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BAJAJ AUTO 2019-20 Annual Report Analysis
Tue, 31 Mar

BAJAJ AUTO has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

BAJAJ AUTO Income Statement Analysis

  • Operating income during the year fell 1.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 7.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.0% in FY20 as against 18.2% in FY19.
  • Depreciation charges decreased by 7.2% and finance costs decreased by 29.5% YoY, respectively.
  • Other income grew by 13.4% YoY.
  • Net profit for the year grew by 6.8% YoY.
  • Net profit margins during the year grew from 15.1% in FY19 to 16.3% in FY20.

BAJAJ AUTO Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 303,576 299,187 -1.4%
Other income Rs m 13,445 15,246 13.4%
Total Revenues Rs m 317,021 314,432 -0.8%
Gross profit Rs m 55,315 50,956 -7.9%
Depreciation Rs m 2,657 2,464 -7.2%
Interest Rs m 45 32 -29.5%
Profit before tax Rs m 66,058 63,706 -3.6%
Tax Rs m 20,280 14,802 -27.0%
Profit after tax Rs m 45,779 48,904 6.8%
Gross profit margin % 18.2 17.0
Effective tax rate % 30.7 23.2
Net profit margin % 15.1 16.3
* 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 FY20 down at Rs 43 billion as compared to Rs 49 billion in FY19, thereby witnessing an decrease of -12.7%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY19, a growth of 0.9%.
  • Current assets fell 6% and stood at Rs 66 billion, while fixed assets fell 9% and stood at Rs 199 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 265 billion as against Rs 288 billion during FY19, thereby witnessing a fall of 8%.

BAJAJ AUTO Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 232,338 216,621 -6.8
 
Current Liabilities Rs m 48,738 42,533 -12.7
Long-term Debt Rs m 1,245 1,256 0.9
Total Liabilities Rs m 288,344 265,100 -8.1
 
Current assets Rs m 70,732 66,160 -6.5
Fixed Assets Rs m 217,613 198,940 -8.6
Total Assets Rs m 288,344 265,100 -8.1
* 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 FY20 stood at Rs 39 billion, an improvement of 54.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs 16 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -62 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -6 billion from the Rs 1 billion net cash flows seen during FY19.

BAJAJ AUTO Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 24,869 38,504 54.8%
Cash Flow from Investing Activities Rs m -3,384 15,561 -
Cash Flow from Financing Activities Rs m -20,741 -62,465 -
Net Cash Flow Rs m 1,400 -6,302 -
* 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 169.0, an improvement from the EPS of Rs 158.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,024.9, stands at 12.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 1,049.1 1,033.9
TTM Earnings per share Rs 158.2 169.0
Diluted earnings per share Rs 158.2 169.0
Price to Cash Flow x 17.4 14.4
TTM P/E ratio x 18.4 12.0
Price / Book Value ratio x 3.5 3.4
Market Cap Rs m 815,870 739,043
Dividends per share (Unadj.) Rs 60.0 120.0
* 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 improved and stood at 1.6x during FY20, from 1.5x during FY19. 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 2,017.0x during FY20, from 1,475.5x during FY19. 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 22.6% during FY20, from 19.7% during FY20. 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 29.3% during FY20, from 28.3% during FY19. 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 18.5% during FY20, from 15.9% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 1.5 1.6
Debtors’ Days Days 3 2
Interest coverage x 1,475.5 2,017.0
Debt to equity ratio x 0.0 0.0
Return on assets % 15.9 18.5
Return on equity % 19.7 22.6
Return on capital employed % 28.3 29.3
* 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 down from Rs 2,915.1 to Rs 2,024.9, registering a loss of Rs 890.2 or around 30.5%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 10,746.2 (up 1.3%). Over the last one year it has moved down from 18,824.9 to 10,746.2, a loss of 8,079 points (down 42.9%).

Overall, the S&P BSE SENSEX is down 24.2% 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 8,622.0 per share. You can check out the latest share price performance of BAJAJ AUTO here...

What was the revenue of BAJAJ AUTO in FY20? How does it compare to earlier years?

The revenues of BAJAJ AUTO stood at Rs 314,432 m in FY20, which was down -0.8% compared to Rs 317,021 m reported in FY19.

BAJAJ AUTO's revenue has grown from Rs 222,744 m in FY16 to Rs 314,432 m in FY20.

Over the past 5 years, the revenue of BAJAJ AUTO has grown at a CAGR of 9.0%.

What was the net profit of BAJAJ AUTO in FY20? How does it compare to earlier years?

The net profit of BAJAJ AUTO stood at Rs 48,904 m in FY20, which was up 6.8% compared to Rs 45,779 m reported in FY19.

This compares to a net profit of Rs 39,313 m in FY18 and a net profit of Rs 38,249 m in FY17.

Over the past 5 years, BAJAJ AUTO net profit has grown at a CAGR of 6.2%.

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 increased in FY20 and stood at Rs 38,504 m as compared to Rs 24,869 m in FY19.
  • Cash flow from investments increased in FY20 and stood at Rs 15,561 m as compared to Rs -3,384 m in FY19.
  • Cash flow from financial activity decreased in FY20 and stood at Rs -62,465 m as compared to Rs -20,741 m in FY19.

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

(Rs m)FY16FY17FY18FY19FY20
From Operations36,89932,67443,27824,86938,504
From Investments-1,131-36,832-20,531-3,38415,561
From Financial Activity-33,841-1,901-18,853-20,741-62,465
Net Cashflow2,383-5,3244,8811,400-6,302

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 17.0% in FY20 as against 18.2% in FY19.
  • Net profit margins grew from 15.1% in FY19 to 16.3% in FY20.
  • Debt to Equity ratio for FY20 stood at 0.0 as compared to 0.0 in FY19.

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

 FY16FY17FY18FY19FY20
Operating Profit Margin (%)22.521.619.418.217.0
Net Profit Margin (%)18.018.715.815.116.3
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of BAJAJ AUTO

 

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