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BAJAJ FINANCE 2017-18 Annual Report Analysis

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

BAJAJ FINANCE 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 FINANCE Income Statement Analysis

  • Operating income during the year rose 34.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 32.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 65.5% in FY18 as against 66.9% in FY17.
  • Depreciation charges and finance costs increased by 43.4% YoY and 21.8% YoY, respectively.
  • Other income declined by 6.3% YoY.
  • Net profit for the year grew by 45.6% YoY.
  • Net profit margins during the year grew from 18.4% in FY17 to 19.9% in FY18.

BAJAJ FINANCE Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 99,667 134,420 34.9%
Other income Rs m 255 239 -6.3%
Total Revenues Rs m 99,922 134,659 34.8%
Gross profit Rs m 66,668 88,087 32.1%
Depreciation Rs m 712 1,021 43.4%
Interest Rs m 38,037 46,343 21.8%
Profit before tax Rs m 28,174 40,962 45.4%
Tax Rs m 9,810 14,221 45.0%
Profit after tax Rs m 18,364 26,741 45.6%
Gross profit margin % 66.9 65.5
Effective tax rate % 34.8 34.7
Net profit margin % 18.4 19.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BAJAJ FINANCE Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 227 billion as compared to Rs 194 billion in FY17, thereby witnessing an increase of 17.0%.
  • Long-term debt stood at Rs 459 billion as compared to Rs 331 billion during FY17, a growth of 38.6%.
  • Current assets rose 25% and stood at Rs 378 billion, while fixed assets rose 29% and stood at Rs 5 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 868 billion as against Rs 637 billion during FY17, thereby witnessing a growth of 36%.

BAJAJ FINANCE Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 96,003 165,457 72.3
 
Current Liabilities Rs m 194,438 227,458 17.0
Long-term Debt Rs m 331,160 458,963 38.6
Total Liabilities Rs m 637,305 868,243 36.2
 
Current assets Rs m 301,451 377,806 25.3
Fixed Assets Rs m 3,627 4,670 28.7
Total Assets Rs m 637,305 868,243 36.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BAJAJ FINANCE Cash Flow Statement Analysis

  • BAJAJ FINANCE's cash flow from operating activities (CFO) during FY18 stood at Rs -205 billion, an improvement of 96.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 10 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 195 billion, an improvement of 56% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 131 million from the Rs -10 billion net cash flows seen during FY17.

BAJAJ FINANCE 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 -104,390 -204,614 -
Cash Flow from Investing Activities Rs m -30,468 9,712 -
Cash Flow from Financing Activities Rs m 125,134 195,033 55.9%
Net Cash Flow Rs m -9,723 131 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BAJAJ FINANCE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 232.5, an improvement from the EPS of Rs 167.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,835.0, stands at 53.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 55.0 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 911.3 1,168.6
TTM Earnings per share Rs 167.9 232.5
Diluted earnings per share Rs 34.1 49.6
Price to Cash Flow x 16.3 55.0
TTM P/E ratio x 10.8 53.0
Price / Book Value ratio x 3.4 1.1
Market Cap Rs m 310,064 1,527,271
Dividends per share (Unadj.) Rs 3.6 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for BAJAJ FINANCE

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.7x during FY18, from 1.6x 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 1.9x during FY18, from 1.7x 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 16.2% during FY18, from 19.1% 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 14.0% during FY18, from 15.5% 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 8.4% during FY18, from 8.8% 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 1.6 1.7
Debtors’ Days Days 940 932
Interest coverage x 1.7 1.9
Debt to equity ratio x 3.4 2.8
Return on assets % 8.8 8.4
Return on equity % 19.1 16.2
Return on capital employed % 15.5 14.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

BAJAJ FINANCE Share Price Performance

Over the last one year, BAJAJ FINANCE share price has moved up from Rs 1,692.0 to Rs 2,835.0, registering a gain of Rs 1,143.0 or around 67.6%.

Overall, the S&P BSE SENSEX is up 22.4% over the year.

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

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