Want To Invest In Bhartiya International Limited (NSE:BIL)? Here's How It Performed Lately

Today I will take a look at Bhartiya International Limited's (NSEI:BIL) most recent earnings update (31 March 2017) and compare these latest figures against its performance over the past few years, as well as how the rest of the luxury industry performed. As an investor, I find it beneficial to assess BIL’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time. View our latest analysis for Bhartiya International

Was BIL's recent earnings decline worse than the long-term trend and the industry?

For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend allows me to analyze many different companies on a more comparable basis, using the latest information. For Bhartiya International, its latest earnings (trailing twelve month) is IN₨212.76M, which, in comparison to the prior year's figure, has declined by -13.91%. Since these figures are relatively nearsighted, I’ve created an annualized five-year value for BIL's earnings, which stands at IN₨175.61M This means while earnings declined against the previous year, over a longer period of time, Bhartiya International's profits have been rising on average.

What's enabled this growth? Well, let’s take a look at whether it is merely because of an industry uplift, or if Bhartiya International has seen some company-specific growth. The hike in earnings seems to be bolstered by a robust top-line increase beating its growth rate of expenses. Though this resulted in a margin contraction, it has made Bhartiya International more profitable. Viewing growth from a sector-level, the IN luxury industry has been growing, albeit, at a unexciting single-digit rate of 3.79% in the past twelve months, and 9.38% over the past five. This means that whatever recent headwind the industry is enduring, it’s hitting Bhartiya International harder than its peers.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies are profitable, but have capricious earnings, can have many factors impacting its business. I suggest you continue to research Bhartiya International to get a more holistic view of the stock by looking at:

• 1. Financial Health: Is BIL’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
• 2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2017. This may not be consistent with full year annual report figures.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.