BAJAJ ELECTRICALS 2018-19 Annual Report Analysis

Sun, 31 Mar

BAJAJ ELECTRICALS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

BAJAJ ELECTRICALS Income Statement Analysis

• Operating income during the year rose 42.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 67.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.1% in FY19 as against 4.3% in FY18.
• Depreciation charges increased by 29.5% and finance costs increased by 99.8% YoY, respectively.
• Other income grew by 1.0% YoY.
• Net profit for the year grew by 65.6% YoY.
• Net profit margins during the year grew from 2.0% in FY18 to 2.3% in FY19.

BAJAJ ELECTRICALS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	46,985	66,794	42.2%
Other income	Rs m	646	653	1.0%
Total Revenues	Rs m	47,631	67,447	41.6%
Gross profit	Rs m	2,033	3,398	67.2%
Depreciation	Rs m	339	439	29.5%
Interest	Rs m	589	1,176	99.8%
Profit before tax	Rs m	1,750	2,435	39.1%
Tax	Rs m	808	875	8.3%
Profit after tax	Rs m	942	1,560	65.6%
Gross profit margin	%	4.3	5.1
Effective tax rate	%	46.2	36.0
Net profit margin	%	2.0	2.3

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BAJAJ ELECTRICALS Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 38 billion as compared to Rs 24 billion in FY18, thereby witnessing an increase of 56.5%.
• Long-term debt stood at Rs 2 billion as compared to Rs 115 million during FY18, a growth of 1753.6%.
• Current assets rose 49% and stood at Rs 40 billion, while fixed assets rose 58% and stood at Rs 11 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 51 billion as against Rs 34 billion during FY18, thereby witnessing a growth of 51%.

BAJAJ ELECTRICALS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	9,267	10,467	12.9
Current Liabilities	Rs m	24,390	38,180	56.5
Long-term Debt	Rs m	115	2,126	1,753.6
Total Liabilities	Rs m	33,923	51,214	51.0
Current assets	Rs m	26,764	39,905	49.1
Fixed Assets	Rs m	7,159	11,309	58.0
Total Assets	Rs m	33,923	51,214	51.0

BAJAJ ELECTRICALS Cash Flow Statement Analysis

• BAJAJ ELECTRICALS's cash flow from operating activities (CFO) during FY19 stood at Rs -6 billion, an improvement of 503.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 7 billion, an improvement of 1,023% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -106 million from the Rs -33 million net cash flows seen during FY18.

BAJAJ ELECTRICALS Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	-1,029	-6,205	-
Cash Flow from Investing Activities	Rs m	361	-1,040	-
Cash Flow from Financing Activities	Rs m	635	7,132	1,022.8%
Net Cash Flow	Rs m	-33	-106	-

Current Valuations for BAJAJ ELECTRICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.2, an improvement from the EPS of Rs 9.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 558.9, stands at 38.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.1 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 27.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	460.5	652.3
TTM Earnings per share	Rs	9.2	15.2
Diluted earnings per share	Rs	8.2	13.6
Price to Cash Flow	x	50.4	27.8
TTM P/E ratio	x	77.2	38.4
Price / Book Value ratio	x	5.1	5.3
Market Cap	Rs m	47,389	55,570
Dividends per share (Unadj.)	Rs	3.5	3.5

Ratio Analysis for BAJAJ ELECTRICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY19, from 1.1x during FY18. 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 3.1x during FY19, from 4.0x during FY18. 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 improved and stood at 14.9% during FY19, from 10.2% during FY19. 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 improved and stood at 28.7% during FY19, from 24.9% during FY18. 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 improved and stood at 5.3% during FY19, from 4.5% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	1.1	1.0
Debtors’ Days	Days	1,359	1,434
Interest coverage	x	4.0	3.1
Debt to equity ratio	x	0.0	0.2
Return on assets	%	4.5	5.3
Return on equity	%	10.2	14.9
Return on capital employed	%	24.9	28.7

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

BAJAJ ELECTRICALS Share Price Performance

Over the last one year, BAJAJ ELECTRICALS share price has moved down from Rs 561.8 to Rs 558.9, registering a loss of Rs 2.9 or around 0.5%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 23,856.7 (up 0.7%). Over the last one year it has moved up from 22,261.9 to 23,856.7, a gain of 1,595 points (up 7.2%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Read: Latest Annual Report Analysis of BAJAJ ELECTRICALS