BAJAJ CONSUMER CARE 2018-19 Annual Report Analysis

Sun, 31 Mar

BAJAJ CONSUMER CARE 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 CONSUMER CARE Income Statement Analysis

• Operating income during the year rose 11.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 29.0% in FY19 as against 30.1% in FY18.
• Depreciation charges decreased by 3.9% and finance costs decreased by 4.4% YoY, respectively.
• Other income declined by 17.2% YoY.
• Net profit for the year grew by 5.0% YoY.
• Net profit margins during the year declined from 25.6% in FY18 to 24.1% in FY19.

BAJAJ CONSUMER CARE Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	8,258	9,185	11.2%
Other income	Rs m	297	246	-17.2%
Total Revenues	Rs m	8,555	9,431	10.2%
Gross profit	Rs m	2,486	2,668	7.3%
Depreciation	Rs m	74	71	-3.9%
Interest	Rs m	12	12	-4.4%
Profit before tax	Rs m	2,698	2,831	5.0%
Tax	Rs m	587	616	4.9%
Profit after tax	Rs m	2,111	2,216	5.0%
Gross profit margin	%	30.1	29.0
Effective tax rate	%	21.7	21.7
Net profit margin	%	25.6	24.1

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BAJAJ CONSUMER CARE Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 1 billion as compared to Rs 1 billion in FY18, thereby witnessing an increase of 20.6%.
• Current assets fell 2% and stood at Rs 4 billion, while fixed assets rose 3% and stood at Rs 2 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 6 billion as against Rs 6 billion during FY18, thereby witnessing a fall of 0%.

BAJAJ CONSUMER CARE Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	4,925	4,645	-5.7
Current Liabilities	Rs m	1,143	1,378	20.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,075	6,054	-0.4
Current assets	Rs m	4,318	4,252	-1.5
Fixed Assets	Rs m	1,757	1,802	2.5
Total Assets	Rs m	6,075	6,054	-0.4

BAJAJ CONSUMER CARE Cash Flow Statement Analysis

• BAJAJ CONSUMER CARE's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 686 million, an improvement of 86.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 62 million from the Rs 13 million net cash flows seen during FY18.

BAJAJ CONSUMER CARE 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	1,801	1,764	-2.1%
Cash Flow from Investing Activities	Rs m	368	686	86.1%
Cash Flow from Financing Activities	Rs m	-2,155	-2,384	-
Net Cash Flow	Rs m	13	62	387.8%

Current Valuations for BAJAJ CONSUMER CARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.0, an improvement from the EPS of Rs 14.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 310.1, stands at 20.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.9 times, while the price to sales ratio stands at 5.0 times.
• The company's price to cash flow (P/CF) ratio stood at 26.4 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	56.0	62.3
TTM Earnings per share	Rs	14.3	15.0
Diluted earnings per share	Rs	14.3	15.0
Price to Cash Flow	x	31.9	26.4
TTM P/E ratio	x	32.2	20.2
Price / Book Value ratio	x	13.0	13.0
Market Cap	Rs m	63,978	60,313
Dividends per share (Unadj.)	Rs	12.0	14.0

Ratio Analysis for BAJAJ CONSUMER CARE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.1x during FY19, from 3.8x 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 improved and stood at 242.8x during FY19, from 221.2x 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 47.7% during FY19, from 42.9% 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 61.2% during FY19, from 55.0% 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 36.8% during FY19, from 34.9% 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	3.8	3.1
Debtors’ Days	Days	143	149
Interest coverage	x	221.2	242.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	34.9	36.8
Return on equity	%	42.9	47.7
Return on capital employed	%	55.0	61.2

To see how BAJAJ CONSUMER CARE has performed over the last 5 years, please visit here.

BAJAJ CONSUMER CARE Share Price Performance

Over the last one year, BAJAJ CONSUMER CARE share price has moved down from Rs 472.2 to Rs 310.1, registering a loss of Rs 162.1 or around 34.3%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,741.5 (down 0.1%). Over the last one year it has moved up from 10,290.1 to 11,741.5, a gain of 1,451 points (up 14.1%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Read: Latest Annual Report Analysis of BAJAJ CONSUMER CARE