BOMBAY BURMAH 2023-24 Annual Report Analysis

Wed, 24 Jul

BOMBAY BURMAH 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.

BOMBAY BURMAH Income Statement Analysis

• Operating income during the year rose 2.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1088.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.4% in FY24 as against 1.4% in FY23.
• Depreciation charges increased by 31.0% and finance costs decreased by 14.4% YoY, respectively.
• Other income declined by 15.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 4.6% in FY23 to 10.2% in FY24.

BOMBAY BURMAH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	166,229	171,090	2.9%
Other income	Rs m	4,707	3,977	-15.5%
Total Revenues	Rs m	170,936	175,067	2.4%
Gross profit	Rs m	2,363	28,088	1,088.6%
Depreciation	Rs m	2,393	3,134	31.0%
Interest	Rs m	4,253	3,642	-14.4%
Profit before tax	Rs m	425	25,291	5,851.8%
Tax	Rs m	8,142	7,897	-3.0%
Profit after tax	Rs m	-7,717	17,394	NA
Gross profit margin	%	1.4	16.4
Effective tax rate	%	1,916.2	31.2
Net profit margin	%	-4.6	10.2

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BOMBAY BURMAH Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 43 billion as compared to Rs 54 billion in FY23, thereby witnessing an decrease of -21.7%.
• Long-term debt down at Rs 9 billion as compared to Rs 43 billion during FY23, a fall of 78.6%.
• Current assets fell 38% and stood at Rs 52 billion, while fixed assets fell 7% and stood at Rs 67 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 119 billion as against Rs 157 billion during FY23, thereby witnessing a fall of 24%.

BOMBAY BURMAH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	40,323	46,761	16.0
Current Liabilities	Rs m	54,411	42,623	-21.7
Long-term Debt	Rs m	42,709	9,131	-78.6
Total Liabilities	Rs m	156,767	119,157	-24.0
Current assets	Rs m	84,148	52,188	-38.0
Fixed Assets	Rs m	72,171	66,892	-7.3
Total Assets	Rs m	156,767	119,157	-24.0

BOMBAY BURMAH Cash Flow Statement Analysis

• BOMBAY BURMAH's cash flow from operating activities (CFO) during FY24 stood at Rs 20 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 38 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -56 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -500 million net cash flows seen during FY23.

BOMBAY BURMAH 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	24,745	20,379	-17.6%
Cash Flow from Investing Activities	Rs m	-18,294	37,866	-
Cash Flow from Financing Activities	Rs m	-7,052	-56,476	-
Net Cash Flow	Rs m	-500	2,041	-

Current Valuations for BOMBAY BURMAH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 249.3, an improvement from the EPS of Rs -110.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,242.1, stands at 8.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 4.5 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	2,382.5	2,452.2
TTM Earnings per share	Rs	-110.6	249.3
Diluted earnings per share	Rs	-110.6	249.3
Price to Cash Flow	x	-10.6	4.5
TTM P/E ratio	x	19.8	8.1
Price / Book Value ratio	x	1.6	2.0
Market Cap	Rs m	66,154	92,587
Dividends per share (Unadj.)	Rs	1.2	1.2

Ratio Analysis for BOMBAY BURMAH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x 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 7.9x during FY24, from 1.1x 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 37.2% during FY24, from -19.1% 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 51.8% during FY24, from 5.6% 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 17.7% during FY24, from -2.2% 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	1.5	1.2
Debtors’ Days	Days	86	99
Interest coverage	x	1.1	7.9
Debt to equity ratio	x	1.1	0.2
Return on assets	%	-2.2	17.7
Return on equity	%	-19.1	37.2
Return on capital employed	%	5.6	51.8

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

BOMBAY BURMAH Share Price Performance

Over the last one year, BOMBAY BURMAH share price has moved up from Rs 1,119.9 to Rs 2,242.1, registering a gain of Rs 1,122.2 or around 100.2%.

Overall, the S&P BSE SENSEX is up 20.7% over the year.

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