BOMBAY CYCLE 2021-22 Annual Report Analysis

Wed, 27 Jul

BOMBAY CYCLE has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

BOMBAY CYCLE Income Statement Analysis

• Operating income during the year rose 40.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.6% in FY22 as against 25.6% in FY21.
• Depreciation charges increased by 1.1% increased by 0.0% YoY, respectively.
• Other income declined by 21.2% YoY.
• Net profit for the year declined by 4.6% YoY.
• Net profit margins during the year declined from 47.9% in FY21 to 32.5% in FY22.

BOMBAY CYCLE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	42	59	40.5%
Other income	Rs m	16	13	-21.2%
Total Revenues	Rs m	58	71	23.4%
Gross profit	Rs m	11	14	35.2%
Depreciation	Rs m	1	1	1.1%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	26	26	1.4%
Tax	Rs m	6	7	22.5%
Profit after tax	Rs m	20	19	-4.6%
Gross profit margin	%	25.6	24.6
Effective tax rate	%	22.3	26.9
Net profit margin	%	47.9	32.5

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

BOMBAY CYCLE Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 46 million as compared to Rs 38 million in FY21, thereby witnessing an increase of 18.7%.
• Current assets fell 49% and stood at Rs 120 million, while fixed assets rose 530% and stood at Rs 168 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 288 million as against Rs 264 million during FY21, thereby witnessing a growth of 9%.

BOMBAY CYCLE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	212	229	7.9
Current Liabilities	Rs m	38	46	18.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	264	288	9.1
Current assets	Rs m	237	120	-49.4
Fixed Assets	Rs m	27	168	530.0
Total Assets	Rs m	264	288	9.1

BOMBAY CYCLE Cash Flow Statement Analysis

• BOMBAY CYCLE's cash flow from operating activities (CFO) during FY22 stood at Rs 18 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -17 million, an improvement of 529.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 0 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 1 million from the Rs -4 million net cash flows seen during FY21.

BOMBAY CYCLE Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-1	18	-
Cash Flow from Investing Activities	Rs m	-3	-17	-
Cash Flow from Financing Activities	Rs m	0	0	0.0%
Net Cash Flow	Rs m	-4	1	-

Current Valuations for BOMBAY CYCLE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 47.7, an decline from the EPS of Rs 50.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 613.0, stands at 12.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 4.2 times.
• The company's price to cash flow (P/CF) ratio stood at 11.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	104.4	146.7
TTM Earnings per share	Rs	50.0	47.7
Diluted earnings per share	Rs	50.0	47.7
Price to Cash Flow	x	8.3	11.6
TTM P/E ratio	x	10.9	12.8
Price / Book Value ratio	x	1.1	1.0
Market Cap	Rs m	240	232
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for BOMBAY CYCLE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY22, from 6.2x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 8.3% during FY22, from 9.4% during FY22. 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 11.4% during FY22, from 12.2% during FY21. 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 6.6% during FY22, from 7.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	6.2	2.6
Debtors’ Days	Days	1,439	193
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.6	6.6
Return on equity	%	9.4	8.3
Return on capital employed	%	12.2	11.4

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

BOMBAY CYCLE Share Price Performance

Over the last one year, BOMBAY CYCLE share price has moved down from Rs 661.0 to Rs 613.0, registering a loss of Rs 48.0 or around 7.3%.

Overall, the S&P BSE SENSEX is up 5.3% over the year.

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