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BAJAJ ELECTRICALS 2018-19 Annual Report Analysis

Mon, 30 Sep

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 41.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.1% in FY19 as against 6.2% in FY18.
• Depreciation charges increased by 29.5% and finance costs increased by 99.8% YoY, respectively.
• Other income grew by 22.1% YoY.
• Net profit for the year grew by 83.6% YoY.
• Net profit margins during the year grew from 1.8% 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	47,074	66,794	41.9%
Other income	Rs m	532	650	22.1%
Total Revenues	Rs m	47,606	67,444	41.7%
Gross profit	Rs m	2,934	3,401	15.9%
Depreciation	Rs m	339	439	29.5%
Interest	Rs m	589	1,176	99.8%
Profit before tax	Rs m	2,538	2,435	-4.1%
Tax	Rs m	809	876	8.3%
Profit after tax	Rs m	836	1,536	83.6%
Gross profit margin	%	6.2	5.1
Effective tax rate	%	31.9	36.0
Net profit margin	%	1.8	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 1753.7%.
• Current assets rose 49% and stood at Rs 40 billion, while fixed assets rose 25% and stood at Rs 4 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 52 billion as against Rs 35 billion during FY18, thereby witnessing a growth of 49%.

BAJAJ ELECTRICALS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	9,363	10,559	12.8
Current Liabilities	Rs m	24,390	38,180	56.5
Long-term Debt	Rs m	115	2,126	1,753.7
Total Liabilities	Rs m	34,659	51,790	49.4
Current assets	Rs m	26,764	39,905	49.1
Fixed Assets	Rs m	3,222	4,022	24.9
Total Assets	Rs m	34,659	51,790	49.4

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 15.0, an improvement from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 395.2, stands at 27.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 19.9 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	461.3	652.3
TTM Earnings per share	Rs	8.2	15.0
Diluted earnings per share	Rs	8.3	15.3
Price to Cash Flow	x	31.5	19.9
TTM P/E ratio	x	28.0	27.6
Price / Book Value ratio	x	5.1	5.3
Market Cap	Rs m	40,321	39,792
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 5.3x 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 14.5% during FY19, from 8.9% 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 28.3% during FY19, from 23.6% 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 5.2% during FY19, from 4.1% 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	136	143
Interest coverage	x	5.3	3.1
Debt to equity ratio	x	0.0	0.2
Return on assets	%	4.1	5.2
Return on equity	%	8.9	14.5
Return on capital employed	%	23.6	28.3

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 500.0 to Rs 395.2, registering a loss of Rs 104.8 or around 21.0%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 26,009.5 (down 0.5%). Over the last one year it has moved up from 19,134.3 to 26,009.5, a gain of 6,875 points (up 35.9%).

Overall, the S&P BSE SENSEX is up 6.0% over the year.

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