BRIGHT REAL ESTATE 2022-23 Annual Report Analysis

Mon, 3 Jul

BRIGHT REAL ESTATE 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.

BRIGHT REAL ESTATE Income Statement Analysis

• Operating income during the year rose 1153.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 437.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.3% in FY23 as against 51.9% in FY22.
• Depreciation charges increased by 5.7% and finance costs increased by 228.6% YoY, respectively.
• Other income grew by 31.1% YoY.
• Net profit for the year grew by 150.1% YoY.
• Net profit margins during the year declined from 87.4% in FY22 to 17.4% in FY23.

BRIGHT REAL ESTATE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14	172	1,153.1%
Other income	Rs m	16	20	31.1%
Total Revenues	Rs m	29	193	556.5%
Gross profit	Rs m	7	38	437.9%
Depreciation	Rs m	6	7	5.7%
Interest	Rs m	3	9	228.6%
Profit before tax	Rs m	14	43	218.2%
Tax	Rs m	2	13	738.9%
Profit after tax	Rs m	12	30	150.1%
Gross profit margin	%	51.9	22.3
Effective tax rate	%	11.6	30.5
Net profit margin	%	87.4	17.4

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BRIGHT REAL ESTATE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 606 million in FY22, thereby witnessing an increase of 84.4%.
• Long-term debt stood at Rs 69 million as compared to Rs 66 million during FY22, a growth of 4.4%.
• Current assets rose 37% and stood at Rs 2 billion, while fixed assets rose 151% and stood at Rs 863 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 62%.

BRIGHT REAL ESTATE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	910	1,372	50.8
Current Liabilities	Rs m	606	1,117	84.4
Long-term Debt	Rs m	66	69	4.4
Total Liabilities	Rs m	1,588	2,572	62.0
Current assets	Rs m	1,245	1,709	37.3
Fixed Assets	Rs m	343	863	151.5
Total Assets	Rs m	1,588	2,572	62.0

BRIGHT REAL ESTATE Cash Flow Statement Analysis

• BRIGHT REAL ESTATE's cash flow from operating activities (CFO) during FY23 stood at Rs 345 million, an improvement of 713.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -775 million, an improvement of 1,286.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 449 million, an improvement of 2,097% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 18 million from the Rs 7 million net cash flows seen during FY22.

BRIGHT REAL ESTATE 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	42	345	713.5%
Cash Flow from Investing Activities	Rs m	-56	-775	-
Cash Flow from Financing Activities	Rs m	20	449	2,096.7%
Net Cash Flow	Rs m	7	18	167.3%

Current Valuations for BRIGHT REAL ESTATE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.9, an decline from the EPS of Rs 12.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 193.0, stands at 66.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 11.6 times.
• The company's price to cash flow (P/CF) ratio stood at 55.7 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	14.8	16.7
TTM Earnings per share	Rs	12.9	2.9
Diluted earnings per share	Rs	1.2	2.9
Price to Cash Flow	x	0.0	55.7
TTM P/E ratio	x	0.0	66.4
Price / Book Value ratio	x	0.0	1.5
Market Cap	Rs m	0	2,054
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BRIGHT REAL ESTATE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 2.1x 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 5.9x during FY23, from 6.1x 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 improved and stood at 2.2% during FY23, from 1.3% 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 3.6% during FY23, from 1.7% 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 1.5% during FY23, from 0.9% 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	2.1	1.5
Debtors’ Days	Days	53	0
Interest coverage	x	6.1	5.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	0.9	1.5
Return on equity	%	1.3	2.2
Return on capital employed	%	1.7	3.6

To see how BRIGHT REAL ESTATE has performed over the last 5 years, please visit here.

BRIGHT REAL ESTATE Share Price Performance

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(To know more, check out historical annual results for BRIGHT REAL ESTATE and quarterly results for BRIGHT REAL ESTATE)