BHARAT SEATS 2023-24 Annual Report Analysis

Tue, 25 Jun

BHARAT SEATS 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.

BHARAT SEATS Income Statement Analysis

• Operating income during the year rose 1.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.7% in FY24 as against 4.4% in FY23.
• Depreciation charges increased by 40.6% and finance costs increased by 113.0% YoY, respectively.
• Other income grew by 10.8% YoY.
• Net profit for the year grew by 16.3% YoY.
• Net profit margins during the year grew from 2.1% in FY23 to 2.3% in FY24.

BHARAT SEATS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,510	10,668	1.5%
Other income	Rs m	41	45	10.8%
Total Revenues	Rs m	10,551	10,714	1.5%
Gross profit	Rs m	462	608	31.4%
Depreciation	Rs m	171	240	40.6%
Interest	Rs m	36	77	113.0%
Profit before tax	Rs m	296	336	13.3%
Tax	Rs m	81	85	5.5%
Profit after tax	Rs m	215	251	16.3%
Gross profit margin	%	4.4	5.7
Effective tax rate	%	27.3	25.4
Net profit margin	%	2.1	2.3

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

BHARAT SEATS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 27.6%.
• Long-term debt stood at Rs 530 million as compared to Rs 326 million during FY23, a growth of 62.7%.
• Current assets rose 24% and stood at Rs 2 billion, while fixed assets rose 52% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 41%.

BHARAT SEATS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,463	1,668	14.0
Current Liabilities	Rs m	1,669	2,130	27.6
Long-term Debt	Rs m	326	530	62.7
Total Liabilities	Rs m	3,578	5,053	41.2
Current assets	Rs m	1,318	1,628	23.6
Fixed Assets	Rs m	2,260	3,424	51.5
Total Assets	Rs m	3,578	5,053	41.2

BHARAT SEATS Cash Flow Statement Analysis

• BHARAT SEATS's cash flow from operating activities (CFO) during FY24 stood at Rs 567 million, an improvement of 33.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -726 million, an improvement of 23.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 157 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 million from the Rs 3 million net cash flows seen during FY23.

BHARAT SEATS 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	425	567	33.4%
Cash Flow from Investing Activities	Rs m	-591	-726	-
Cash Flow from Financing Activities	Rs m	168	157	-6.5%
Net Cash Flow	Rs m	3	-2	-

Current Valuations for BHARAT SEATS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.0, an improvement from the EPS of Rs 6.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 152.1, stands at 19.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 9.1 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	334.7	339.8
TTM Earnings per share	Rs	6.9	8.0
Diluted earnings per share	Rs	6.9	8.0
Price to Cash Flow	x	6.6	9.1
TTM P/E ratio	x	11.8	19.1
Price / Book Value ratio	x	1.9	2.7
Market Cap	Rs m	2,827	4,481
Dividends per share (Unadj.)	Rs	1.4	1.6

Ratio Analysis for BHARAT SEATS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY24, from 0.8x 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 deteriorated and stood at 5.3x during FY24, from 9.2x 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 15.0% during FY24, from 14.7% 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 18.8% during FY24, from 18.6% 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 declined and down at 6.5% during FY24, from 7.0% 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	0.8	0.8
Debtors’ Days	Days	335	353
Interest coverage	x	9.2	5.3
Debt to equity ratio	x	0.2	0.3
Return on assets	%	7.0	6.5
Return on equity	%	14.7	15.0
Return on capital employed	%	18.6	18.8

To see how BHARAT SEATS has performed over the last 5 years, please visit here.

BHARAT SEATS Share Price Performance

Over the last one year, BHARAT SEATS share price has moved up from Rs 120.0 to Rs 152.1, registering a gain of Rs 32.1 or around 26.8%.

Overall, the S&P BSE SENSEX is up 21.8% over the year.

(To know more, check out historical annual results for BHARAT SEATS and quarterly results for BHARAT SEATS)