BAJAJ CORP 2017-18 Annual Report Analysis

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BAJAJ CORP 2017-18 Annual Report Analysis
Tue, 21 Aug

BAJAJ CORP 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 CORP Income Statement Analysis

  • Operating income during the year rose 4.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 3.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 30.6% in FY18 as against 33.1% in FY17.
  • Depreciation charges and finance costs increased by 38.7% YoY and 19.4% YoY, respectively.
  • Other income declined by 38.0% YoY.
  • Net profit for the year declined by 3.3% YoY.
  • Net profit margins during the year declined from 26.1% in FY17 to 24.7% in FY18.

BAJAJ CORP Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 7,969 8,285 4.0%
Other income Rs m 394 244 -38.0%
Total Revenues Rs m 8,363 8,529 2.0%
Gross profit Rs m 2,636 2,539 -3.7%
Depreciation Rs m 53 74 38.7%
Interest Rs m 10 12 19.4%
Profit before tax Rs m 2,966 2,698 -9.1%
Tax Rs m 600 587 -2.2%
Profit after tax Rs m 2,182 2,111 -3.3%
Gross profit margin % 33.1 30.6
Effective tax rate % 20.2 21.7
Net profit margin % 26.1 24.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BAJAJ CORP 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 CORP 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 -0.4
 
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 1,616 1,734 7.3
Total Assets Rs m 5,897 6,075 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BAJAJ CORP Cash Flow Statement Analysis

  • BAJAJ CORP'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 CORP 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 -153 368 -
Cash Flow from Financing Activities Rs m -2,000 -2,156 -
Net Cash Flow Rs m -33 13 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BAJAJ CORP

  • 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 414.0, stands at 28.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 12.9 times, while the price to sales ratio stands at 7.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 28.0 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 56.2
TTM Earnings per share Rs 14.8 14.3
Diluted earnings per share Rs 14.8 14.3
Price to Cash Flow x 27.3 28.0
TTM P/E ratio x 28.4 28.4
Price / Book Value ratio x 11.6 12.9
Market Cap Rs m 61,065 61,065
Dividends per share (Unadj.) Rs 11.5 12.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for BAJAJ CORP

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved 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 220.3x during FY18, from 289.0x 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 13 14
Interest coverage x 289.0 220.3
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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

BAJAJ CORP Share Price Performance

Over the last one year, BAJAJ CORP share price has moved up from Rs 398.3 to Rs 414.0, registering a gain of Rs 15.7 or around 3.9%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 12,518.2 (up 0.1%). Over the last one year it has moved up from 10,045.5 to 12,518.2, a gain of 2,473 points (up 24.6%).

Overall, the S&P BSE SENSEX is up 22.5% over the year.

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

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