BAJAJ FINSERV 2023-24 Annual Report Analysis

Tue, 2 Jul

BAJAJ FINSERV has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

BAJAJ FINSERV Income Statement Analysis

• Operating income during the year rose 34.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 37.0% in FY24 as against 36.4% in FY23.
• Depreciation charges increased by 32.8% and finance costs increased by 50.3% YoY, respectively.
• Other income grew by 41.6% YoY.
• Net profit for the year grew by 27.7% YoY.
• Net profit margins during the year declined from 14.9% in FY23 to 14.1% in FY24.

BAJAJ FINSERV Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	820,712	1,103,819	34.5%
Other income	Rs m	8	11	41.6%
Total Revenues	Rs m	820,720	1,103,830	34.5%
Gross profit	Rs m	298,684	408,806	36.9%
Depreciation	Rs m	6,778	9,001	32.8%
Interest	Rs m	123,803	186,065	50.3%
Profit before tax	Rs m	168,111	213,750	27.1%
Tax	Rs m	46,016	57,797	25.6%
Profit after tax	Rs m	122,095	155,954	27.7%
Gross profit margin	%	36.4	37.0
Effective tax rate	%	27.4	27.0
Net profit margin	%	14.9	14.1

Don't Miss: Key Information for Long-term Investors

BAJAJ FINSERV Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3,041 billion as compared to Rs 2,258 billion in FY23, thereby witnessing an increase of 34.7%.
• Long-term debt stood at Rs 1,290 billion as compared to Rs 1,016 billion during FY23, a growth of 27.0%.
• Current assets rose 43% and stood at Rs 446 billion, while fixed assets rose 32% and stood at Rs 4,923 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5,369 billion as against Rs 4,045 billion during FY23, thereby witnessing a growth of 33%.

BAJAJ FINSERV Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	459,365	597,156	30.0
Current Liabilities	Rs m	2,257,529	3,040,791	34.7
Long-term Debt	Rs m	1,016,224	1,290,135	27.0
Total Liabilities	Rs m	4,044,856	5,369,015	32.7
Current assets	Rs m	312,023	446,315	43.0
Fixed Assets	Rs m	3,732,834	4,922,700	31.9
Total Assets	Rs m	4,044,856	5,369,015	32.7

BAJAJ FINSERV Cash Flow Statement Analysis

• BAJAJ FINSERV's cash flow from operating activities (CFO) during FY24 stood at Rs -687 billion, an improvement of 73.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -110 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 827 billion, an improvement of 62% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 31 billion from the Rs -24 billion net cash flows seen during FY23.

BAJAJ FINSERV Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-394,795	-686,742	-
Cash Flow from Investing Activities	Rs m	-139,452	-109,597	-
Cash Flow from Financing Activities	Rs m	510,161	827,087	62.1%
Net Cash Flow	Rs m	-24,087	30,748	-

Current Valuations for BAJAJ FINSERV

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 97.8, an improvement from the EPS of Rs 76.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,574.2, stands at 16.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 14.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	515.3	692.4
TTM Earnings per share	Rs	76.7	97.8
Diluted earnings per share	Rs	76.5	97.7
Price to Cash Flow	x	15.7	14.5
TTM P/E ratio	x	16.6	16.1
Price / Book Value ratio	x	5.1	4.0
Market Cap	Rs m	2,328,193	2,397,450
Dividends per share (Unadj.)	Rs	0.8	1.0

Ratio Analysis for BAJAJ FINSERV

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.1x during FY24, from 0.1x during FY23. 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 2.1x during FY24, from 2.4x during FY23. 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 26.1% during FY24, from 26.6% during FY24. 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 21.2% during FY24, from 19.8% during FY23. 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 6.4% during FY24, from 6.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	0.1	0.1
Debtors’ Days	Days	2	2
Interest coverage	x	2.4	2.1
Debt to equity ratio	x	2.2	2.2
Return on assets	%	6.1	6.4
Return on equity	%	26.6	26.1
Return on capital employed	%	19.8	21.2

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

BAJAJ FINSERV Share Price Performance

Over the last one year, BAJAJ FINSERV share price has moved up from Rs 1,527.4 to Rs 1,574.2, registering a gain of Rs 46.9 or around 3.1%.

Overall, the S&P BSE SENSEX is up 24.5% over the year.

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