BAJAJ HOLDINGS & INVESTMENT 2022-23 Annual Report Analysis

Wed, 5 Jul

BAJAJ HOLDINGS & INVESTMENT has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during the year 2022-23.

BAJAJ HOLDINGS & INVESTMENT Income Statement Analysis

• Interest income during the year rose 8.0% on a year-on-year (YoY) basis.
• Interest expenses were up by 120.3% YoY during the same period.
• Operating expenses increased by 21.0% YoY during the year.
• The company's net interest income (NII) increased by 7.2% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 0.9% in FY23 as against 0.8% in FY22.
• Other income increased by 11.3% YoY during the year.
• Net profit for the year increased by 19.6% YoY.
• Net profit margins during the year increased to 1045.2% in FY23 from 943.9% in FY22.

BAJAJ HOLDINGS & INVESTMENT Income Statement – 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Interest Income	Rs m	4,297	4,641	8.0%
Other Income	Rs m	568	633	11.3%
Interest Expense	Rs m	32	69	120.3%
Net Interest Income	Rs m	4,265	4,572	7.2%
Operating Expense	Rs m	1,174	1,421	21.0%
Pre-provision Operating Profit	Rs m	3,659	3,784	3.4%
Provisions & Contingencies	Rs m	14	14	6.3%
Profit before tax	Rs m	42,259	50,115	18.6%
Tax	Rs m	1,003	653	-34.9%
Profit after tax	Rs m	40,557	48,505	19.6%
Minority Interest	Rs m	-699	-957	-36.8%
Net Interest Margin	%	0.8	0.9
Net profit margin	%	943.9	1045.2

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BAJAJ HOLDINGS & INVESTMENT Balance Sheet Analysis

• The company's deposits during FY23 stood at Rs 0 m as compared to Rs 0 m in FY22, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 0 m as compared to Rs 0 m during FY22, a rise of 0.0%.
• Cost of deposits for BAJAJ HOLDINGS & INVESTMENT rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments fell to Rs 527.7 bn during the year from Rs 531.3 bn in FY22.
• Borrowing stood at Rs 0 m, a growth of 0.0% as compared to previous year.
• Overall, the total assets and liabilities for FY23 stood at Rs 531.9 bn as against Rs 535.9 bn during FY22, thereby witnessing a fall of 0.7%.

BAJAJ HOLDINGS & INVESTMENT Balance Sheet – as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	428,423	441,828	3.1%
Advances	Rs m	0	0	0.0%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	0.0	0.0
Investments	Rs m	531,332	527,683	-0.7%
Borrowings	Rs m	0	0	0.0%
Total Assets	Rs m	535,876	531,881	-0.7%

Current Valuations for BAJAJ HOLDINGS & INVESTMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 435.8, an improvement from the EPS of Rs 364.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7,055.8, stands at 13.4 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.8 times, while the price to income ratio stands at 140.0 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Income per share (Unadj.)	Rs	38.6	41.7
Earnings per share (Unadj.)	Rs	364.4	435.8
Diluted earnings per share	Rs	364.4	435.8
Avg P/E ratio	Rs	12.1	13.4
Avg P/ABV ratio	Rs	1.2	1.8
Avg Market Cap	Rs	491,684	649,809
Dividends per share (Unadj.)	Rs	115.00	123.00

Ratio Analysis for BAJAJ HOLDINGS & INVESTMENT

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 0.0x during FY23, from 0.0x during FY22. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio decreased and stood at 0.00x during FY23, from 0.00x during FY22. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): BAJAJ HOLDINGS & INVESTMENT's capital adequacy ratio (CAR) was at 111.0% as on 31 March 2023 as compared to 111.0% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company improved and stood at 11.0% during FY23, from 9.5% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at 9.12% during FY23, from 7.57% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 11.53% during FY23, from 10.57% during FY22. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. BAJAJ HOLDINGS & INVESTMENT's gross NPA ratio stood at 0.0% as of 31 March 2023 compared to 0.0% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of BAJAJ HOLDINGS & INVESTMENT was 0.0% in financial year 2023. This compared with 0.0% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Credit/Deposit Ratio	x	0.0	0.0
Debt to Equity Ratio	x	0.0	0.0
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	111.0	111.0
Return on Equity	%	9.5	11.0
Return on Assets	%	7.6	9.1
Return on Capital Employed	%	10.6	11.5
% of Gross NPAs	%	0.0	0.0
% of Net NPAs	%	0.0	0.0
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

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

BAJAJ HOLDINGS & INVESTMENT Share Price Performance

Over the last one year, BAJAJ HOLDINGS & INVESTMENT share price has moved up from Rs 4,710.3 to Rs 7,055.8, registering a gain of Rs 2,345.6 or around 49.8%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

(To know more, you can check out historical annual results for BAJAJ HOLDINGS & INVESTMENT here and quarterly results for BAJAJ HOLDINGS & INVESTMENT here)