BAJAJ ELECTRICALS 2022-23 Annual Report Analysis

Tue, 18 Jul

BAJAJ ELECTRICALS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

BAJAJ ELECTRICALS Income Statement Analysis

• Operating income during the year rose 12.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.1% in FY23 as against 4.9% in FY22.
• Depreciation charges increased by 18.1% and finance costs decreased by 30.6% YoY, respectively.
• Other income grew by 47.9% YoY.
• Net profit for the year grew by 73.8% YoY.
• Net profit margins during the year grew from 2.6% in FY22 to 4.0% in FY23.

BAJAJ ELECTRICALS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	48,130	54,293	12.8%
Other income	Rs m	683	1,011	47.9%
Total Revenues	Rs m	48,814	55,303	13.3%
Gross profit	Rs m	2,369	3,325	40.3%
Depreciation	Rs m	692	817	18.1%
Interest	Rs m	697	484	-30.6%
Profit before tax	Rs m	1,663	3,034	82.5%
Tax	Rs m	419	872	108.3%
Profit after tax	Rs m	1,244	2,162	73.8%
Gross profit margin	%	4.9	6.1
Effective tax rate	%	25.2	28.8
Net profit margin	%	2.6	4.0

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BAJAJ ELECTRICALS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 26 billion as compared to Rs 22 billion in FY22, thereby witnessing an increase of 21.3%.
• Current assets rose 31% and stood at Rs 34 billion, while fixed assets fell 3% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 47 billion as against Rs 39 billion during FY22, thereby witnessing a growth of 20%.

BAJAJ ELECTRICALS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	17,196	18,885	9.8
Current Liabilities	Rs m	21,576	26,167	21.3
Long-term Debt	Rs m	118	0	-100.0
Total Liabilities	Rs m	39,101	46,772	19.6
Current assets	Rs m	25,939	34,103	31.5
Fixed Assets	Rs m	12,991	12,647	-2.6
Total Assets	Rs m	39,101	46,772	19.6

BAJAJ ELECTRICALS Cash Flow Statement Analysis

• BAJAJ ELECTRICALS's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -880 million, an improvement of 24.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion, an improvement of 82% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs 732 million net cash flows seen during FY22.

BAJAJ ELECTRICALS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	9,141	4,497	-50.8%
Cash Flow from Investing Activities	Rs m	-705	-880	-
Cash Flow from Financing Activities	Rs m	-7,712	-1,387	-
Net Cash Flow	Rs m	732	2,229	204.7%

Current Valuations for BAJAJ ELECTRICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.8, an improvement from the EPS of Rs 10.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,287.0, stands at 68.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.8 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 41.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	419.0	471.8
TTM Earnings per share	Rs	10.8	18.8
Diluted earnings per share	Rs	10.8	18.8
Price to Cash Flow	x	63.9	41.0
TTM P/E ratio	x	99.4	68.5
Price / Book Value ratio	x	8.4	6.5
Market Cap	Rs m	145,060	122,127
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for BAJAJ ELECTRICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.2x during FY22. 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 improved and stood at 7.3x during FY23, from 3.4x during FY22. 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 11.4% during FY23, from 7.2% during FY23. 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 18.6% during FY23, from 13.6% during FY22. 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 5.7% during FY23, from 5.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.2	1.3
Debtors’ Days	Days	864	995
Interest coverage	x	3.4	7.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.0	5.7
Return on equity	%	7.2	11.4
Return on capital employed	%	13.6	18.6

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 up from Rs 1,151.1 to Rs 1,287.0, registering a gain of Rs 136.0 or around 11.8%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 42,678.6 (down 0.4%). Over the last one year it has moved up from 38,815.6 to 42,678.6, a gain of 3,863 points (up 10.0%).

Overall, the S&P BSE SENSEX is up 25.2% over the year.

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