BAJAJ CORP 2017-18 Annual Report Analysis

Sat, 31 Mar

BAJAJ CONSUMER CARE has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

BAJAJ CONSUMER CARE Income Statement Analysis

• Operating income during the year rose 3.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 30.1% in FY18 as against 30.4% in FY17.
• Depreciation charges increased by 38.7% and finance costs increased by 18.6% YoY, respectively.
• Other income declined by 29.7% YoY.
• Net profit for the year declined by 3.3% YoY.
• Net profit margins during the year declined from 27.4% in FY17 to 25.6% in FY18.

BAJAJ CONSUMER CARE Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	7,962	8,258	3.7%
Other income	Rs m	423	297	-29.7%
Total Revenues	Rs m	8,385	8,555	2.0%
Gross profit	Rs m	2,423	2,486	2.6%
Depreciation	Rs m	53	74	38.7%
Interest	Rs m	10	12	18.6%
Profit before tax	Rs m	2,782	2,698	-3.1%
Tax	Rs m	600	587	-2.2%
Profit after tax	Rs m	2,182	2,111	-3.3%
Gross profit margin	%	30.4	30.1
Effective tax rate	%	21.6	21.7
Net profit margin	%	27.4	25.6

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BAJAJ CONSUMER CARE Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 1 billion as compared to Rs 947 million in FY17, thereby witnessing an increase of 20.7%.
• Current assets rose 1% and stood at Rs 4 billion, while fixed assets rose 7% and stood at Rs 2 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 6 billion as against Rs 6 billion during FY17, thereby witnessing a growth of 3%.

BAJAJ CONSUMER CARE Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	4,942	4,925	-0.3
Current Liabilities	Rs m	947	1,143	20.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	5,897	6,075	3.0
Current assets	Rs m	4,259	4,318	1.4
Fixed Assets	Rs m	1,638	1,757	7.3
Total Assets	Rs m	5,897	6,075	3.0

BAJAJ CONSUMER CARE Cash Flow Statement Analysis

• BAJAJ CONSUMER CARE's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 368 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 13 million from the Rs -33 million net cash flows seen during FY17.

BAJAJ CONSUMER CARE Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	2,120	1,801	-15.0%
Cash Flow from Investing Activities	Rs m	-152	368	-
Cash Flow from Financing Activities	Rs m	-2,000	-2,155	-
Net Cash Flow	Rs m	-33	13	-

Current Valuations for BAJAJ CONSUMER CARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.3, an decline from the EPS of Rs 14.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 472.2, stands at 32.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.1 times, while the price to sales ratio stands at 8.4 times.
• The company's price to cash flow (P/CF) ratio stood at 29.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	54.0	56.0
TTM Earnings per share	Rs	14.8	14.3
Diluted earnings per share	Rs	14.8	14.3
Price to Cash Flow	x	26.0	29.3
TTM P/E ratio	x	26.3	32.2
Price / Book Value ratio	x	11.6	13.0
Market Cap	Rs m	57,400	63,978
Dividends per share (Unadj.)	Rs	11.5	12.0

Ratio Analysis for BAJAJ CONSUMER CARE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.8x during FY18, from 4.5x during FY17. 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 221.2x during FY18, from 270.4x during FY17. 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 42.9% during FY18, from 44.2% during FY18. 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 55.0% during FY18, from 56.5% during FY17. 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 34.9% during FY18, from 37.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	4.5	3.8
Debtors’ Days	Days	126	143
Interest coverage	x	270.4	221.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	37.2	34.9
Return on equity	%	44.2	42.9
Return on capital employed	%	56.5	55.0

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 394.6 to Rs 472.2, registering a gain of Rs 77.6 or around 19.7%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 10,290.1 (down 0.4%). Over the last one year it has moved up from 9,270.3 to 10,290.1, a gain of 1,020 points (up 11.0%).

Overall, the S&P BSE SENSEX is up 12.1% 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