BAJAJ FINSERV 2022-23 Annual Report Analysis

Sun, 9 Jul

BAJAJ FINSERV has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

BAJAJ FINSERV Income Statement Analysis

• Operating income during the year rose 20.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 39.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 36.4% in FY23 as against 31.3% in FY22.
• Depreciation charges increased by 20.4% and finance costs increased by 28.6% YoY, respectively.
• Other income declined by 97.7% YoY.
• Net profit for the year grew by 46.9% YoY.
• Net profit margins during the year grew from 12.2% in FY22 to 14.9% in FY23.

BAJAJ FINSERV Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	684,061	820,712	20.0%
Other income	Rs m	329	8	-97.7%
Total Revenues	Rs m	684,390	820,720	19.9%
Gross profit	Rs m	214,299	298,684	39.4%
Depreciation	Rs m	5,627	6,778	20.4%
Interest	Rs m	96,295	123,803	28.6%
Profit before tax	Rs m	112,706	168,111	49.2%
Tax	Rs m	29,571	46,016	55.6%
Profit after tax	Rs m	83,135	122,095	46.9%
Gross profit margin	%	31.3	36.4
Effective tax rate	%	26.2	27.4
Net profit margin	%	12.2	14.9

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BAJAJ FINSERV Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2,258 billion as compared to Rs 1,814 billion in FY22, thereby witnessing an increase of 24.5%.
• Long-term debt stood at Rs 1,016 billion as compared to Rs 854 billion during FY22, a growth of 19.0%.
• Current assets rose 24% and stood at Rs 312 billion, while fixed assets rose 21% and stood at Rs 3,733 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4,045 billion as against Rs 3,328 billion during FY22, thereby witnessing a growth of 22%.

BAJAJ FINSERV Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	398,697	459,365	15.2
Current Liabilities	Rs m	1,813,679	2,257,529	24.5
Long-term Debt	Rs m	854,132	1,016,224	19.0
Total Liabilities	Rs m	3,327,678	4,044,856	21.6
Current assets	Rs m	250,717	312,023	24.5
Fixed Assets	Rs m	3,076,961	3,732,834	21.3
Total Assets	Rs m	3,327,678	4,044,856	21.6

BAJAJ FINSERV Cash Flow Statement Analysis

• BAJAJ FINSERV's cash flow from operating activities (CFO) during FY23 stood at Rs -395 billion, an improvement of 17.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -139 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 510 billion, an improvement of 58% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -24 billion from the Rs 1 billion net cash flows seen during FY22.

BAJAJ FINSERV Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-336,700	-394,795	-
Cash Flow from Investing Activities	Rs m	14,454	-139,452	-
Cash Flow from Financing Activities	Rs m	323,258	510,161	57.8%
Net Cash Flow	Rs m	1,012	-24,087	-

Current Valuations for BAJAJ FINSERV

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 76.7, an decline from the EPS of Rs 522.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,614.5, stands at 21.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.6 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 18.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	4,298.5	515.3
TTM Earnings per share	Rs	522.4	76.7
Diluted earnings per share	Rs	52.2	76.7
Price to Cash Flow	x	30.6	18.1
TTM P/E ratio	x	32.7	21.1
Price / Book Value ratio	x	5.7	5.1
Market Cap	Rs m	2,257,129	2,328,193
Dividends per share (Unadj.)	Rs	0.8	0.8

Ratio Analysis for BAJAJ FINSERV

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.1x during FY23, from 0.1x during FY22. 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 2.4x during FY23, from 2.2x during FY22. 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 26.6% during FY23, from 20.9% during FY23. 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 improved and stood at 19.8% during FY23, from 16.7% during FY22. 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 improved and stood at 6.1% during FY23, from 5.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.1	0.1
Debtors’ Days	Days	2	2
Interest coverage	x	2.2	2.4
Debt to equity ratio	x	2.1	2.2
Return on assets	%	5.4	6.1
Return on equity	%	20.9	26.6
Return on capital employed	%	16.7	19.8

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 1,200.5 to Rs 1,614.5, registering a gain of Rs 414.0 or around 34.5%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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