BRIGHTCOM GROUP 2021-22 Annual Report Analysis

Fri, 16 Sep

BRIGHTCOM GROUP has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

BRIGHTCOM GROUP Income Statement Analysis

• Operating income during the year rose 75.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 73.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 29.9% in FY22 as against 30.3% in FY21.
• Depreciation charges increased by 8.9% and finance costs increased by 196.2% YoY, respectively.
• Other income declined by 92.7% YoY.
• Net profit for the year grew by 88.9% YoY.
• Net profit margins during the year grew from 16.9% in FY21 to 18.2% in FY22.

BRIGHTCOM GROUP Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	28,558	50,196	75.8%
Other income	Rs m	212	15	-92.7%
Total Revenues	Rs m	28,770	50,211	74.5%
Gross profit	Rs m	8,650	15,031	73.8%
Depreciation	Rs m	2,261	2,462	8.9%
Interest	Rs m	1	3	196.2%
Profit before tax	Rs m	6,600	12,581	90.6%
Tax	Rs m	1,770	3,459	95.4%
Profit after tax	Rs m	4,830	9,122	88.9%
Gross profit margin	%	30.3	29.9
Effective tax rate	%	26.8	27.5
Net profit margin	%	16.9	18.2

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BRIGHTCOM GROUP Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 6 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 51.0%.
• Current assets rose 97% and stood at Rs 42 billion, while fixed assets rose 11% and stood at Rs 17 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 59 billion as against Rs 37 billion during FY21, thereby witnessing a growth of 61%.

BRIGHTCOM GROUP Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	32,596	52,945	62.4
Current Liabilities	Rs m	4,187	6,321	51.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	36,866	59,392	61.1
Current assets	Rs m	21,457	42,255	96.9
Fixed Assets	Rs m	15,409	17,137	11.2
Total Assets	Rs m	36,866	59,392	61.1

BRIGHTCOM GROUP Cash Flow Statement Analysis

• BRIGHTCOM GROUP's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 5 billion, an improvement of 2,632% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 6 billion from the Rs 75 million net cash flows seen during FY21.

BRIGHTCOM GROUP Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	4,600	2,873	-37.5%
Cash Flow from Investing Activities	Rs m	-4,308	-2,169	-
Cash Flow from Financing Activities	Rs m	-216	5,480	-
Net Cash Flow	Rs m	75	6,185	8,124.3%

Current Valuations for BRIGHTCOM GROUP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.5, an decline from the EPS of Rs 9.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 38.3, stands at 7.1 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 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 18.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	56.3	24.9
TTM Earnings per share	Rs	9.5	4.5
Diluted earnings per share	Rs	2.4	4.5
Price to Cash Flow	x	2.4	18.5
TTM P/E ratio	x	3.5	7.1
Price / Book Value ratio	x	0.1	4.0
Market Cap	Rs m	4,066	213,980
Dividends per share (Unadj.)	Rs	0.1	0.3

Ratio Analysis for BRIGHTCOM GROUP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.7x during FY22, from 5.1x during FY21. 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 4,007.7x during FY22, from 6,227.5x during FY21. 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 17.2% during FY22, from 14.8% during FY22. 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 23.8% during FY22, from 20.3% during FY21. 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 15.4% during FY22, from 13.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	5.1	6.7
Debtors’ Days	Days	1,430	1,368
Interest coverage	x	6,227.5	4,007.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.1	15.4
Return on equity	%	14.8	17.2
Return on capital employed	%	20.3	23.8

To see how BRIGHTCOM GROUP has performed over the last 5 years, please visit here.

BRIGHTCOM GROUP Share Price Performance

Over the last one year, BRIGHTCOM GROUP share price has moved down from Rs 39.5 to Rs 38.3, registering a loss of Rs 1.3 or around 3.2%.

Meanwhile, the S&P BSE IT Index is trading at Rs 27,485.4 (down 2.8%). Over the last one year it has moved down from 35,090.7 to 27,485.4, a loss of 7,605 points (down 21.7%).

Overall, the S&P BSE SENSEX is up 1.1% over the year.

(To know more, check out historical annual results for BRIGHTCOM GROUP and quarterly results for BRIGHTCOM GROUP)