BHANSALI ENGINEERING POLYMERS LTD
Q3 FY 21 RESULTS ANALYSIS
11 01 2021
Bhansali Engineering Polymers Ltd (BEPL) is a leading name in the petrochemical sector in India. BEPL is a vertically integrated petrochemical company that is into manufacturing of ABS (Acrylonitrile Butadiene Styrene) -- a raw material used extensively across industries like automobiles, home appliances, telecommunications, luggage and other sectors.
Major clients of the company include large Indian brands namely Bajaj, Exide, Fiat, Aquaguard, Beetel, VIP, Samsonite, BPL, Onida, Sanyo, Videocon, Voltas, Whirpool, Electrolux, Crompton, IFB, LG, Kenstar, Tata, Toyota, and may more.
The company`s product include the following Abstron,Santron & High Rubber Graft
BOARD OF DIRECTORS
Mr. M. C. Gupta Chairman, Non-Executive Independent Director
Mr. B. M. Bhansali Managing Director
Mr. Jayesh B. Bhansali Executive Director cum CFO
|
BEPLs (in Rs. Cr.) |
DEC'20 |
Sep '20 |
Jun '20 |
Mar '20 |
Dec '19 |
YOY |
QOQ |
|
Net Sales |
411.27 |
307.85 |
99.40 |
251.41 |
260.07 |
58.14 |
39.77 |
|
Raw Materials |
106.79 |
121.1 |
81.17 |
141.88 |
151.83 |
-29.66 |
-9.43 |
|
Profit Before Tax |
183.26 |
45.53 |
-1.16 |
10.33 |
22.87 |
701.31 |
602.23 |
|
Tax |
46.97 |
10.03 |
0.09 |
2.59 |
5.95 |
689.41 |
620.84 |
|
Net Profit |
136.29 |
35.5 |
-1.25 |
7.74 |
16.91 |
705.97 |
596.04 |
|
FINAL NET PROFIT |
136.29 |
35.79 |
-1.39 |
7.79 |
16.92 |
705.5 |
593.97 |
|
Equity Share |
16.59 |
16.59 |
16.59 |
16.59 |
16.59 |
0 |
0 |
|
Basic EPS |
8.22 |
2.14 |
-0.08 |
0.47 |
1.02 |
705.88 |
596.08 |
MP 169
PE : 5.14
TECHNICAL RATING : VERY BULLISH
Price Performance
1 Week 13.07%
1 Month 30.48%
3 Months 73.44%
1 Year 211.71%
3 Years -17.05%
SHAREHOLDING :
· Promoters holding remains unchanged at 56.45% in Dec 2020 qtr
· Mutual Funds have decreased holdings from 0.01% to 0.0% in Dec 2020 qtr
· Number of MF schemes decreased from 2 to 1 in Dec 2020 qtr
· FII/FPI have increased holdings from 0.43% to 0.9% in Dec 2020 qtr.
ANNUAL REPORT 2019-20
Particulars2019-2020
Installed Capacity (TPA)1,37,000
Equity Share Capital1,659.06
Other Equity 33,961.29
Total Equity (Net Worth) 35,620.35
Net Worth per equity share of Re.1 each 21.47
Current Ratio1.72
Income and Profits
Gross Sales1,29,530.37
Net Sales (Excluding GST and Excise) 1,10,433.02
Profit/(Loss) before Tax 8,261.14
Tax 1,578.68
Profit/(Loss) after Tax 6,682.46
Profit/(Loss) for the Year 6,730.13
Earnings per share (in Rs.) 4.03
Dividend per share of Re.1 0.50
MESSAGE FROM THE Chairman
I feel pleased in presenting the Annual Report of the Company for Fiscal 2020. The Operational Revenue (net) stood at Rs.110,433 lakh and PBT at Rs.8,261 lakh. After considering the provision for tax of Rs.1,578 lakh, the profit from continuing operations was Rs.6,682 lakh whereas the total comprehensive income was Rs.6,730 lakh.
Message From The Managing Director
In the wake of the call given by our Hon’ble Prime Minister, Shri Narendra Modi for ATMANIRBHAR BHARAT ABHIYAAN, BEPL is fully committed to set-up the proposed ABS Expansion Project with State of the Art technology in a time bound manner.
Your Company has been able to withstand several odds and is presenting yet another year of improved financial results. In adverse circumstances, the stability and growth is best appreciated.
The key highlights of the Company’s performance based on the Standalone Balance Sheet as on 31st March, 2020 is reflected as under:
Net Worth: During the financial year under review, the Net Worth of the Company stood at ` 35,620.35 lakh, as compared to ` 29,890.26 lakh for the previous financial year, an increase of 19.17%.
The Return on Net Worth stood at 18.76 % as against 15.57% in FY 2018-19, an increase of 3.19 %.
Book Value of Shares: The Book value of the Equity shares increased from ` 18.02 in FY 2018-19 to ` 21.47 in FY 2019-20, an increase of ` 3.45
Current Ratio: As on 31st March, 2020 the current ratio was 1.72 as compared to 1.86 as of 31st March, 2019.
TOL/TON: The ratio of total liability to total net worth for FY 2019-20 was 0.83 as compared to 0.77 for FY 2018-19.
Zero Debt: The Company continues to enjoy the status of a “Zero Debt Company”.
Financing Pattern: There is no change in the financing pattern and the Company would be able to sustain its business operations through internal accruals.
Sales Credit Control: During the financial year under review, the debtor’s percentage to sales decreased from 15.50% in FY 2018-19 to 11.87% in FY 2019-20.
Debtors Turnover Ratio: During the financial year under review, the Debtors Turnover Ratio was 8.43 as compared to 6.45 in the previous fiscal.
Inventory Turnover Ratio: During the financial year under review, the Inventory Turnover Ratio was 5.79 as compared to 11.28 in FY 2018-19.
Operating Profit Margin (%): The Operating Profit Margin for FY 2019-20 stood at 7.48% as compared to 6.32% for FY 2018-19.
Net Profit Margin (%): The Net Profit Margin for FY 2019-20 stood at 6.05% as compared to 3.80% for FY 2018-19.
Research and Development Facilities:
The Company has received the recognition from the Department of Science and Industrial Research (DSIR), Government of India on 27th June, 2019 for its state-of-the-art Research and Development Centre (‘R&D Centre’) at Abu Road, Rajasthan.
The said certificate entitles the Company for a host of concessions including but not limited to customs/ central duty exemption on purchase of equipment, stores & spares, instruments etc. during the period of recognition and subject to relevant government policies in force from time to time.
The experts from Nippon A&L, Company’s Joint Venture Partner, are headquartered in India for extending their support in terms of additional manpower to be deployed, development of new recipe etc.
The R&D Centre has till date successfully developed 20 different Grades of ABS for the Automobile and the Home Appliances segment which were currently being imported along-with significant improvements in the properties of the existing material and various other colour developments.
The Company has now started reaping the benefits of its in-house R & D centre by way of new and improved products, leading to customer loyalty and satisfaction.
Further, there has been no change in the nature of business of the Company.
FUTURE EXPANSION:
ATMANIRBHAR BHARAT ABHIYAAN - Make In India. Addressing the nation on 12th May, 2020, Hon’ble Prime Minister Shri Narendra Modi announced a special economic package for an Aatmanirbhar or self-reliant India.
In his address to the nation, he outlined the following five pillars for building a self-reliant India:
1. Economy - which brings in quantum jump and not incremental change. The government’s goal is to make India a USD 5 Trillion economy by 2025;
2. Infrastructure - which will become India’s new identity. To achieve the target of a USD 5 Trillion economy, more than INR 100 lakh Crore will be invested in infrastructure development in India over the next five years;
3. Systems - based on 21st century technology driven arrangements;
4. Vibrant Demography - which will prove to be a competitive advantage for a self-reliant India; and
5. Demand - utilized to its full capacity.
Seeing the aggressive plan under ATMANIRBHAR BHARAT ABHIYAAN and further announcement by the Hon’ble Finance Minister to create land bank for Industrial Cluster up-gradation of common infrastructure facilities and connectivity, the Company is continuously thriving its best to identify the suitable Land parcel for future Green Field Port based Expansion.
Looking at the initiatives taken by the Government for self-reliant India, the Company strongly believes that in coming years, the demand of ABS shall grow exponentially and will outstrip the ABS supplies.
To meet the growing demand of ABS in India, the Company may even have to re-think to carry out the future expansion at its existing Plant located at Satnoor (Madhya Pradesh) and Abu Road (Rajasthan), if the availability of the suitable Land parcel at PORT based location is delayed.
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