BAJAJ AUTO 2018-19 Annual Report Analysis

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BAJAJ AUTO 2018-19 Annual Report Analysis
Tue, 3 Sep

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 19.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 4.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.6% in FY19 as against 20.3% in FY18.
  • Depreciation charges decreased by 15.6% and finance costs increased by 242.0% YoY, respectively.
  • Other income grew by 34.3% YoY.
  • Net profit for the year grew by 16.8% YoY.
  • Net profit margins during the year declined from 16.0% in FY18 to 15.5% in FY19.

BAJAJ AUTO Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 252,189 302,500 19.9%
Other income Rs m 11,583 15,550 34.3%
Total Revenues Rs m 263,772 318,050 20.6%
Gross profit Rs m 51,233 53,287 4.0%
Depreciation Rs m 3,148 2,657 -15.6%
Interest Rs m 13 45 242.0%
Profit before tax Rs m 59,654 66,136 10.9%
Tax Rs m 17,145 20,280 18.3%
Profit after tax Rs m 42,189 49,276 16.8%
Gross profit margin % 20.3 17.6
Effective tax rate % 28.7 30.7
Net profit margin % 16.0 15.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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%.
  • Current assets fell 24% and stood at Rs 71 billion, while fixed assets fell 4% and stood at Rs 18 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 0 0 0.0
Total Liabilities Rs m 251,410 288,344 14.7
 
Current assets Rs m 92,508 70,732 -23.5
Fixed Assets Rs m 18,895 18,120 -4.1
Total Assets Rs m 251,410 288,344 14.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BAJAJ AUTO

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 170.3, an improvement from the EPS of Rs 145.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,778.7, stands at 17.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 2.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.5 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 871.5 1,045.4
TTM Earnings per share Rs 145.8 170.3
Diluted earnings per share Rs 145.8 170.3
Price to Cash Flow x 17.7 15.5
TTM P/E ratio x 17.6 17.6
Price / Book Value ratio x 4.4 3.5
Market Cap Rs m 804,058 804,058
Dividends per share (Unadj.) Rs 60.0 60.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 1,477.2x during FY19, from 4,554.7x 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 21.2% during FY19, from 20.7% 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 30.0% during FY19, from 29.1% 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 17.1% during FY19, from 16.8% 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 22 31
Interest coverage x 4,554.7 1,477.2
Debt to equity ratio x 0.0 0.0
Return on assets % 16.8 17.1
Return on equity % 20.7 21.2
Return on capital employed % 29.1 30.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 2,765.2 to Rs 2,778.7, registering a gain of Rs 13.5 or around 0.5%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 15,611.7 (down 1.0%). Over the last one year it has moved down from 24,505.3 to 15,611.7, a loss of 8,894 points (down 36.3%).

Overall, the S&P BSE SENSEX is down 5.0% over the year.

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

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