BMW INDUSTRIES 2023-24 Annual Report Analysis

Mon, 4 Nov

BMW 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.

BMW INDUSTRIES Income Statement Analysis

• Operating income during the year rose 6.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.5% in FY24 as against 23.1% in FY23.
• Depreciation charges increased by 12.0% and finance costs decreased by 17.4% YoY, respectively.
• Other income declined by 53.1% YoY.
• Net profit for the year grew by 17.1% YoY.
• Net profit margins during the year grew from 9.7% in FY23 to 10.7% in FY24.

BMW INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,623	5,982	6.4%
Other income	Rs m	91	43	-53.1%
Total Revenues	Rs m	5,715	6,025	5.4%
Gross profit	Rs m	1,297	1,463	12.8%
Depreciation	Rs m	397	445	12.0%
Interest	Rs m	240	198	-17.4%
Profit before tax	Rs m	751	863	14.9%
Tax	Rs m	206	225	9.1%
Profit after tax	Rs m	545	638	17.1%
Gross profit margin	%	23.1	24.5
Effective tax rate	%	27.5	26.1
Net profit margin	%	9.7	10.7

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BMW INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 980 million as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -53.4%.
• Long-term debt down at Rs 419 million as compared to Rs 716 million during FY23, a fall of 41.5%.
• Current assets fell 44% and stood at Rs 2 billion, while fixed assets rose 14% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 10 billion during FY23, thereby witnessing a fall of 8%.

BMW INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,025	6,612	9.7
Current Liabilities	Rs m	2,102	980	-53.4
Long-term Debt	Rs m	716	419	-41.5
Total Liabilities	Rs m	9,557	8,755	-8.4
Current assets	Rs m	3,616	2,007	-44.5
Fixed Assets	Rs m	5,911	6,717	13.6
Total Assets	Rs m	9,557	8,755	-8.4

BMW INDUSTRIES Cash Flow Statement Analysis

• BMW INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 113.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 97.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -14 million from the Rs 67 million net cash flows seen during FY23.

BMW 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	1,256	2,682	113.5%
Cash Flow from Investing Activities	Rs m	-571	-1,124	-
Cash Flow from Financing Activities	Rs m	-619	-1,572	-
Net Cash Flow	Rs m	67	-14	-

Current Valuations for BMW INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.8, an improvement from the EPS of Rs 2.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 60.8, stands at 19.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 2.3 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-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	25.0	26.6
TTM Earnings per share	Rs	2.4	2.8
Diluted earnings per share	Rs	2.4	2.8
Price to Cash Flow	x	8.5	11.6
TTM P/E ratio	x	14.7	19.4
Price / Book Value ratio	x	1.2	1.9
Market Cap	Rs m	7,203	12,560
Dividends per share (Unadj.)	Rs	0.2	0.2

Ratio Analysis for BMW INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY24, from 1.7x 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 5.4x during FY24, from 4.1x 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 9.6% during FY24, from 9.0% 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 15.1% during FY24, from 14.7% 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 9.5% during FY24, from 8.2% 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	1.7	2.0
Debtors’ Days	Days	839	376
Interest coverage	x	4.1	5.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.2	9.5
Return on equity	%	9.0	9.6
Return on capital employed	%	14.7	15.1

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

BMW INDUSTRIES Share Price Performance

Over the last one year, BMW INDUSTRIES share price has moved up from Rs 38.0 to Rs 60.8, registering a gain of Rs 22.8 or around 59.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 30,943.0 (down 2.0%). Over the last one year it has moved up from 22,361.0 to 30,943.0, a gain of 8,582 points (up 38.4%).

Overall, the S&P BSE SENSEX is up 23.3% over the year.

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