BAJAJ AUTO 2019-20 Annual Report Analysis

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BAJAJ AUTO 2019-20 Annual Report Analysis
Wed, 5 Aug

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 2.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.1% 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 5.8% YoY.
  • Net profit margins during the year grew from 15.5% in FY19 to 16.6% 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 55,393 54,172 -2.2%
Depreciation Rs m 2,657 2,464 -7.2%
Interest Rs m 45 32 -29.5%
Profit before tax Rs m 66,136 66,921 1.2%
Tax Rs m 20,280 14,802 -27.0%
Profit after tax Rs m 49,276 52,119 5.8%
Gross profit margin % 18.2 18.1
Effective tax rate % 30.7 22.1
Net profit margin % 15.5 16.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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%.
  • Current assets fell 6% and stood at Rs 66 billion, while fixed assets fell 3% and stood at Rs 18 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 0 0 0.0
Total Liabilities Rs m 288,344 265,100 -8.1
 
Current assets Rs m 70,732 66,160 -6.5
Fixed Assets Rs m 18,120 17,592 -2.9
Total Assets Rs m 288,344 265,100 -8.1
* 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 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: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BAJAJ AUTO

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 180.1, an improvement from the EPS of Rs 170.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,970.2, stands at 19.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 2.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.7 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 170.3 180.1
Diluted earnings per share Rs 170.3 180.1
Price to Cash Flow x 16.5 15.7
TTM P/E ratio x 19.5 19.5
Price / Book Value ratio x 3.5 3.4
Market Cap Rs m 859,487 859,487
Dividends per share (Unadj.) Rs 60.0 120.0
* 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 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 2,118.8x during FY20, from 1,477.2x 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 24.1% during FY20, from 21.2% 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 30.9% during FY20, from 30.0% 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 19.7% during FY20, from 17.1% 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 31 21
Interest coverage x 1,477.2 2,118.8
Debt to equity ratio x 0.0 0.0
Return on assets % 17.1 19.7
Return on equity % 21.2 24.1
Return on capital employed % 30.0 30.9
* 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 2,620.2 to Rs 2,970.2, registering a gain of Rs 350.1 or around 13.4%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 16,649.7 (up 1.5%). Over the last one year it has moved up from 15,438.4 to 16,649.7, a gain of 1,211 points (up 7.8%).

Overall, the S&P BSE SENSEX is up 2.7% over the year.

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

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