BGR ENERGY 2022-23 Annual Report Analysis

Tue, 17 Oct

BGR ENERGY 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.

BGR ENERGY Income Statement Analysis

• Operating income during the year fell 34.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 33.9% in FY23 as against 11.1% in FY22.
• Depreciation charges decreased by 38.8% and finance costs increased by 11.3% YoY, respectively.
• Other income grew by 291.8% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 15.2% in FY22 to 60.5% in FY23.

BGR ENERGY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,207	8,063	-34.0%
Other income	Rs m	129	504	291.8%
Total Revenues	Rs m	12,336	8,567	-30.6%
Gross profit	Rs m	1,355	-2,734	NA
Depreciation	Rs m	274	168	-38.8%
Interest	Rs m	3,638	4,047	11.3%
Profit before tax	Rs m	-2,428	-6,444	NA
Tax	Rs m	-576	-1,566	NA
Profit after tax	Rs m	-1,852	-4,878	NA
Gross profit margin	%	11.1	-33.9
Effective tax rate	%	23.7	24.3
Net profit margin	%	-15.2	-60.5

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BGR ENERGY Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 44 billion as compared to Rs 45 billion in FY22, thereby witnessing an decrease of -1.6%.
• Long-term debt stood at Rs 2 billion as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets fell 2% and stood at Rs 43 billion, while fixed assets fell 40% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 49 billion as against Rs 54 billion during FY22, thereby witnessing a fall of 9%.

BGR ENERGY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,771	919	-84.1
Current Liabilities	Rs m	45,077	44,341	-1.6
Long-term Debt	Rs m	0	2,311	0.0
Total Liabilities	Rs m	53,601	48,801	-9.0
Current assets	Rs m	43,654	42,818	-1.9
Fixed Assets	Rs m	9,947	5,983	-39.9
Total Assets	Rs m	53,601	48,801	-9.0

BGR ENERGY Cash Flow Statement Analysis

• BGR ENERGY's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -20 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion, an improvement of 17% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -43 million from the Rs -349 million net cash flows seen during FY22.

BGR ENERGY 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	3,270	3,042	-7.0%
Cash Flow from Investing Activities	Rs m	80	-20	-
Cash Flow from Financing Activities	Rs m	-3,699	-3,064	-
Net Cash Flow	Rs m	-349	-43	-

Current Valuations for BGR ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -67.6, an decline from the EPS of Rs -25.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 79.6, stands at -1.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at -1.1 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	169.2	111.7
TTM Earnings per share	Rs	-25.7	-67.6
Diluted earnings per share	Rs	-25.7	-67.6
Price to Cash Flow	x	-3.8	-1.1
TTM P/E ratio	x	-3.2	-1.2
Price / Book Value ratio	x	1.0	5.4
Market Cap	Rs m	5,975	5,006
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BGR ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY23, from 1.0x 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 -0.6x during FY23, from 0.3x 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 -530.9% during FY23, from -32.1% 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 -74.2% during FY23, from 21.0% 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 -1.7% during FY23, from 3.3% 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	1.0	1.0
Debtors’ Days	Days	2,183	3,064
Interest coverage	x	0.3	-0.6
Debt to equity ratio	x	0.0	2.5
Return on assets	%	3.3	-1.7
Return on equity	%	-32.1	-530.9
Return on capital employed	%	21.0	-74.2

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

BGR ENERGY Share Price Performance

Over the last one year, BGR ENERGY share price has moved up from Rs 67.7 to Rs 79.6, registering a gain of Rs 12.0 or around 17.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 48,057.9 (down 0.1%). Over the last one year it has moved up from 31,607.7 to 48,057.9, a gain of 16,450 points (up 52.0%).

Overall, the S&P BSE SENSEX is up 16.1% over the year.

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