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BAJAJ AUTO 2018-19 Annual Report Analysis
Sun, 31 Mar

BAJAJ AUTO has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

BAJAJ AUTO Income Statement Analysis

  • Operating income during the year rose 22.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 15.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.2% in FY19 as against 19.4% in FY18.
  • Depreciation charges decreased by 15.6% and finance costs increased by 242.0% YoY, respectively.
  • Other income grew by 16.1% YoY.
  • Net profit for the year grew by 16.4% YoY.
  • Net profit margins during the year declined from 15.8% in FY18 to 15.1% in FY19.

BAJAJ AUTO Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 248,206 303,576 22.3%
Other income Rs m 11,583 13,445 16.1%
Total Revenues Rs m 259,789 317,021 22.0%
Gross profit Rs m 48,036 55,315 15.2%
Depreciation Rs m 3,148 2,657 -15.6%
Interest Rs m 13 45 242.0%
Profit before tax Rs m 56,458 66,058 17.0%
Tax Rs m 17,145 20,280 18.3%
Profit after tax Rs m 39,313 45,779 16.4%
Gross profit margin % 19.4 18.2
Effective tax rate % 30.4 30.7
Net profit margin % 15.8 15.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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BAJAJ AUTO Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 49 billion as compared to Rs 41 billion in FY18, thereby witnessing an increase of 18.5%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY18, a growth of 3.1%.
  • Current assets fell 24% and stood at Rs 71 billion, while fixed assets rose 37% and stood at Rs 218 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 288 billion as against Rs 251 billion during FY18, thereby witnessing a growth of 15%.

BAJAJ AUTO Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 204,252 232,338 13.8
 
Current Liabilities Rs m 41,114 48,738 18.5
Long-term Debt Rs m 1,208 1,245 3.1
Total Liabilities Rs m 251,410 288,344 14.7
 
Current assets Rs m 92,508 70,732 -23.5
Fixed Assets Rs m 158,902 217,613 36.9
Total Assets Rs m 251,410 288,344 14.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BAJAJ AUTO Cash Flow Statement Analysis

  • BAJAJ AUTO's cash flow from operating activities (CFO) during FY19 stood at Rs 25 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -21 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 1 billion from the Rs 5 billion net cash flows seen during FY18.

BAJAJ AUTO Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 43,278 24,869 -42.5%
Cash Flow from Investing Activities Rs m -20,531 -3,384 -
Cash Flow from Financing Activities Rs m -18,853 -20,741 -
Net Cash Flow Rs m 4,881 1,400 -71.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BAJAJ AUTO

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 158.2, an improvement from the EPS of Rs 135.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,915.1, stands at 18.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 2.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 857.7 1,049.1
TTM Earnings per share Rs 135.9 158.2
Diluted earnings per share Rs 135.9 158.2
Price to Cash Flow x 18.7 16.8
TTM P/E ratio x 20.2 18.4
Price / Book Value ratio x 4.4 3.5
Market Cap Rs m 893,218 815,870
Dividends per share (Unadj.) Rs 60.0 60.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BAJAJ AUTO

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY19, from 2.3x during FY18. 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 1,475.5x during FY19, from 4,310.8x during FY18. 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 19.7% during FY19, from 19.2% during FY19. 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 28.3% during FY19, from 27.5% during FY18. 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 15.9% during FY19, from 15.6% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 2.3 1.5
Debtors’ Days Days 2 3
Interest coverage x 4,310.8 1,475.5
Debt to equity ratio x 0.0 0.0
Return on assets % 15.6 15.9
Return on equity % 19.2 19.7
Return on capital employed % 27.5 28.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

BAJAJ AUTO Share Price Performance

Over the last one year, BAJAJ AUTO share price has moved up from Rs 2,748.9 to Rs 2,915.1, registering a gain of Rs 166.2 or around 6.0%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 18,824.9 (up 1.2%). Over the last one year it has moved down from 24,057.3 to 18,824.9, a loss of 5,232 points (down 21.7%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of BAJAJ AUTO?

BAJAJ AUTO currently trades at Rs 8,660.1 per share. You can check out the latest share price performance of BAJAJ AUTO here...

What was the revenue of BAJAJ AUTO in FY19? How does it compare to earlier years?

The revenues of BAJAJ AUTO stood at Rs 317,021 m in FY19, which was up 22.0% compared to Rs 259,789 m reported in FY18.

BAJAJ AUTO's revenue has grown from Rs 212,934 m in FY15 to Rs 317,021 m in FY19.

Over the past 5 years, the revenue of BAJAJ AUTO has grown at a CAGR of 10.5%.

What was the net profit of BAJAJ AUTO in FY19? How does it compare to earlier years?

The net profit of BAJAJ AUTO stood at Rs 45,779 m in FY19, which was up 16.4% compared to Rs 39,313 m reported in FY18.

This compares to a net profit of Rs 38,249 m in FY17 and a net profit of Rs 38,398 m in FY16.

Over the past 5 years, BAJAJ AUTO net profit has grown at a CAGR of 13.0%.

What does the cash flow statement of BAJAJ AUTO 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 AUTO reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 24,869 m as compared to Rs 43,278 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs -3,384 m as compared to Rs -20,531 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -20,741 m as compared to Rs -18,853 m in FY18.

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

(Rs m)FY15FY16FY17FY18FY19
From Operations21,13836,89932,67443,27824,869
From Investments-4,140-1,131-36,832-20,531-3,384
From Financial Activity-16,442-33,841-1,901-18,853-20,741
Net Cashflow9002,383-5,3244,8811,400

What does the Key Ratio analysis of BAJAJ AUTO 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 AUTO reveals:

  • Operating profit margins witnessed a fall and stood at 18.2% in FY19 as against 19.4% in FY18.
  • Net profit margins declined from 15.8% in FY18 to 15.1% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

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

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)18.222.521.619.418.2
Net Profit Margin (%)13.618.018.715.815.1
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of BAJAJ AUTO

 

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