BAJAJ CONSUMER CARE 2022-23 Annual Report Analysis

Tue, 18 Jul

BAJAJ CONSUMER CARE 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 CONSUMER CARE Income Statement Analysis

• Operating income during the year rose 9.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 20.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.4% in FY23 as against 19.8% in FY22.
• Depreciation charges increased by 68.1% and finance costs decreased by 3.5% YoY, respectively.
• Other income grew by 2.9% YoY.
• Net profit for the year declined by 17.9% YoY.
• Net profit margins during the year declined from 19.3% in FY22 to 14.5% in FY23.

BAJAJ CONSUMER CARE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,800	9,609	9.2%
Other income	Rs m	386	398	2.9%
Total Revenues	Rs m	9,186	10,006	8.9%
Gross profit	Rs m	1,739	1,385	-20.3%
Depreciation	Rs m	51	85	68.1%
Interest	Rs m	10	10	-3.5%
Profit before tax	Rs m	2,065	1,688	-18.3%
Tax	Rs m	368	296	-19.7%
Profit after tax	Rs m	1,696	1,392	-17.9%
Gross profit margin	%	19.8	14.4
Effective tax rate	%	17.8	17.5
Net profit margin	%	19.3	14.5

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BAJAJ CONSUMER CARE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 5.7%.
• Current assets fell 2% and stood at Rs 7 billion, while fixed assets rose 5% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 9 billion during FY22, thereby witnessing a fall of 1%.

BAJAJ CONSUMER CARE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,079	7,871	-2.6
Current Liabilities	Rs m	1,181	1,248	5.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,313	9,241	-0.8
Current assets	Rs m	7,470	7,313	-2.1
Fixed Assets	Rs m	1,843	1,928	4.6
Total Assets	Rs m	9,313	9,241	-0.8

BAJAJ CONSUMER CARE Cash Flow Statement Analysis

• BAJAJ CONSUMER CARE's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 646 million, an improvement of 9,249.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 24 million from the Rs 51 million net cash flows seen during FY22.

BAJAJ CONSUMER CARE 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	1,285	1,015	-21.1%
Cash Flow from Investing Activities	Rs m	7	646	9,249.6%
Cash Flow from Financing Activities	Rs m	-1,239	-1,626	-
Net Cash Flow	Rs m	51	24	-51.8%

Current Valuations for BAJAJ CONSUMER CARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.8, an decline from the EPS of Rs 11.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 205.3, stands at 21.0 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 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 15.2 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	59.6	67.4
TTM Earnings per share	Rs	11.5	9.8
Diluted earnings per share	Rs	11.9	9.8
Price to Cash Flow	x	13.3	15.2
TTM P/E ratio	x	13.7	21.0
Price / Book Value ratio	x	4.3	2.9
Market Cap	Rs m	34,855	22,438
Dividends per share (Unadj.)	Rs	8.0	5.0

Ratio Analysis for BAJAJ CONSUMER CARE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 5.9x during FY23, from 6.3x 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 174.3x during FY23, from 205.6x 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 declined and down at 17.7% during FY23, from 21.0% 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 declined and down at 21.6% during FY23, from 25.7% 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 15.2% during FY23, from 18.3% 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	6.3	5.9
Debtors’ Days	Days	79	116
Interest coverage	x	205.6	174.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.3	15.2
Return on equity	%	21.0	17.7
Return on capital employed	%	25.7	21.6

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 up from Rs 161.7 to Rs 205.3, registering a gain of Rs 43.7 or around 27.0%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 19,138.4 (down 0.2%). Over the last one year it has moved up from 15,085.3 to 19,138.4, a gain of 4,053 points (up 26.9%).

Overall, the S&P BSE SENSEX is up 25.2% over the year.

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