BALKRISHNA INDUSTRIES 2023-24 Annual Report Analysis

Fri, 28 Jun

BALKRISHNA INDUSTRIES 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.

BALKRISHNA INDUSTRIES Income Statement Analysis

• Operating income during the year fell 4.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.1% in FY24 as against 17.3% in FY23.
• Depreciation charges increased by 14.0% and finance costs increased by 134.8% YoY, respectively.
• Other income grew by 23.4% YoY.
• Net profit for the year grew by 39.2% YoY.
• Net profit margins during the year grew from 10.8% in FY23 to 15.7% in FY24.

BALKRISHNA INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	97,595	93,689	-4.0%
Other income	Rs m	3,642	4,494	23.4%
Total Revenues	Rs m	101,237	98,183	-3.0%
Gross profit	Rs m	16,898	22,558	33.5%
Depreciation	Rs m	5,708	6,507	14.0%
Interest	Rs m	483	1,135	134.8%
Profit before tax	Rs m	14,348	19,410	35.3%
Tax	Rs m	3,774	4,695	24.4%
Profit after tax	Rs m	10,574	14,715	39.2%
Gross profit margin	%	17.3	24.1
Effective tax rate	%	26.3	24.2
Net profit margin	%	10.8	15.7

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

BALKRISHNA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 37 billion as compared to Rs 33 billion in FY23, thereby witnessing an increase of 9.3%.
• Long-term debt down at Rs 7 billion as compared to Rs 10 billion during FY23, a fall of 33.4%.
• Current assets rose 18% and stood at Rs 46 billion, while fixed assets rose 7% and stood at Rs 90 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 137 billion as against Rs 123 billion during FY23, thereby witnessing a growth of 11%.

BALKRISHNA INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	75,569	88,538	17.2
Current Liabilities	Rs m	33,493	36,604	9.3
Long-term Debt	Rs m	10,381	6,914	-33.4
Total Liabilities	Rs m	123,477	136,845	10.8
Current assets	Rs m	39,280	46,441	18.2
Fixed Assets	Rs m	84,197	90,405	7.4
Total Assets	Rs m	123,477	136,845	10.8

BALKRISHNA INDUSTRIES Cash Flow Statement Analysis

• BALKRISHNA INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 21 billion, an improvement of 43.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -15 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 53 million from the Rs 234 million net cash flows seen during FY23.

BALKRISHNA INDUSTRIES 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	14,479	20,826	43.8%
Cash Flow from Investing Activities	Rs m	-17,831	-14,755	-
Cash Flow from Financing Activities	Rs m	3,586	-6,019	-
Net Cash Flow	Rs m	234	53	-77.3%

Current Valuations for BALKRISHNA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 76.1, an improvement from the EPS of Rs 54.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,199.3, stands at 42.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.0 times, while the price to sales ratio stands at 6.6 times.
• The company's price to cash flow (P/CF) ratio stood at 21.5 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	504.8	484.6
TTM Earnings per share	Rs	54.7	76.1
Diluted earnings per share	Rs	54.7	76.1
Price to Cash Flow	x	23.2	21.5
TTM P/E ratio	x	35.7	42.0
Price / Book Value ratio	x	5.4	5.2
Market Cap	Rs m	410,992	456,876
Dividends per share (Unadj.)	Rs	20.0	20.0

Ratio Analysis for BALKRISHNA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.2x 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 deteriorated and stood at 18.1x during FY24, from 30.7x 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 16.6% during FY24, from 14.0% 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 21.5% during FY24, from 17.3% 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 11.6% during FY24, from 9.0% 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	1.2	1.3
Debtors’ Days	Days	417	563
Interest coverage	x	30.7	18.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.0	11.6
Return on equity	%	14.0	16.6
Return on capital employed	%	17.3	21.5

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

BALKRISHNA INDUSTRIES Share Price Performance

Over the last one year, BALKRISHNA INDUSTRIES share price has moved down from Rs 2,363.5 to Rs 0.0, registering a loss of Rs 2,363.5 or around 100.0%.

Overall, the NIFTY 50 is up 0.1% over the year.

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