BHARAT WIRE ROPES 2023-24 Annual Report Analysis

Mon, 16 Sep

BHARAT WIRE ROPES 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 WIRE ROPES Income Statement Analysis

• Operating income during the year rose 5.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.4% in FY24 as against 23.6% in FY23.
• Depreciation charges increased by 2.5% and finance costs decreased by 33.4% YoY, respectively.
• Other income grew by 22.9% YoY.
• Net profit for the year grew by 54.6% YoY.
• Net profit margins during the year grew from 10.6% in FY23 to 15.5% in FY24.

BHARAT WIRE ROPES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,891	6,218	5.6%
Other income	Rs m	7	8	22.9%
Total Revenues	Rs m	5,897	6,227	5.6%
Gross profit	Rs m	1,388	1,639	18.1%
Depreciation	Rs m	207	212	2.5%
Interest	Rs m	222	148	-33.4%
Profit before tax	Rs m	966	1,288	33.3%
Tax	Rs m	344	326	-5.3%
Profit after tax	Rs m	622	962	54.6%
Gross profit margin	%	23.6	26.4
Effective tax rate	%	35.6	25.3
Net profit margin	%	10.6	15.5

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BHARAT WIRE ROPES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 441 million as compared to Rs 719 million in FY23, thereby witnessing an decrease of -38.7%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY23, a fall of 26.6%.
• Current assets rose 21% and stood at Rs 3 billion, while fixed assets rose 2% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 9%.

BHARAT WIRE ROPES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,602	6,570	17.3
Current Liabilities	Rs m	719	441	-38.7
Long-term Debt	Rs m	1,427	1,048	-26.6
Total Liabilities	Rs m	7,669	8,352	8.9
Current assets	Rs m	2,743	3,328	21.3
Fixed Assets	Rs m	4,927	5,025	2.0
Total Assets	Rs m	7,669	8,352	8.9

BHARAT WIRE ROPES Cash Flow Statement Analysis

• BHARAT WIRE ROPES 's cash flow from operating activities (CFO) during FY24 stood at Rs 852 million, an improvement of 2.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -250 million, an improvement of 85.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -606 million, an improvement of 6% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -4 million from the Rs 55 million net cash flows seen during FY23.

BHARAT WIRE ROPES 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	832	852	2.4%
Cash Flow from Investing Activities	Rs m	-135	-250	-
Cash Flow from Financing Activities	Rs m	-642	-606	-
Net Cash Flow	Rs m	55	-4	-

Current Valuations for BHARAT WIRE ROPES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.1, an improvement from the EPS of Rs 9.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 283.5, stands at 21.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 15.8 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	86.8	91.4
TTM Earnings per share	Rs	9.2	14.1
Diluted earnings per share	Rs	9.1	14.0
Price to Cash Flow	x	12.8	15.8
TTM P/E ratio	x	17.1	21.4
Price / Book Value ratio	x	1.3	2.8
Market Cap	Rs m	7,153	18,504
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BHARAT WIRE ROPES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.6x during FY24, from 3.8x 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 improved and stood at 9.7x during FY24, from 5.4x 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 14.6% during FY24, from 11.1% 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 16.9% 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 13.3% during FY24, from 11.0% 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	3.8	7.6
Debtors’ Days	Days	295	465
Interest coverage	x	5.4	9.7
Debt to equity ratio	x	0.3	0.2
Return on assets	%	11.0	13.3
Return on equity	%	11.1	14.6
Return on capital employed	%	16.9	18.8

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

BHARAT WIRE ROPES Share Price Performance

Over the last one year, BHARAT WIRE ROPES share price has moved up from Rs 261.3 to Rs 283.5, registering a gain of Rs 22.2 or around 8.5%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 32,034.8 (up 0.5%). Over the last one year it has moved up from 23,480.2 to 32,034.8, a gain of 8,555 points (up 36.4%).

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

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