BAJAJ AUTO 2022-23 Annual Report Analysis

Wed, 5 Jul

BAJAJ AUTO has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

BAJAJ AUTO Income Statement Analysis

• Operating income during the year rose 10.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.1% in FY23 as against 20.0% in FY22.
• Depreciation charges increased by 6.0% and finance costs increased by 356.2% YoY, respectively.
• Other income declined by 8.9% YoY.
• Net profit for the year declined by 1.7% YoY.
• Net profit margins during the year declined from 18.6% in FY22 to 16.6% in FY23.

BAJAJ AUTO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	331,447	364,554	10.0%
Other income	Rs m	13,063	11,895	-8.9%
Total Revenues	Rs m	344,510	376,449	9.3%
Gross profit	Rs m	66,239	69,778	5.3%
Depreciation	Rs m	2,698	2,859	6.0%
Interest	Rs m	87	395	356.2%
Profit before tax	Rs m	76,517	78,420	2.5%
Tax	Rs m	14,858	17,818	19.9%
Profit after tax	Rs m	61,659	60,602	-1.7%
Gross profit margin	%	20.0	19.1
Effective tax rate	%	19.4	22.7
Net profit margin	%	18.6	16.6

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BAJAJ AUTO Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 53 billion as compared to Rs 47 billion in FY22, thereby witnessing an increase of 12.4%.
• Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY22, a growth of 1.2%.
• Current assets fell 7% and stood at Rs 97 billion, while fixed assets rose 3% and stood at Rs 255 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 351 billion as against Rs 351 billion during FY22, thereby witnessing a growth of 0%.

BAJAJ AUTO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	298,274	292,995	-1.8
Current Liabilities	Rs m	46,885	52,707	12.4
Long-term Debt	Rs m	1,228	1,242	1.2
Total Liabilities	Rs m	351,112	351,365	0.1
Current assets	Rs m	103,656	96,504	-6.9
Fixed Assets	Rs m	247,456	254,861	3.0
Total Assets	Rs m	351,112	351,365	0.1

BAJAJ AUTO Cash Flow Statement Analysis

• BAJAJ AUTO's cash flow from operating activities (CFO) during FY23 stood at Rs 53 billion, an improvement of 25.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 12 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -72 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -7 billion from the Rs 4 billion net cash flows seen during FY22.

BAJAJ AUTO Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	41,972	52,774	25.7%
Cash Flow from Investing Activities	Rs m	-809	11,995	-
Cash Flow from Financing Activities	Rs m	-40,563	-71,807	-
Net Cash Flow	Rs m	4,171	-6,921	-

Current Valuations for BAJAJ AUTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 214.2, an improvement from the EPS of Rs 213.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,670.7, stands at 23.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 16.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	1,145.4	1,288.4
TTM Earnings per share	Rs	213.1	214.2
Diluted earnings per share	Rs	217.9	214.2
Price to Cash Flow	x	16.1	16.9
TTM P/E ratio	x	18.5	23.9
Price / Book Value ratio	x	3.6	3.7
Market Cap	Rs m	1,067,229	1,074,028
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 1.8x during FY23, from 2.2x during FY22. 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 199.5x during FY23, from 884.6x during FY22. 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 20.7% during FY23, from 20.7% during FY23. 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 26.8% during FY23, from 25.6% during FY22. 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 declined and down at 17.4% during FY23, from 17.6% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.2	1.8
Debtors’ Days	Days	2	2
Interest coverage	x	884.6	199.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.6	17.4
Return on equity	%	20.7	20.7
Return on capital employed	%	25.6	26.8

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 3,684.1 to Rs 4,670.7, registering a gain of Rs 986.7 or around 26.8%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 34,715.3 (up 0.4%). Over the last one year it has moved up from 26,661.9 to 34,715.3, a gain of 8,053 points (up 30.2%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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