BAJAJ CONSUMER CARE 2021-22 Annual Report Analysis

Fri, 8 Jul

BAJAJ CONSUMER CARE 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 CONSUMER CARE Income Statement Analysis

• Operating income during the year fell 4.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 27.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.8% in FY22 as against 26.2% in FY21.
• Depreciation charges decreased by 19.0% and finance costs decreased by 26.6% YoY, respectively.
• Other income grew by 4.7% YoY.
• Net profit for the year declined by 24.0% YoY.
• Net profit margins during the year declined from 24.2% in FY21 to 19.3% in FY22.

BAJAJ CONSUMER CARE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	9,218	8,800	-4.5%
Other income	Rs m	369	386	4.7%
Total Revenues	Rs m	9,587	9,186	-4.2%
Gross profit	Rs m	2,411	1,739	-27.9%
Depreciation	Rs m	63	51	-19.0%
Interest	Rs m	14	10	-26.6%
Profit before tax	Rs m	2,704	2,065	-23.6%
Tax	Rs m	472	368	-22.0%
Profit after tax	Rs m	2,231	1,696	-24.0%
Gross profit margin	%	26.2	19.8
Effective tax rate	%	17.5	17.8
Net profit margin	%	24.2	19.3

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BAJAJ CONSUMER CARE Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 1 billion as compared to Rs 1 billion in FY21, thereby witnessing an decrease of -12.7%.
• Current assets rose 4% and stood at Rs 7 billion, while fixed assets rose 4% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 9 billion as against Rs 9 billion during FY21, thereby witnessing a growth of 4%.

BAJAJ CONSUMER CARE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,562	8,079	6.8
Current Liabilities	Rs m	1,354	1,181	-12.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	8,936	9,313	4.2
Current assets	Rs m	7,155	7,470	4.4
Fixed Assets	Rs m	1,781	1,843	3.5
Total Assets	Rs m	8,936	9,313	4.2

BAJAJ CONSUMER CARE Cash Flow Statement Analysis

• BAJAJ CONSUMER CARE's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 7 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion, an improvement of 8% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 51 million from the Rs -34 million net cash flows seen during FY21.

BAJAJ CONSUMER CARE 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	2,371	1,285	-45.8%
Cash Flow from Investing Activities	Rs m	-1,063	7	-
Cash Flow from Financing Activities	Rs m	-1,342	-1,239	-
Net Cash Flow	Rs m	-34	51	-

Current Valuations for BAJAJ CONSUMER CARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.5, an decline from the EPS of Rs 15.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 142.8, stands at 12.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 20.0 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	62.5	59.6
TTM Earnings per share	Rs	15.1	11.5
Diluted earnings per share	Rs	15.1	11.5
Price to Cash Flow	x	16.7	20.0
TTM P/E ratio	x	17.2	12.4
Price / Book Value ratio	x	4.0	4.3
Market Cap	Rs m	30,536	34,855
Dividends per share (Unadj.)	Rs	10.0	8.0

Ratio Analysis for BAJAJ CONSUMER CARE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.3x during FY22, from 5.3x 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 improved and stood at 205.6x during FY22, from 197.6x 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 declined and down at 21.0% during FY22, from 29.5% 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 declined and down at 25.7% during FY22, from 35.9% 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 declined and down at 18.3% during FY22, from 25.1% 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	5.3	6.3
Debtors’ Days	Days	89	79
Interest coverage	x	197.6	205.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	25.1	18.3
Return on equity	%	29.5	21.0
Return on capital employed	%	35.9	25.7

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 297.5 to Rs 142.8, registering a loss of Rs 154.7 or around 52.0%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 14,868.3 (up 0.5%). Over the last one year it has moved up from 13,572.2 to 14,868.3, a gain of 1,296 points (up 9.5%).

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