BHANSALI ENG 2023-24 Annual Report Analysis

Wed, 5 Jun

BHANSALI ENG 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.

BHANSALI ENG Income Statement Analysis

• Operating income during the year fell 10.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.2% in FY24 as against 15.9% in FY23.
• Depreciation charges decreased by 2.2% and finance costs decreased by 82.5% YoY, respectively.
• Other income grew by 36.7% YoY.
• Net profit for the year grew by 31.2% YoY.
• Net profit margins during the year grew from 12.2% in FY23 to 17.9% in FY24.

BHANSALI ENG Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,173	10,040	-10.1%
Other income	Rs m	289	395	36.7%
Total Revenues	Rs m	11,462	10,435	-9.0%
Gross profit	Rs m	1,778	2,128	19.7%
Depreciation	Rs m	99	97	-2.2%
Interest	Rs m	12	2	-82.5%
Profit before tax	Rs m	1,956	2,424	23.9%
Tax	Rs m	589	630	7.1%
Profit after tax	Rs m	1,368	1,794	31.2%
Gross profit margin	%	15.9	21.2
Effective tax rate	%	30.1	26.0
Net profit margin	%	12.2	17.9

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

BHANSALI ENG Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 797 million in FY23, thereby witnessing an increase of 40.3%.
• Current assets fell 6% and stood at Rs 8 billion, while fixed assets fell 20% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 12 billion during FY23, thereby witnessing a fall of 10%.

BHANSALI ENG Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	10,680	9,228	-13.6
Current Liabilities	Rs m	797	1,118	40.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	11,671	10,558	-9.5
Current assets	Rs m	8,667	8,161	-5.8
Fixed Assets	Rs m	3,004	2,397	-20.2
Total Assets	Rs m	11,671	10,558	-9.5

BHANSALI ENG Cash Flow Statement Analysis

• BHANSALI ENG's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 64.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 451 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -485 million from the Rs 750 million net cash flows seen during FY23.

BHANSALI ENG 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	1,401	2,299	64.1%
Cash Flow from Investing Activities	Rs m	-153	451	-
Cash Flow from Financing Activities	Rs m	-498	-3,235	-
Net Cash Flow	Rs m	750	-485	-

Current Valuations for BHANSALI ENG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.2, an decline from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 92.5, stands at 12.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 12.1 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	67.3	40.3
TTM Earnings per share	Rs	8.2	7.2
Diluted earnings per share	Rs	5.5	7.2
Price to Cash Flow	x	11.1	12.1
TTM P/E ratio	x	12.0	12.9
Price / Book Value ratio	x	1.8	2.5
Market Cap	Rs m	19,228	22,941
Dividends per share (Unadj.)	Rs	17.0	4.0

Ratio Analysis for BHANSALI ENG

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 7.3x during FY24, from 10.9x 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 1,183.4x during FY24, from 167.9x 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 19.4% during FY24, from 12.8% 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 26.3% during FY24, from 18.4% 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 17.0% during FY24, from 11.8% 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	10.9	7.3
Debtors’ Days	Days	777	836
Interest coverage	x	167.9	1,183.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.8	17.0
Return on equity	%	12.8	19.4
Return on capital employed	%	18.4	26.3

To see how BHANSALI ENG has performed over the last 5 years, please visit here.

BHANSALI ENG Share Price Performance

Over the last one year, BHANSALI ENG share price has moved down from Rs 109.6 to Rs 92.5, registering a loss of Rs 17.1 or around 15.6%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 26,712.3 (down 0.1%). Over the last one year it has moved up from 17,857.2 to 26,712.3, a gain of 8,855 points (up 49.6%).

Overall, the S&P BSE SENSEX is up 16.6% over the year.

(To know more, check out historical annual results for BHANSALI ENG and quarterly results for BHANSALI ENG)