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BAJAJ FINSERV 2021-22 Annual Report Analysis
Thu, 31 Mar

BAJAJ FINSERV 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.

BAJAJ FINSERV Income Statement Analysis

  • Operating income during the year rose 12.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 9.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 31.3% in FY22 as against 32.4% in FY21.
  • Depreciation charges increased by 12.9% and finance costs increased by 3.8% YoY, respectively.
  • Other income grew by 8791.9% YoY.
  • Net profit for the year grew by 12.8% YoY.
  • Net profit margins during the year declined from 12.2% in FY21 to 12.2% in FY22.

BAJAJ FINSERV Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 605,912 684,061 12.9%
Other income Rs m 4 329 8,791.9%
Total Revenues Rs m 605,916 684,390 13.0%
Gross profit Rs m 196,341 214,299 9.1%
Depreciation Rs m 4,985 5,627 12.9%
Interest Rs m 92,736 96,295 3.8%
Profit before tax Rs m 98,623 112,706 14.3%
Tax Rs m 24,950 29,571 18.5%
Profit after tax Rs m 73,674 83,135 12.8%
Gross profit margin % 32.4 31.3
Effective tax rate % 25.3 26.2
Net profit margin % 12.2 12.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

BAJAJ FINSERV Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 1,814 billion as compared to Rs 1,564 billion in FY21, thereby witnessing an increase of 15.9%.
  • Long-term debt stood at Rs 854 billion as compared to Rs 648 billion during FY21, a growth of 31.8%.
  • Current assets fell 25% and stood at Rs 251 billion, while fixed assets rose 25% and stood at Rs 3,077 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 3,328 billion as against Rs 2,792 billion during FY21, thereby witnessing a growth of 19%.

BAJAJ FINSERV Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 355,920 398,697 12.0
 
Current Liabilities Rs m 1,564,222 1,813,679 15.9
Long-term Debt Rs m 648,183 854,132 31.8
Total Liabilities Rs m 2,792,184 3,327,678 19.2
 
Current assets Rs m 334,760 250,717 -25.1
Fixed Assets Rs m 2,457,424 3,076,961 25.2
Total Assets Rs m 2,792,184 3,327,678 19.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BAJAJ FINSERV Cash Flow Statement Analysis

  • BAJAJ FINSERV's cash flow from operating activities (CFO) during FY22 stood at Rs -337 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs 14 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 323 billion, an improvement of 1,816% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 1 billion from the Rs 26 billion net cash flows seen during FY21.

BAJAJ FINSERV 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 45,474 -336,700 -
Cash Flow from Investing Activities Rs m -36,838 14,454 -
Cash Flow from Financing Activities Rs m 16,870 323,258 1,816.2%
Net Cash Flow Rs m 25,506 1,012 -96.0%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BAJAJ FINSERV

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 522.4, an improvement from the EPS of Rs 462.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,355.2, stands at 18.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.7 times, while the price to sales ratio stands at 3.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 25.4 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 3,807.4 4,298.5
TTM Earnings per share Rs 462.9 522.4
Diluted earnings per share Rs 46.3 52.2
Price to Cash Flow x 30.6 25.4
TTM P/E ratio x 32.7 18.9
Price / Book Value ratio x 3.3 5.7
Market Cap Rs m 1,159,475 2,257,129
Dividends per share (Unadj.) Rs 0.6 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BAJAJ FINSERV

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.1x during FY22, from 0.2x 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 improved and stood at 2.2x during FY22, from 2.1x 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 20.9% during FY22, from 20.7% 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 declined and down at 16.7% during FY22, from 19.1% 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 declined and down at 5.4% during FY22, from 6.0% 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 0.2 0.1
Debtors’ Days Days 2 2
Interest coverage x 2.1 2.2
Debt to equity ratio x 1.8 2.1
Return on assets % 6.0 5.4
Return on equity % 20.7 20.9
Return on capital employed % 19.1 16.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 down from Rs 1,533.0 to Rs 1,355.2, registering a loss of Rs 177.8 or around 11.6%.

Overall, the S&P BSE SENSEX is up 7.8% over the year.

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

Annual Report FAQs

What is the current share price of BAJAJ FINSERV?

BAJAJ FINSERV currently trades at Rs 1,643.1 per share. You can check out the latest share price performance of BAJAJ FINSERV here...

What was the revenue of BAJAJ FINSERV in FY22? How does it compare to earlier years?

The revenues of BAJAJ FINSERV stood at Rs 684,390 m in FY22, which was up 13.0% compared to Rs 605,916 m reported in FY21.

BAJAJ FINSERV's revenue has grown from Rs 328,627 m in FY18 to Rs 684,390 m in FY22.

Over the past 5 years, the revenue of BAJAJ FINSERV has grown at a CAGR of 20.1%.

What was the net profit of BAJAJ FINSERV in FY22? How does it compare to earlier years?

The net profit of BAJAJ FINSERV stood at Rs 83,135 m in FY22, which was up 12.8% compared to Rs 73,674 m reported in FY21.

This compares to a net profit of Rs 59,936 m in FY20 and a net profit of Rs 53,739 m in FY19.

Over the past 5 years, BAJAJ FINSERV net profit has grown at a CAGR of 18.8%.

What does the cash flow statement of BAJAJ FINSERV reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of BAJAJ FINSERV reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs -336,700 m as compared to Rs 45,474 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs 14,454 m as compared to Rs -36,838 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 323,258 m as compared to Rs 16,870 m in FY21.

Here's the cash flow statement of BAJAJ FINSERV for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations-195,802-270,764-233,69045,474-336,700
From Investments-9,215-69,034-99,480-36,83814,454
From Financial Activity195,902345,348344,79416,870323,258
Net Cashflow-9,1155,55011,62325,5061,012

What does the Key Ratio analysis of BAJAJ FINSERV reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of BAJAJ FINSERV reveals:

  • Operating profit margins witnessed a fall and stood at 31.3% in FY22 as against 32.4% in FY21.
  • Net profit margins declined from 12.2% in FY21 to 12.2% in FY22.
  • Debt to Equity ratio for FY22 stood at 2.1 as compared to 1.8 in FY21.

Here's the ratio/financial analysis of BAJAJ FINSERV for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)32.835.333.332.431.3
Net Profit Margin (%)12.712.610.912.212.2
Debt to Equity Ratio (x)2.61.91.91.82.1

Read: Latest Annual Report Analysis of BAJAJ FINSERV

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