BHARAT RASAYAN 2023-24 Annual Report Analysis

Mon, 23 Sep

BHARAT RASAYAN 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 RASAYAN Income Statement Analysis

• Operating income during the year fell 15.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 29.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.6% in FY24 as against 15.1% in FY23.
• Depreciation charges decreased by 0.9% and finance costs decreased by 44.5% YoY, respectively.
• Other income grew by 8.1% YoY.
• Net profit for the year declined by 23.4% YoY.
• Net profit margins during the year declined from 10.1% in FY23 to 9.1% in FY24.

BHARAT RASAYAN Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	12,343	10,446	-15.4%
Other income	Rs m	193	209	8.1%
Total Revenues	Rs m	12,537	10,655	-15.0%
Gross profit	Rs m	1,868	1,316	-29.6%
Depreciation	Rs m	260	258	-0.9%
Interest	Rs m	61	34	-44.5%
Profit before tax	Rs m	1,740	1,233	-29.1%
Tax	Rs m	494	278	-43.7%
Profit after tax	Rs m	1,246	955	-23.4%
Gross profit margin	%	15.1	12.6
Effective tax rate	%	28.4	22.5
Net profit margin	%	10.1	9.1

Dear Reader: If You Invest in Midcap Stocks, this is for You

BHARAT RASAYAN Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 14.4%.
• Current assets rose 14% and stood at Rs 9 billion, while fixed assets rose 3% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 11 billion during FY23, thereby witnessing a growth of 11%.

BHARAT RASAYAN Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,933	9,879	10.6
Current Liabilities	Rs m	1,725	1,973	14.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	10,756	11,977	11.4
Current assets	Rs m	7,929	9,072	14.4
Fixed Assets	Rs m	2,828	2,905	2.7
Total Assets	Rs m	10,756	11,977	11.4

BHARAT RASAYAN Cash Flow Statement Analysis

• BHARAT RASAYAN's cash flow from operating activities (CFO) during FY24 stood at Rs 411 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -897 million, an improvement of 48.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 490 million, an improvement of 132% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 139 million from the Rs 183 million net cash flows seen during FY23.

BHARAT RASAYAN 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	2,133	411	-80.7%
Cash Flow from Investing Activities	Rs m	-605	-897	-
Cash Flow from Financing Activities	Rs m	-1,521	490	-
Net Cash Flow	Rs m	183	139	-24.1%

Current Valuations for BHARAT RASAYAN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 229.6, an decline from the EPS of Rs 299.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 12,052.3, stands at 46.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.1 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 32.3 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	2,967.2	2,511.1
TTM Earnings per share	Rs	299.5	229.6
Diluted earnings per share	Rs	299.9	229.9
Price to Cash Flow	x	25.1	32.3
TTM P/E ratio	x	28.9	46.5
Price / Book Value ratio	x	5.3	4.0
Market Cap	Rs m	47,083	39,218
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for BHARAT RASAYAN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.6x during FY24, from 4.6x 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 37.5x during FY24, from 29.6x 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 declined and down at 9.7% during FY24, from 13.9% 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 declined and down at 12.8% during FY24, from 20.2% 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 declined and down at 8.3% during FY24, from 12.2% 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	4.6	4.6
Debtors’ Days	Days	961	1,375
Interest coverage	x	29.6	37.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.2	8.3
Return on equity	%	13.9	9.7
Return on capital employed	%	20.2	12.8

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

BHARAT RASAYAN Share Price Performance

Over the last one year, BHARAT RASAYAN share price has moved up from Rs 9,227.5 to Rs 12,052.3, registering a gain of Rs 2,824.9 or around 30.6%.

Overall, the S&P BSE SENSEX is up 27.1% over the year.

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