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BAJAJ STEEL 2023-24 Annual Report Analysis

Thu, 15 Aug

BAJAJ STEEL 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 STEEL Income Statement Analysis

• Operating income during the year rose 0.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 16.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.6% in FY24 as against 17.6% in FY23.
• Depreciation charges increased by 20.8% and finance costs decreased by 35.6% YoY, respectively.
• Other income grew by 8.6% YoY.
• Net profit for the year declined by 12.6% YoY.
• Net profit margins during the year declined from 12.3% in FY23 to 10.7% in FY24.

BAJAJ STEEL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,491	5,510	0.3%
Other income	Rs m	144	156	8.6%
Total Revenues	Rs m	5,635	5,666	0.5%
Gross profit	Rs m	966	805	-16.7%
Depreciation	Rs m	98	119	20.8%
Interest	Rs m	72	46	-35.6%
Profit before tax	Rs m	940	796	-15.3%
Tax	Rs m	265	206	-22.3%
Profit after tax	Rs m	675	590	-12.6%
Gross profit margin	%	17.6	14.6
Effective tax rate	%	28.2	25.9
Net profit margin	%	12.3	10.7

For Investors: Our Big Prediction

BAJAJ STEEL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 29.1%.
• Long-term debt stood at Rs 189 million as compared to Rs 90 million during FY23, a growth of 110.7%.
• Current assets rose 16% and stood at Rs 4 billion, while fixed assets rose 49% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 26%.

BAJAJ STEEL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,736	3,321	21.4
Current Liabilities	Rs m	1,570	2,028	29.1
Long-term Debt	Rs m	90	189	110.7
Total Liabilities	Rs m	4,480	5,642	25.9
Current assets	Rs m	3,097	3,585	15.8
Fixed Assets	Rs m	1,383	2,056	48.6
Total Assets	Rs m	4,480	5,642	25.9

BAJAJ STEEL Cash Flow Statement Analysis

• BAJAJ STEEL's cash flow from operating activities (CFO) during FY24 stood at Rs 553 million, an improvement of 108.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -664 million, an improvement of 27.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 190 million, an improvement of 187% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 80 million from the Rs -475 million net cash flows seen during FY23.

BAJAJ STEEL 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	265	553	108.7%
Cash Flow from Investing Activities	Rs m	-521	-664	-
Cash Flow from Financing Activities	Rs m	-219	190	-
Net Cash Flow	Rs m	-475	80	-

Current Valuations for BAJAJ STEEL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 113.5, an decline from the EPS of Rs 129.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,967.3, stands at 12.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 9.4 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	1,056.0	1,059.5
TTM Earnings per share	Rs	129.8	113.5
Diluted earnings per share	Rs	129.8	113.5
Price to Cash Flow	x	7.2	9.4
TTM P/E ratio	x	8.2	12.1
Price / Book Value ratio	x	1.6	2.0
Market Cap	Rs m	4,318	6,664
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for BAJAJ STEEL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY24, from 2.0x 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 improved and stood at 18.1x during FY24, from 14.0x 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 17.8% during FY24, from 24.7% 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 declined and down at 24.0% during FY24, from 35.8% 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 declined and down at 11.3% during FY24, from 16.7% 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	2.0	1.8
Debtors’ Days	Days	253	329
Interest coverage	x	14.0	18.1
Debt to equity ratio	x	0.0	0.1
Return on assets	%	16.7	11.3
Return on equity	%	24.7	17.8
Return on capital employed	%	35.8	24.0

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

BAJAJ STEEL Share Price Performance

Over the last one year, BAJAJ STEEL share price has moved up from Rs 949.6 to Rs 1,967.3, registering a gain of Rs 1,017.8 or around 107.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 71,539.5 (down 0.6%). Over the last one year it has moved up from 43,332.6 to 71,539.5, a gain of 28,207 points (up 65.1%).

Overall, the S&P BSE SENSEX is up 21.0% over the year.

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