fixed assets rose 6% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 53 billion as against Rs 49 billion during FY23, thereby witnessing a growth of 9%.

BEML Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	24,215	26,680	10.2
Current Liabilities	Rs m	17,863	18,868	5.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	49,015	53,319	8.8
Current assets	Rs m	42,542	46,468	9.2
Fixed Assets	Rs m	6,047	6,426	6.3
Total Assets	Rs m	49,015	53,319	8.8

BEML Cash Flow Statement Analysis

• BEML's cash flow from operating activities (CFO) during FY24 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -677 million, an improvement of 237.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 61% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs 2 billion net cash flows seen during FY23.

BEML 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	5,600	4,577	-18.3%
Cash Flow from Investing Activities	Rs m	-201	-677	-
Cash Flow from Financing Activities	Rs m	-3,315	-1,298	-
Net Cash Flow	Rs m	2,085	2,602	24.8%

Current Valuations for BEML

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 67.7, an improvement from the EPS of Rs 37.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,775.8, stands at 54.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 32.1 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	936.3	973.7
TTM Earnings per share	Rs	37.9	67.7
Diluted earnings per share	Rs	37.9	67.7
Price to Cash Flow	x	23.6	32.1
TTM P/E ratio	x	33.1	54.9
Price / Book Value ratio	x	2.6	4.2
Market Cap	Rs m	63,287	110,845
Dividends per share (Unadj.)	Rs	10.0	20.5

Ratio Analysis for BEML

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 2.4x 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 8.6x during FY24, from 5.9x 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 10.6% during FY24, from 6.5% 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 16.2% during FY24, from 13.8% 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 6.2% during FY24, from 4.4% 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	2.4	2.5
Debtors’ Days	Days	1,158	1,296
Interest coverage	x	5.9	8.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.4	6.2
Return on equity	%	6.5	10.6
Return on capital employed	%	13.8	16.2

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

BEML Share Price Performance

Over the last one year, BEML share price has moved up from Rs 2,496.1 to Rs 3,775.8, registering a gain of Rs 1,279.8 or around 51.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,699.2 (down 0.6%). Over the last one year it has moved up from 45,406.6 to 72,699.2, a gain of 27,293 points (up 60.1%).

Overall, the S&P BSE SENSEX is up 26.9% over the year.

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