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BHARAT ELECTRONICS 2023-24 Annual Report Analysis

Wed, 7 Aug

BHARAT ELECTRONICS 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 ELECTRONICS Income Statement Analysis

• Operating income during the year rose 14.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.0% in FY24 as against 22.5% in FY23.
• Depreciation charges increased by 3.4% and finance costs decreased by 36.0% YoY, respectively.
• Other income grew by 127.6% YoY.
• Net profit for the year grew by 34.1% YoY.
• Net profit margins during the year grew from 16.6% in FY23 to 19.5% in FY24.

BHARAT ELECTRONICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	177,344	202,682	14.3%
Other income	Rs m	3,737	8,506	127.6%
Total Revenues	Rs m	181,082	211,189	16.6%
Gross profit	Rs m	39,969	48,708	21.9%
Depreciation	Rs m	4,288	4,432	3.4%
Interest	Rs m	188	121	-36.0%
Profit before tax	Rs m	39,229	52,662	34.2%
Tax	Rs m	9,826	13,231	34.7%
Profit after tax	Rs m	29,404	39,431	34.1%
Gross profit margin	%	22.5	24.0
Effective tax rate	%	25.0	25.1
Net profit margin	%	16.6	19.5

For Investors: Our Big Prediction

BHARAT ELECTRONICS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 220 billion as compared to Rs 206 billion in FY23, thereby witnessing an increase of 7.1%.
• Current assets rose 13% and stood at Rs 341 billion, while fixed assets fell 1% and stood at Rs 49 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 390 billion as against Rs 350 billion during FY23, thereby witnessing a growth of 11%.

BHARAT ELECTRONICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	138,616	163,265	17.8
Current Liabilities	Rs m	205,658	220,267	7.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	349,875	389,520	11.3
Current assets	Rs m	300,477	340,630	13.4
Fixed Assets	Rs m	49,397	48,890	-1.0
Total Assets	Rs m	349,875	389,520	11.3

BHARAT ELECTRONICS Cash Flow Statement Analysis

• BHARAT ELECTRONICS's cash flow from operating activities (CFO) during FY24 stood at Rs 47 billion, an improvement of 288.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -59 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -15 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -27 billion from the Rs 26 billion net cash flows seen during FY23.

BHARAT ELECTRONICS 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	11,993	46,595	288.5%
Cash Flow from Investing Activities	Rs m	27,077	-59,239	-
Cash Flow from Financing Activities	Rs m	-12,621	-14,750	-
Net Cash Flow	Rs m	26,448	-27,394	-

Current Valuations for BHARAT ELECTRONICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.4, an improvement from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 296.5, stands at 51.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.3 times, while the price to sales ratio stands at 10.7 times.
• The company's price to cash flow (P/CF) ratio stood at 26.0 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	24.3	27.7
TTM Earnings per share	Rs	4.0	5.4
Diluted earnings per share	Rs	4.0	5.4
Price to Cash Flow	x	21.2	26.0
TTM P/E ratio	x	24.3	51.7
Price / Book Value ratio	x	4.9	7.0
Market Cap	Rs m	676,581	1,140,325
Dividends per share (Unadj.)	Rs	1.8	2.2

Ratio Analysis for BHARAT ELECTRONICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY24, from 1.5x 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 437.7x during FY24, from 209.3x 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 24.2% during FY24, from 21.2% 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 32.3% during FY24, from 28.4% 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 10.2% during FY24, from 8.5% 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	1.5	1.5
Debtors’ Days	Days	1,448	1,331
Interest coverage	x	209.3	437.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.5	10.2
Return on equity	%	21.2	24.2
Return on capital employed	%	28.4	32.3

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

BHARAT ELECTRONICS Share Price Performance

Over the last one year, BHARAT ELECTRONICS share price has moved up from Rs 128.4 to Rs 296.5, registering a gain of Rs 168.1 or around 130.9%.

Overall, the S&P BSE SENSEX is up 20.5% over the year.

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