BAJAJ FINSERV 2017-18 Annual Report Analysis

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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)

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