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BAJAJ AUTO 2021-22 Annual Report Analysis

Fri, 8 Jul

BAJAJ AUTO has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

BAJAJ AUTO Income Statement Analysis

• Operating income during the year rose 19.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.2% in FY22 as against 17.7% in FY21.
• Depreciation charges increased by 4.0% and finance costs increased by 30.0% YoY, respectively.
• Other income grew by 1.5% YoY.
• Net profit for the year grew by 22.8% YoY.
• Net profit margins during the year grew from 16.4% in FY21 to 16.9% in FY22.

BAJAJ AUTO Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	277,411	331,447	19.5%
Other income	Rs m	12,820	13,018	1.5%
Total Revenues	Rs m	290,231	344,465	18.7%
Gross profit	Rs m	49,191	60,488	23.0%
Depreciation	Rs m	2,594	2,698	4.0%
Interest	Rs m	67	87	30.0%
Profit before tax	Rs m	59,351	70,722	19.2%
Tax	Rs m	13,844	14,858	7.3%
Profit after tax	Rs m	45,507	55,863	22.8%
Gross profit margin	%	17.7	18.2
Effective tax rate	%	23.3	21.0
Net profit margin	%	16.4	16.9

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BAJAJ AUTO Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 47 billion as compared to Rs 56 billion in FY21, thereby witnessing an decrease of -16.9%.
• Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY21, a growth of 1.1%.
• Current assets fell 27% and stood at Rs 104 billion, while fixed assets rose 27% and stood at Rs 247 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 351 billion as against Rs 336 billion during FY21, thereby witnessing a growth of 4%.

BAJAJ AUTO Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	272,734	298,597	9.5
Current Liabilities	Rs m	56,435	46,885	-16.9
Long-term Debt	Rs m	1,215	1,228	1.1
Total Liabilities	Rs m	336,017	351,112	4.5
Current assets	Rs m	141,877	103,656	-26.9
Fixed Assets	Rs m	194,141	247,456	27.5
Total Assets	Rs m	336,017	351,112	4.5

BAJAJ AUTO Cash Flow Statement Analysis

• BAJAJ AUTO's cash flow from operating activities (CFO) during FY22 stood at Rs 42 billion, an improvement of 34.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -809 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -41 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 4 billion from the Rs 2 billion net cash flows seen during FY21.

BAJAJ AUTO Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	31,199	41,972	34.5%
Cash Flow from Investing Activities	Rs m	-28,684	-809	-
Cash Flow from Financing Activities	Rs m	-195	-40,563	-
Net Cash Flow	Rs m	2,312	4,171	80.4%

Current Valuations for BAJAJ AUTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 193.1, an improvement from the EPS of Rs 157.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,823.3, stands at 19.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 18.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	958.7	1,145.4
TTM Earnings per share	Rs	157.3	193.1
Diluted earnings per share	Rs	157.4	193.2
Price to Cash Flow	x	22.1	18.2
TTM P/E ratio	x	23.3	19.8
Price / Book Value ratio	x	3.4	3.6
Market Cap	Rs m	914,429	1,067,229
Dividends per share (Unadj.)	Rs	140.0	140.0

Ratio Analysis for BAJAJ AUTO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY22, from 2.5x during FY21. 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 817.6x during FY22, from 892.2x during FY21. 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 18.7% during FY22, from 16.7% during FY22. 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 23.6% during FY22, from 21.7% during FY21. 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 FY22, from 13.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.5	2.2
Debtors’ Days	Days	4	2
Interest coverage	x	892.2	817.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.6	15.9
Return on equity	%	16.7	18.7
Return on capital employed	%	21.7	23.6

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 4,076.4 to Rs 3,823.3, registering a loss of Rs 253.1 or around 6.2%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 27,791.1 (up 0.1%). Over the last one year it has moved up from 23,307.0 to 27,791.1, a gain of 4,484 points (up 19.2%).

Overall, the S&P BSE SENSEX is up 3.1% over the year.

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

Read: Latest Annual Report Analysis of BAJAJ AUTO