X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
BAJAJ FINSERV 2017-18 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

BAJAJ FINSERV 2017-18 Annual Report Analysis
Tue, 21 Aug

BAJAJ FINSERV has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

BAJAJ FINSERV Income Statement Analysis

  • Operating income during the year rose 34.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 25.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 80.8% in FY18 as against 86.3% in FY17.
  • Depreciation charges and finance costs increased by 42.4% YoY and 22.5% YoY, respectively.
  • Other income declined by 1.8% YoY.
  • Net profit for the year grew by 21.2% YoY.
  • Net profit margins during the year declined from 22.4% in FY17 to 20.2% in FY18.

BAJAJ FINSERV Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 100,905 135,616 34.4%
Other income Rs m 6 5 -1.8%
Total Revenues Rs m 100,910 135,622 34.4%
Gross profit Rs m 87,129 109,645 25.8%
Depreciation Rs m 726 1,034 42.4%
Interest Rs m 37,163 45,514 22.5%
Profit before tax Rs m 49,245 63,102 28.1%
Tax Rs m 14,748 19,703 33.6%
Profit after tax Rs m 22,619 27,414 21.2%
Gross profit margin % 86.3 80.8
Effective tax rate % 29.9 31.2
Net profit margin % 22.4 20.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BAJAJ FINSERV Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 567 billion as compared to Rs 498 billion in FY17, thereby witnessing an increase of 13.9%.
  • Long-term debt stood at Rs 451 billion as compared to Rs 324 billion during FY17, a growth of 39.2%.
  • Current assets rose 17% and stood at Rs 677 billion, while fixed assets rose 14% and stood at Rs 11 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 1,591 billion as against Rs 1,286 billion during FY17, thereby witnessing a growth of 24%.

BAJAJ FINSERV Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 158,161 207,186 31.0
 
Current Liabilities Rs m 498,123 567,389 13.9
Long-term Debt Rs m 323,885 450,688 39.2
Total Liabilities Rs m 1,286,232 1,591,261 23.7
 
Current assets Rs m 576,499 676,765 17.4
Fixed Assets Rs m 9,537 10,896 14.2
Total Assets Rs m 1,286,232 1,591,261 23.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BAJAJ FINSERV Cash Flow Statement Analysis

  • BAJAJ FINSERV's cash flow from operating activities (CFO) during FY18 stood at Rs -194 billion, an improvement of 77.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 195 billion, an improvement of 56% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -9 billion from the Rs 17 billion net cash flows seen during FY17.

BAJAJ FINSERV Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m -109,222 -193,608 -
Cash Flow from Investing Activities Rs m 1,513 -10,249 -
Cash Flow from Financing Activities Rs m 125,128 194,757 55.6%
Net Cash Flow Rs m 17,418 -9,100 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BAJAJ FINSERV

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 172.3, an improvement from the EPS of Rs 142.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 7,044.0, stands at 32.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 5.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 25.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 634.1 852.2
TTM Earnings per share Rs 142.1 172.3
Diluted earnings per share Rs 142.2 172.3
Price to Cash Flow x 31.8 25.2
TTM P/E ratio x 32.8 32.8
Price / Book Value ratio x 3.0 3.7
Market Cap Rs m 1,120,912 1,120,841
Dividends per share (Unadj.) Rs 1.8 1.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for BAJAJ FINSERV

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during FY18, from 1.2x during FY17. 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 2.4x during FY18, from 2.3x during FY17. 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 declined and down at 13.2% during FY18, from 14.3% during FY18. 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 declined and down at 14.1% during FY18, from 15.5% during FY17. 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 4.6% during FY18, from 4.6% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.2 1.2
Debtors’ Days Days 45 32
Interest coverage x 2.3 2.4
Debt to equity ratio x 2.0 2.2
Return on assets % 4.6 4.6
Return on equity % 14.3 13.2
Return on capital employed % 15.5 14.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how BAJAJ FINSERV has performed over the last 5 years, please visit here.

BAJAJ FINSERV Share Price Performance

Over the last one year, BAJAJ FINSERV share price has moved up from Rs 5,216.3 to Rs 7,044.0, registering a gain of Rs 1,827.7 or around 35.0%.

Overall, the S&P BSE SENSEX is up 22.5% over the year.

(To know more, check out historical annual results for BAJAJ FINSERV and quarterly results for BAJAJ FINSERV)

Equitymaster requests your view! Post a comment on "BAJAJ FINSERV 2017-18 Annual Report Analysis". Click here!

  

Related Views on News

BAJAJ FINSERV Announces Quarterly Results (3QFY19); Net Profit Up 89.7% (Quarterly Result Update)

Jan 30, 2019 | Updated on Jan 30, 2019

For the quarter ended December 2018, BAJAJ FINSERV has posted a net profit of Rs 14 bn (up 89.7% YoY). Sales on the other hand came in at Rs 111 bn (up 45.3% YoY). Read on for a complete analysis of BAJAJ FINSERV's quarterly results.

BAJAJ FINSERV Announces Quarterly Results (2QFY19); Net Profit Up 82.6% (Quarterly Result Update)

Nov 9, 2018 | Updated on Nov 9, 2018

For the quarter ended September 2018, BAJAJ FINSERV has posted a net profit of Rs 12 bn (up 82.6% YoY). Sales on the other hand came in at Rs 97 bn (up 28.3% YoY). Read on for a complete analysis of BAJAJ FINSERV's quarterly results.

CreditAccess Grameen IPO: Should You Apply to this Interesting Microfinance Play? (IPO)

Aug 7, 2018

Should you apply to the IPO of CreditAccess Grameen Ltd?

HDFC AMC IPO: Do Valuations Leave Enough on Table for Investors? (IPO)

Jul 20, 2018

Should you subscribe to the IPO of HDFC AMC Ltd?

IndoStar Capital Finance IPO: Is This NBFC Worth Betting On? (IPO)

May 8, 2018

Should you apply for the IPO of IndoStar Capital Finance?

More Views on News

Most Popular

Stocks that Could Be Out of Reach Post Elections(The 5 Minute Wrapup)

Apr 9, 2019

It's a matter of time before the stocks catch the fancy of the markets and big investors.

3 Indian Stocks with Amazon-Like Potential(Profit Hunter)

Apr 10, 2019

We have identified 3 stocks with huge wealth building potential which meet our 'Click of a Button' criteria.

This Company is Making a Big Comeback and You Can Now Profit from Its Example(The 5 Minute Wrapup)

Apr 10, 2019

How Dell got its mojo back.

This is Why the Stock of Jubilant FoodWorks Went Up 1,160%(The 5 Minute Wrapup)

Apr 12, 2019

This critical business strategy has enabled companies to scale their operations faster.

Pocketing Massive Gains with HDFC And HDFC Bank(Profit Hunter)

Apr 12, 2019

Here's how one could have generated gains of Rs 59,250 in 10 days by trading HDFC and HDFC Bank with a capital of Rs 4 lakh.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK BAJAJ FINSERV

  • Track your investment in BAJAJ FINSERV with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

BAJAJ FINSERV 8-QTR ANALYSIS

COMPARE BAJAJ FINSERV WITH

MARKET STATS