BAID LEASING 2021-22 Annual Report Analysis

Thu, 31 Mar

BAID LEASING has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during the year 2021-22.

BAID LEASING Income Statement Analysis

• Interest income during the year fell 6.6% on a year-on-year (YoY) basis.
• Interest expenses were down by 18.5% YoY during the same period.
• Operating expenses declined by 7.5% YoY during the year.
• The company's net interest income (NII) increased by 3.2% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 16.0% in FY22 as against 15.8% in FY21.
• Other income declined by 83.1% YoY during the year.
• Net profit for the year increased by 17.5% YoY.
• Net profit margins during the year increased to 17.6% in FY22 from 14.0% in FY21.

BAID LEASING Income Statement – 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Interest Income	Rs m	535	499	-6.6%
Other Income	Rs m	6	1	-83.1%
Interest Expense	Rs m	241	196	-18.5%
Net Interest Income	Rs m	294	303	3.2%
Operating Expense	Rs m	195	180	-7.5%
Pre-provision Operating Profit	Rs m	106	124	17.6%
Provisions & Contingencies	Rs m	263	311	18.1%
Profit before tax	Rs m	103	122	18.1%
Tax	Rs m	28	34	19.8%
Profit after tax	Rs m	75	88	17.5%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	15.8	16.0
Net profit margin	%	14.0	17.6

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BAID LEASING Balance Sheet Analysis

• The company's deposits during FY22 stood at Rs 0 m as compared to Rs 0 m in FY21, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 0 m as compared to Rs 0 m during FY21, a rise of 0.0%.
• Cost of deposits for BAID LEASING rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments rose to Rs 1.9 bn during the year from Rs 1.9 bn in FY21.
• Borrowing stood at Rs 245 m, a fall of 44.3% as compared to previous year.
• Overall, the total assets and liabilities for FY22 stood at Rs 3.2 bn as against Rs 3.2 bn during FY21, thereby witnessing a rise of 0.4%.

BAID LEASING Balance Sheet – as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,376	1,458	6.0%
Advances	Rs m	0	0	0.0%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	0.0	0.0
Investments	Rs m	1,863	1,898	1.9%
Borrowings	Rs m	440	245	-44.3%
Total Assets	Rs m	3,165	3,178	0.4%

Current Valuations for BAID LEASING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.3, an improvement from the EPS of Rs 6.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 17.2, stands at 7.0 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.4 times, while the price to income ratio stands at 1.2 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Income per share (Unadj.)	Rs	44.5	41.6
Earnings per share (Unadj.)	Rs	6.2	7.3
Diluted earnings per share	Rs	0.6	0.7
Avg P/E ratio	Rs	7.1	7.0
Avg P/ABV ratio	Rs	0.2	1.4
Avg Market Cap	Rs	530	612
Dividends per share (Unadj.)	Rs	0.10	0.10

Ratio Analysis for BAID LEASING

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 0.0x during FY22, from 0.0x during FY21. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio decreased and stood at 0.17x during FY22, from 0.32x during FY21. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): BAID LEASING's capital adequacy ratio (CAR) was at 51.0% as on 31 March 2022 as compared to 47.4% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company improved and stood at 6.0% during FY22, from 5.4% during FY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at 2.77% during FY22, from 2.36% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company deteriorated and stood at 10.46% during FY22, from 11.08% during FY21. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. BAID LEASING's gross NPA ratio stood at 3.3% as of 31 March 2022 compared to 3.5% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of BAID LEASING was 1.0% in financial year 2022. This compared with 1.6% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Credit/Deposit Ratio	x	0.0	0.0
Debt to Equity Ratio	x	0.3	0.2
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	47.4	51.0
Return on Equity	%	5.4	6.0
Return on Assets	%	2.4	2.8
Return on Capital Employed	%	11.1	10.5
% of Gross NPAs	%	3.5	3.3
% of Net NPAs	%	1.6	1.0
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

To see how BAID LEASING has performed over the last 5 years, please visit here.

BAID LEASING Share Price Performance

Over the last one year, BAID LEASING share price has moved up from Rs 2.7 to Rs 17.2, registering a gain of Rs 14.5 or around 544.6%.

Overall, the S&P BSE SENSEX is up 16.8% over the year.

(To know more, you can check out historical annual results for BAID LEASING here and quarterly results for BAID LEASING here)