BAJAJ AUTO 2023-24 Annual Report Analysis

Tue, 25 Jun

BAJAJ AUTO 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 AUTO Income Statement Analysis

• Operating income during the year rose 23.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.0% in FY24 as against 19.1% in FY23.
• Depreciation charges increased by 27.6% and finance costs increased by 52.8% YoY, respectively.
• Other income grew by 24.1% YoY.
• Net profit for the year grew by 27.2% YoY.
• Net profit margins during the year grew from 16.6% in FY23 to 17.2% in FY24.

BAJAJ AUTO Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	364,554	448,704	23.1%
Other income	Rs m	11,895	14,765	24.1%
Total Revenues	Rs m	376,449	463,469	23.1%
Gross profit	Rs m	69,778	89,887	28.8%
Depreciation	Rs m	2,859	3,648	27.6%
Interest	Rs m	395	604	52.8%
Profit before tax	Rs m	78,420	100,400	28.0%
Tax	Rs m	17,818	23,318	30.9%
Profit after tax	Rs m	60,602	77,082	27.2%
Gross profit margin	%	19.1	20.0
Effective tax rate	%	22.7	23.2
Net profit margin	%	16.6	17.2

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BAJAJ AUTO Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 91 billion as compared to Rs 53 billion in FY23, thereby witnessing an increase of 72.5%.
• Long-term debt stood at Rs 8 billion as compared to Rs 1 billion during FY23, a growth of 511.1%.
• Current assets rose 22% and stood at Rs 118 billion, while fixed assets rose 8% and stood at Rs 275 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 393 billion as against Rs 351 billion during FY23, thereby witnessing a growth of 12%.

BAJAJ AUTO Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	292,995	288,598	-1.5
Current Liabilities	Rs m	52,707	90,912	72.5
Long-term Debt	Rs m	1,242	7,592	511.1
Total Liabilities	Rs m	351,365	393,437	12.0
Current assets	Rs m	96,504	117,984	22.3
Fixed Assets	Rs m	254,861	275,453	8.1
Total Assets	Rs m	351,365	393,437	12.0

BAJAJ AUTO Cash Flow Statement Analysis

• BAJAJ AUTO's cash flow from operating activities (CFO) during FY24 stood at Rs 66 billion, an improvement of 24.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -62 billion, an improvement of 14% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs -7 billion net cash flows seen during FY23.

BAJAJ AUTO 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	52,774	65,582	24.3%
Cash Flow from Investing Activities	Rs m	11,995	-3,437	-
Cash Flow from Financing Activities	Rs m	-71,807	-61,674	-
Net Cash Flow	Rs m	-6,921	3,188	-

Current Valuations for BAJAJ AUTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 276.1, an improvement from the EPS of Rs 214.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 9,745.2, stands at 36.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.4 times, while the price to sales ratio stands at 6.1 times.
• The company's price to cash flow (P/CF) ratio stood at 22.8 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	1,288.4	1,607.2
TTM Earnings per share	Rs	214.2	276.1
Diluted earnings per share	Rs	217.1	276.1
Price to Cash Flow	x	17.1	22.8
TTM P/E ratio	x	19.6	36.6
Price / Book Value ratio	x	3.7	6.4
Market Cap	Rs m	1,074,028	1,839,090
Dividends per share (Unadj.)	Rs	140.0	80.0

Ratio Analysis for BAJAJ AUTO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.8x 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 167.3x during FY24, from 199.5x 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 improved and stood at 26.7% during FY24, from 20.7% 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 34.1% during FY24, from 26.8% 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 19.7% during FY24, from 17.4% 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	1.8	1.3
Debtors’ Days	Days	2	2
Interest coverage	x	199.5	167.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.4	19.7
Return on equity	%	20.7	26.7
Return on capital employed	%	26.8	34.1

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

BAJAJ AUTO Share Price Performance

Over the last one year, BAJAJ AUTO share price has moved up from Rs 4,619.2 to Rs 9,745.2, registering a gain of Rs 5,126.0 or around 111.0%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 57,497.0 (up 1.3%). Over the last one year it has moved up from 33,635.9 to 57,497.0, a gain of 23,861 points (up 70.9%).

Overall, the S&P BSE SENSEX is up 21.8% over the year.

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