BANARAS BEADS 2022-23 Annual Report Analysis

Tue, 13 Jun

BANARAS BEADS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

BANARAS BEADS Income Statement Analysis

• Operating income during the year rose 7.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.5% in FY23 as against 12.5% in FY22.
• Depreciation charges decreased by 3.7% and finance costs increased by 212.7% YoY, respectively.
• Other income declined by 18.0% YoY.
• Net profit for the year declined by 12.9% YoY.
• Net profit margins during the year declined from 11.6% in FY22 to 9.4% in FY23.

BANARAS BEADS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	251	270	7.4%
Other income	Rs m	22	18	-18.0%
Total Revenues	Rs m	273	288	5.3%
Gross profit	Rs m	31	36	15.7%
Depreciation	Rs m	13	12	-3.7%
Interest	Rs m	3	8	212.7%
Profit before tax	Rs m	38	34	-10.3%
Tax	Rs m	9	9	-1.6%
Profit after tax	Rs m	29	25	-12.9%
Gross profit margin	%	12.5	13.5
Effective tax rate	%	23.3	25.5
Net profit margin	%	11.6	9.4

Don't Miss: Key Information for Long-term Investors

BANARAS BEADS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 26 million as compared to Rs 81 million in FY22, thereby witnessing an decrease of -68.5%.
• Current assets fell 24% and stood at Rs 311 million, while fixed assets rose 31% and stood at Rs 248 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 559 million as against Rs 597 million during FY22, thereby witnessing a fall of 6%.

BANARAS BEADS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	516	528	2.3
Current Liabilities	Rs m	81	26	-68.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	597	559	-6.4
Current assets	Rs m	409	311	-23.9
Fixed Assets	Rs m	189	248	31.4
Total Assets	Rs m	597	559	-6.4

BANARAS BEADS Cash Flow Statement Analysis

• BANARAS BEADS's cash flow from operating activities (CFO) during FY23 stood at Rs -44 million, an improvement of 11.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 9 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -76 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -111 million from the Rs 60 million net cash flows seen during FY22.

BANARAS BEADS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-40	-44	-
Cash Flow from Investing Activities	Rs m	101	9	-90.6%
Cash Flow from Financing Activities	Rs m	-1	-76	-
Net Cash Flow	Rs m	60	-111	-

Current Valuations for BANARAS BEADS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.8, an decline from the EPS of Rs 4.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 83.9, stands at 21.9 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 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 14.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	37.8	40.6
TTM Earnings per share	Rs	4.4	3.8
Diluted earnings per share	Rs	4.4	3.8
Price to Cash Flow	x	14.5	14.7
TTM P/E ratio	x	20.9	21.9
Price / Book Value ratio	x	1.0	1.1
Market Cap	Rs m	532	555
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for BANARAS BEADS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 12.1x during FY23, from 5.0x during FY22. 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 5.3x during FY23, from 16.1x during FY22. 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 4.8% during FY23, from 5.7% during FY23. 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 8.0% during FY23, from 7.9% during FY22. 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 6.0% during FY23, from 5.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	5.0	12.1
Debtors’ Days	Days	667	839
Interest coverage	x	16.1	5.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.3	6.0
Return on equity	%	5.7	4.8
Return on capital employed	%	7.9	8.0

To see how BANARAS BEADS has performed over the last 5 years, please visit here.

BANARAS BEADS Share Price Performance

Over the last one year, BANARAS BEADS share price has moved up from Rs 73.5 to Rs 83.9, registering a gain of Rs 10.4 or around 14.1%.

Overall, the S&P BSE SENSEX is up 14.1% over the year.

(To know more, check out historical annual results for BANARAS BEADS and quarterly results for BANARAS BEADS)