BAJAJ ELECTRICALS 2020-21 Annual Report Analysis

Wed, 31 Mar

BAJAJ ELECTRICALS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

BAJAJ ELECTRICALS Income Statement Analysis

• Operating income during the year fell 8.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 57.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.2% in FY21 as against 4.2% in FY20.
• Depreciation charges increased by 2.0% and finance costs decreased by 55.2% YoY, respectively.
• Other income grew by 50.0% YoY.
• Net profit for the year declined by 2641.5% YoY.
• Net profit margins during the year grew from 0.1% in FY20 to 4.1% in FY21.

BAJAJ ELECTRICALS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	49,872	45,846	-8.1%
Other income	Rs m	462	692	50.0%
Total Revenues	Rs m	50,334	46,538	-7.5%
Gross profit	Rs m	2,083	3,287	57.8%
Depreciation	Rs m	737	752	2.0%
Interest	Rs m	1,708	764	-55.2%
Profit before tax	Rs m	100	2,463	2,360.4%
Tax	Rs m	174	573	228.5%
Profit after tax	Rs m	-74	1,890	-2,641.5%
Gross profit margin	%	4.2	7.2
Effective tax rate	%	174.3	23.3
Net profit margin	%	-0.1	4.1

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

BAJAJ ELECTRICALS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 25 billion as compared to Rs 30 billion in FY20, thereby witnessing an decrease of -14.2%.
• Long-term debt down at Rs 256 million as compared to Rs 799 million during FY20, a fall of 68.0%.
• Current assets fell 10% and stood at Rs 30 billion, while fixed assets rose 2% and stood at Rs 12 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 42 billion as against Rs 45 billion during FY20, thereby witnessing a fall of 7%.

BAJAJ ELECTRICALS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	13,356	15,663	17.3
Current Liabilities	Rs m	29,611	25,415	-14.2
Long-term Debt	Rs m	799	256	-68.0
Total Liabilities	Rs m	45,221	42,152	-6.8
Current assets	Rs m	32,990	29,698	-10.0
Fixed Assets	Rs m	12,231	12,454	1.8
Total Assets	Rs m	45,221	42,152	-6.8

BAJAJ ELECTRICALS Cash Flow Statement Analysis

• BAJAJ ELECTRICALS's cash flow from operating activities (CFO) during FY21 stood at Rs 7 billion, an improvement of 5.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 170.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -560 million from the Rs 904 million net cash flows seen during FY20.

BAJAJ ELECTRICALS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	6,264	6,582	5.1%
Cash Flow from Investing Activities	Rs m	-407	-1,102	-
Cash Flow from Financing Activities	Rs m	-4,953	-6,040	-
Net Cash Flow	Rs m	904	-560	-

Current Valuations for BAJAJ ELECTRICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.5, an improvement from the EPS of Rs -0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 977.4, stands at 59.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.2 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 30.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	438.4	400.3
TTM Earnings per share	Rs	-0.7	16.5
Diluted earnings per share	Rs	-0.6	16.4
Price to Cash Flow	x	46.4	30.0
TTM P/E ratio	x	-413.5	59.4
Price / Book Value ratio	x	3.6	5.1
Market Cap	Rs m	48,454	79,242
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BAJAJ ELECTRICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 1.1x during FY20. 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 4.2x during FY21, from 1.1x during FY20. 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 12.1% during FY21, from -0.6% during FY21. 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 20.3% during FY21, from 12.8% during FY20. 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 6.3% during FY21, from 3.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.1	1.2
Debtors’ Days	Days	1,500	1,204
Interest coverage	x	1.1	4.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	3.6	6.3
Return on equity	%	-0.6	12.1
Return on capital employed	%	12.8	20.3

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 267.5 to Rs 977.4, registering a gain of Rs 710.0 or around 265.5%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 32,825.9 (up 0.8%). Over the last one year it has moved up from 19,363.0 to 32,825.9, a gain of 13,463 points (up 69.5%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of BAJAJ ELECTRICALS