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Please refer to important disclosures at the end of this report 1
Y/E March (` cr) 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy)Net sales 783 1114 (29.7) 666 17.6EBITDA 20 13 53.1 35 (41.6)
EBITDA Margin (%) 2.6 1.2 140bp 5.2 (262)bp
Adjusted PAT 1 1 4.8 12 (94.5)Source: Company, Angel Research
Bajaj Electricals Ltd (BEL) reported a poor set of numbers for 1QFY2014, mainly
at the operating level. Its top-line reported a decent growth of 17.6% yoy to
`783cr, in line with our expectation of `764cr. The EBITDA stood at `20cr which
was lower by 41.6% yoy while margins at 2.6% were lower by 262bp yoy. Overallthe EBIT margin of the company dipped by 265bp yoy mainly on account of cost
overruns in delayed projects in the E&P segment which reported an EBIT loss of
`26cr as compared to `7cr in 1QFY2013. Net profit, on the back of sluggish
operating performance, plunged by 94.5% yoy to `0.66cr.
Increased ad spends and premium segment launches on an uptrend: BEL haselaborated its ad spends by almost 50% to `75cr in FY2014E (from `38cr in
FY2013) celebrating its 75th year, thereby increasing its visibility substantially.
This in result is expected to create consumer pull, thereby enhancing the top-line
of the company. Moreover, following the success met in in induction cookers
(sales rise from `60cr FY2011 to `150cr in FY2013), BEL has launched a fewmodels in the premium ceiling fan segment and air fryers in FY2013 and is
looking forward to enter water purification products segment.
Outlook and valuation:Amidst a poor performance for the quarter, BEL is set tohave a clean slate post 1HFY2014, ie after the recent correction in the stock price
and the significant hit it took from the cost over-runs in the E&P segment due to
delayed project closures. On the back of recent developments, we expect the top-
line and bottom-line to grow at a CAGR of 14.9% and 107.7% (due to low base)
respectively over FY2013-15E. Currently, the stock is trading at a PE of 10.4x for
FY2015E earnings. Despite improving operational performance of E&P segment,we have revised our estimates downwards and continue to maintain Buy rating onthe stock with a revised target price of `184 based on target PE of 12x for FY2015E.Key financialsY/E March (` cr) FY2012 FY2013E FY2014E FY2015ENet Sales 3,099 3,388 3,885 4,472% chg 13.0 9.3 14.7 15.1
Net Profit 118 35 67 153% chg (20.0) (69.9) 89.7 127.5
EBITDA Margin (%) 7.7 3.3 4.0 5.8FDEPS (`) 11.8 3.6 6.8 15.4
P/E (x) 13.5 45.0 23.7 10.4
P/BV (x) 2.3 2.2 2.1 1.8
RoE (%) 16.8 4.9 8.8 17.3
RoCE (%) 27.9 11.6 15.9 24.7
EV/Sales (x) 0.5 0.5 0.4 0.4
EV/EBITDA (x) 7.1 15.2 10.9 6.5
Source: Company, Angel Research; Note: CMP as of August 7, 2013
BUYCMP `160
Target Price `184
Investment Period 12 Months
Stock Info
Sector
Net Debt
Bloomberg Code
Shareholding Pattern (%)
Promoters 66.1
MF / Banks / Indian Fls 4.5
FII / NRIs / OCBs 17.6
Indian Public / Others 11.9
Abs.(%) 3m 1yr 3yr
Sensex (5.8) 8.9 3.2
BEL (11.5) (11.2) (38.5)
Nifty 5,542
Reuters Code BJEL.BO
BJE IN
52 Week High / Low
BSE Sensex 18,733
Consumer durables
Market Cap (`cr) 1,599
Beta 0.8
233/150
Avg. Daily Volume 21,582Face Value (`) 2
86.0
Twinkle Gosar+91 22 3935 7800 Ext: 6848
Bajaj ElectricalsE&P despair to be done post 3QFY2014
1QFY2014 Result Update | Cons. Durables
August 8, 2013
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Bajaj Electricals | 1QFY2014 Result Update
August 8, 2013 2
Exhibit 1:1QFY2014 performance highlightsY/E March (` cr) 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy) FY2013 FY2012 % chgTotal operating income 783 1114 (29.7) 666 17.6 3,388 3,099 9.3Net raw material 622 915 (32.0) 515 20.9 2,594 2,295 13.0(% of Sales) 79.4 82.1 77.3 76.6 118.6
Employee cost 40 40 1.0 35 14.3 163 140 16.4
(% of Sales) 5.1 3.6 5.3 4.8 81.1
Other Expenses 101 146 (31.0) 82 23.5 520 427 21.8
(% of Sales) 12.9 13.1 12.3 15.3 133.3
Total expenditure 763 1101 (30.6) 632 20.9 3,277 2,862 14.5EBITDA 20 13 53.1 35 (41.6) 111 237 (53.3)EBITDA Margin (%) 2.6 1.2 140bp 5.2 (262)bp 3.3 7.7 (439)bp
Interest 16 16 1.8 16 (89.0) 69 63 9.4
Depreciation 4 4 (5.6) 3 25.2 14 13 15.4
Other income 2 8 (76.7) 3 (42.2) 42 14 189.8
PBT (excl. Extr. Items) 2 1 68.6 18 (90.6) 69 176 (60.8)Extr. Income/(Expense) 0 0 0.0 15.7 0.0
PBT (incl. Extr. Items) 2 1 18 85 176(% of Sales) 0.2 0.1 2.7 2.5 5.7
Tax 1 0 171.8 6.3 (83.1) 17.8 58.1 (69.4)
(% of PBT) 61.6 38.2 34.2 21.0 33.0
Reported PAT 1 1 4.8 12 (94.5) 51 118 (56.6)Adjusted PAT 1 1 4.8 12 (94.5) 35 118 (69.9)PATM (%) 0.1 0.1 1.8 1.0 (536.8)
Source: Company, Angel Research
Revenue in-line, profits below expectation
For 1QFY2014, BEL reported a poor set of numbers. The top-line reported a
decent growth of 17.6% yoy to `783cr, in line with our expectation of `764cr. The
EBITDA stood at `20cr which was lower by 41.6% yoy while margins at 2.6% were
lower by 262bp owing to closure of delayed E&P projects having cost over-runs.
The Net profit, on back of a sluggish operating performance, plunged by 94.5%
yoy to `0.66cr as compared to our estimate of `21cr.
Exhibit 2:Net sales growth on uptrend
Source: Company, Angel Research
Exhibit 3:Declining E&P losses to reverse EBITDA margin trend
Source: Company, Angel Research
544
701
794
1,0
60
666
734
873
1,1
14
783
12.5
19.2
15.1
8.222.4
4.7
10.05.1
17.6
0
5
10
15
20
25
0
200
400
600
800
1,000
1,200
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
(%)
(`cr)
Revenue (LHS) Revenue growth yoy (RHS)
31
53
65
86
35
26
36
13
20
5.6
7.5 8.2 8.1
5.2
3.54.1
1.2
2.6
0
1
2
3
4
5
6
7
8
9
0
10
20
30
40
50
60
70
80
90
100
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
(%)
(`cr)
EBITDA (LHS) EBIT DA Margin ( RHS)
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Bajaj Electricals | 1QFY2014 Result Update
August 8, 2013 3
Consumer durables and Lighting outperform; E&P disappoints
Revenue from the consumer durables segment grew by 11.8% yoy and came in at
`437cr (55.7% contribution to total revenue). The EBIT for the segment came in at
`40cr, 22.9% higher yoy, owing to price hikes undertaken in Jun13. The
segments EBIT margin for the quarter expanded by 83bp yoy to 9.2%.
The Lightings segment grew marginally by 3.3% yoy to `157cr and contributed
20.1% to the total revenue for the quarter. The flat growth was on account of de-
growth in the luminous segment by 1% which partially offset 6.4% growth in the
lighting segment. The EBIT for the segment rose by 4.2% yoy to `8cr and margins
expanded by a mere 4bp yoy to 4.9%.
Exhibit 4:Segment-wise performanceY/E Mar (` cr) 1QFY14 4QFY13 1QFY13 % chg (qoq) % chg (yoy)Total RevenueA) Lighting 157 285 152 (44.7) 3.3
B) Cons Durables 437 544 390 (19.7) 11.8
C) E&P 189 285 123 (33.6) 53.6
D) Others 0 0 0 (9.1) 17.6
Total 783 1,114 666 (29.7) 17.6EBIT Margin (%) (bp change)A) Lighting 4.9 7.9 4.8 (299) 4
B) Cons Durables 9.2 8.0 8.4 119 83
C) E&P (13.7) (17.8) (5.7) 409 (794)
D) Others (45.0) (0.0) (64.7) (4,498) 1,971Source: Company, Angel Research
The Engineering & Projects segments revenue posted a robust growth of 53.6%
yoy to `189cr, contributing 24.2% to the total revenue. However on the EBIT front,
owing to closure of seven old and delayed project sites in 1QFY2014, the segment
reported a loss of `26cr vis--vis EBIT loss of `7cr in the same quarter previous
year. The pinch from the E&P segment is expected to continue for the next two
quarters post which BEL will be done with its old delayed sites.
Exhibit 5:Order Book composition
Source: Company, Angel Research
Exhibit 6:Execution status and reducing EBIT losses
Source: Company, Angel Research
136
350
262
369
292257
465
618 612
536
60 75 80 4392
0
100
200
300
400
500
600
700
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
(`cr)
TLT Special Projects HMST
453
890960
1,024
920
123 133 147 285 189
7
27
40
51
26
0
10
20
30
40
50
60
0
200
400
600
800
1,000
1,200
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
(`cr)
(`cr)
Total Orders Orders executed E&P EBIT Loss
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Investment Rationale
Increased ad spends and premium segment launches to drive growth
BEL is set to celebrate its 75th year in July by elaborating its ad spends and newmarketing schemes. The ad spend is to rise by almost 50% to `75cr (from `38cr in
FY2013) in order to increase its visibility. The company has achieved decent
growth with limited advertisements till now, hence, with this increment, it is
expected to create consumer pull, thereby enhancing the top-line.
The product launch of induction cooker last year has been successful with sales
growing from `60cr in FY2011 to `150cr in FY2013. In addition, BEL has
launched a few ceiling fan models in the premium segment which are doing well
as of now. The Management expects these new launches to capture significant
market share in the next 6-8 months. BEL has also introduced air fryers and is
looking forward to enter the water purification products segment.
E&P segment to be on uptrend from FY2014
The E&P division contributed ~25-30% over FY2010-12 to the total revenue of the
company. However, the EBIT margin for the segment has been contracting
significantly since FY2010 from 10.7% to 3.3% in FY2012 on account of delayed
execution of projects and cost overruns. Hence, the company has made the
provision for the same in order to take a conservative stand. Moreover, the
company has become very selective in order intake by focusing more on
profitability (with double digit operating margins) rather than revenue growth. On
account of this, we expect the segment to register an EBIT loss of `65cr for
FY2014E (`124cr in FY2013) and move gradually to EBIT profit of `24cr inFY2015E.
Exhibit 7:Margin trend reversal for E&P segment
Source: Company, Angel Research
Capital employed for the E&P segment has reduced from `573cr in 3QFY2013E to
`489cr in 1QFY2014. The improvement is owing to receipt of advances from new
orders and provisions write off for FY2013E. BEL expects to generate sales at 50%
of capital employed in FY2014, thus providing better returns visibility.
737 831 832 688 709 731
10.7 8.9 3.3
(18.1)
(9.1)
3.3
(20)
(15)
(10)
(5)
0
5
10
15
0
100
200300
400
500
600
700
800
900
FY2010 FY2011 FY2012 FY2013 FY2014E FY2015E
(%)
(`cr)
E&P Revenue EBIT Margin
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Exhibit 8:Order book trendE&P order status FY2011 FY2012 FY2013 FY2014E FY2015EOpening order book 750 750 604 876 1,087
Order intake during year 832 688 960 920 901Executed orders 832 834 688 709 731Closing order book 750 604 876 1,087 1,256
Source: Company, Angel Research, * as on end of 2QFY2013.
Leveraging on strong brands and leading market position
BEL has a strong brand positioning and a well-spread distribution network. BEL
has collaborated with known brands in each of its segments which have enabled it
to grow at a robust pace over the years.
Exhibit 9:Strong brand associationBrand ProductsTrilux Lenze (Germany) Luminaries
Disano (Italy) Street Lights
Delta Controls (Canada) Building management systems
Rudd (US) LED
Morphy Richards (UK) appliances
Nardi (Italy) appliances
Disney (USA) Fans
Media (China) Fans
Securiton (Switzerland) Fire alarm system
Source: Company
BEL has a leading position in consumer durables, mixer, heaters, luminaries, fans
and induction cooker segment.
Exhibit 10:Leading market shareSegment Market size* Market share^Electrical Appliances `6000cr 15.0%
Fans `2000cr 16.5%
Lighting `3600cr 17.0%
Luminaries `2500cr -
Source: Company, *including organised and un-organised sector, ^in organised sector.
Recent alliance: The companys association with Glass Line Technology, Noida forin-house manufacturing of water heaters will substitute the current imports from
China and hence boost the operating margins of the company. In the water heater
segment, BEL is poised to excel in volumes since the technology used by BEL is far
better and advanced than its other two peers in this segment. Technology will be a
key driver of revenue for this segment.
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Penetration in rural market through exclusive Bajaj world stores
BEL plans to capitalize on growth in rural markets (dominated by unorganized
players) by penetrating them through its outlets Bajaj World opened mainly
through the franchise route displaying all the products of BEL. With growing
disposable incomes, rural India is poised to witness growth in electrical appliances.
BEL has already opened ~30 stores pan-India and targets 100 stores by the next
year, of which ~50 stores are to be opened in the rural market.
In addition, the company has plans to launch rural-specific brands to tap price
sensitive segments under the Bajaj umbrella. Products under this economy brand
will have different finish, designs and will be priced much lower than existing
products of BEL. With expansion of the customer base, and fresh demand coming
in, the top-line of the company assures decent growth visibility.
Exhibit 11:Segmental Contribution
Source: Company
ElectricalAppliances
36%
Engineering &Projects
20%
Lighting15%
Luminories11%
Fans18%
FY2013
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Financials
Exhibit 12:Key AssumptionsSales Growth (%) FY2012 FY2013 FY2014E FY2015E CAGR (FY2013-15E)Electrical Appliances 24.7 28.5 12.6 17.8 15.2
Fans 6.5 12.2 27.8 17.8 22.7
Lighting 28.7 21.5 (1.3) 17.8 7.8
Luminaries 13.5 2.3 43.2 17.8 29.9
Engineering & Projects 0.1 (17.3) 3.1 3.0 3.0
Total Sales Growth 13.2 9.0 14.7 15.1 14.9Source: Company, Angel Research
Exhibit 13:Change in EstimatesY/E March Earlier estimates Revised estimates % change
FY2014E FY2015E FY2014E FY2015E FY2014E FY2015ENet Sales (`cr) 3,885 4,472 3,885 4,472 (0.0) 0.0EBITDA Margin (%) 5.4 7.2 4.0 5.8 (145)bp (143)bp
EPS (`) 11 20 7 15 (38.4) (22.5)Source: Company, Angel Research
Net sales to post CAGR of 14.9% over FY2013-15E
The top-line of the company is expected to post a 14.9% CAGR over FY2013-15E
to `4,472cr backed by strong performance from the consumer durables and
revival in the E&P segment. We expect a 10.0% volume growth and a 5.0% value
growth over FY2013-15E. To combat the escalating inflation levels and commodityprices, the company continues to increase the price of its products across
segments.
Exhibit 14:Net sales growth to normalise
Source: Company, Angel Research
EBITDA to grow at 52.7% CAGR over FY2013-15E
BELs EBITDA is expected to grow at 52.7% CAGR over FY2013-15E to `258cr inFY2015E. Moreover, EBITDA margins are believed to improve from 3.3% in
FY2013 (dragged by E&P segment) to 5.8% in FY2015E. Recovery in E&P segment
2,7
41
3,0
99
3,3
86
3,8
85
4,4
72
23.013.0 9.3
14.7
15.1
0
5
10
15
20
25
-
1,000
2,000
3,000
4,000
5,000
FY2011 FY2012 FY2013 FY2014E FY2015E
(%)
(`
cr)
Net sales (LHS) Net sales growth (RHS)
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Bajaj Electricals | 1QFY2014 Result Update
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with fresh orders being bagged at healthy margins coupled with stability in
currency is expected to aid the EBITDA margin rebound.
Exhibit 15:EBITDA margins to revive with E&P turnaround
Source: Company, Angel Research
Notable PAT growth due to robust top-line and improving EBITDA
On the back of strong top-line coupled with improvement in E&P divisions
operating performance, we expect the bottom-line to post a CAGR of 107.3% over
FY2013-15E to `152cr with margin improving from 1.0% in FY2013 to 3.4% in
FY2015E.
Exhibit 16:PAT trend reversal
Source: Company, Angel Research
250 237 111 154 258
9.1
7.7
3.3
4.0
5.8
0
1
2
3
4
5
6
7
8
9
10
0
50
100
150
200
250
300
FY2011 FY2012 FY2013 FY2014E FY2015E
(%)
(`
cr)
EBITDA (LHS) EBITDA margin (RHS)
147 118 35 67 152
5.4
3.8
1.0
1.7
3.4
0
1
2
3
4
5
6
0
20
40
60
80
100
120
140
160
180
FY2011 FY2012 FY2013 FY2014E FY2015E
(%)
(`
cr)
PAT (LHS) PAT margin (RHS)
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Outlook and valuation
Amidst poor performance for the quarter, BEL is set to have a clean slate post
1HFY2014 after the stock correction and significant hit from the cost over-runs in
the E&P segments delayed projects closure. On the back of recent developments,
we expect the top-line and bottom-line to grow at a CAGR of 14.9% and 107.7%
(due to low base) respectively over FY2013-15E. Post the recent correction, the
stock is available at an attractive PE of 10.4x for FY2015E earnings. Despiteimproving operational performance of E&P segment, we have revised ourestimates downwards and continue to maintain our Buy rating on the stock with arevised target price of `184, based on target PE of 12x for FY2015E.Exhibit 17:One year forward PE
Source: Company, Angel Research
Concerns
Currency fluctuation: BEL has a substantial part of its products imported fromvarious associate foreign brands which pose a risk of currency fluctuations,
thereby impacting profitability of the company.
Change in LPG cap policy reform:Any increment in availability of subsidizedLPG cylinder which is capped to 6 per family per annum will impact the
volume of induction cookers.
Inflation: Inflationary pressure would resist volume pick up. Delay in E&P project execution.Exhibit 18:Relative ValuationCompany Sales OPM PAT EPS ROIC P/E P/BV EV/EBITDA EV/Sales(` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)BEL* 3,388 3.3 51 3.6 11.6 45.0 2.2 15.2 0.5
Surya Roshni* 3,041 8.0 72 16.3 12.9 3.9 0.4 4.0 0.3
IFB Inds.^ 908 5.3 32 7.8 10.4 5.5 0.5 3.2 0.2
Source: Capital Line, *TTM ended Jun13 quarter, ^TTM ended Mar13 quarter.
0
50
100
150
200
250
300
350
400
Feb-
08
Aug-
08
Feb-
09
Aug-
09
Feb-
10
Aug-
10
Feb-
11
Aug-
11
Feb-
12
Aug-
12
Feb-
13
Aug-
13
(`)
Price 3x 10x 17x 24x
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Profit and loss statement
Y/E March (` cr) FY2011 FY2012 FY2013 FY2014E FY2015EGross sales 2,765 3,130 3,413 3,913 4,505
Less: Excise duty 24 31 25 29 33Net Sales 2,741 3,099 3,388 3,885 4,472
Other operating income - - - - -Total operating income 2,741 3,099 3,388 3,885 4,472% chg 23.0 13.0 9.3 14.7 15.1
Net Raw Materials 2,036 2,295 2,594 3,076 3,512
% chg 26.2 12.7 13.0 18.6 14.2
Other Mfg costs 78 94 97 80 67
% chg 28.0 20.1 3.7 (18.1) (15.8)
Personnel 114 140 163 187 210
% chg 28.9 22.8 16.4 14.7 12.4
Other 263 340 426 388 425
% chg 15.1 29.1 25.2 (8.7) 9.4
Total Expenditure 2,491 2,862 3,277 3,731 4,214
EBITDA 250 237 111 154 258% chg 5.4 (5.1) (53.3) 38.8 68.0
EBITDA Margin 9.1 7.7 3.3 4.0 5.8
Depreciation & Amortisation 11 13 14 16 17
EBIT 239 225 96 138 241% chg 4.9 (6.1) (57.1) 43.1 74.7
(% of Net Sales) 8.7 7.2 2.8 3.5 5.4
Interest & other Charges 37 63 69 67 57
Other Income 16 14 42 29 44
(% of Net Sales) 0.6 0.5 1.2 0.8 1.0
Recurring PBT 203 162 27 71 184% chg 6.1 (20.2) (83.1) 161 158
PBT (reported) 219 176 69 100 228Tax 75 58 18 33 75
(% of PBT) 34.2 33.0 25.8 33.0 33.0
PAT (reported) 144 118 51 67 153Extraordinary Expense/(Inc.) (4) 0 16 - -
ADJ. PAT 147 118 35 67 153% chg 22.1 (20.0) (69.9) 89.7 127.5
(% of Net Sales) 5.4 3.8 1.0 1.7 3.4
Basic EPS (`) 14.9 11.8 3.6 6.8 15.4Fully Diluted EPS ( ) 14.9 11.8 3.6 6.8 15.4
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Balance sheet
Y/E March (` cr) FY2011 FY2012 FY2013 FY2014E FY2015ESOURCES OF FUNDSEquity Share Capital 20 20 20 20 20Reserves& Surplus 591 680 709 743 864
Shareholders Funds 611 700 728 763 884Minority Interest - - - - -Total Loans 112 187 166 160 136
Long term Provisions 16 19 25 25 25
Net Deferred Tax Liability (2.0) (1.9) (7.9) (7.9) (7.9)
Total Liabilities 737 904 911 940 1,037APPLICATION OF FUNDSGross Block 230 272 332 365 402
Less: Acc. Depreciation 74 85 100 116 133
less: impairment of assets 3 3 - - -
Net Block 153 184 232 250 269Capital Work-in-Progress - 3 - - -
Goodwill - - - - -
Investments 37 44 30 33 36
Long Term Loans and adv. 97 109 73 73 73
Other non-current assets 154 186 265 253 268
Current Assets 1,322 1,423 1,550 1,742 1,983Cash 48 54 50 41 25
Loans & Advances 68 92 141 155 179
Inventory 295 355 421 470 541
Debtors 911 922 938 1,076 1,238
Current liabilities 1,026 1,045 1,238 1,410 1,592
Net Current Assets 296 378 312 333 391Mis. Exp. not written off - - - - -
Total Assets 737 904 911 940 1,037
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Cash flow statement
Y/E March (` cr) FY2011 FY2012 FY2013 FY2014E FY2015EProfit before tax 219 176 69 100 228
Depreciation 11 13 14 16 17(Inc.)/ Dec. in Working Capital (16) (14) (42) (29) (44)
Less: Other income 199 (77) 78 (30) (75)
Direct taxes paid (75) (58) (18) (33) (75)
Cash Flow from Operations 337 39 102 24 51(Inc.)/ Dec. in Fixed Assets (214) (77) (136) (21) (52)
(Inc.)/ Dec. in Investments (97) (19) 51 (3) (3)
Other income 16 14 42 29 44
Cash Flow from Investing (296) (82) (43) 5 (11)Issue of Equity 0 0 0 0 0
Inc./(Dec.) in loans (25) 79 (22) (6) (24)
Dividend Paid (Incl. Tax) (28) (28) (24) (32) (32)
Others (18) (3) (16) - -Cash Flow from Financing (70) 48 (63) (38) (56)Inc./(Dec.) in Cash (29) 5 (4) (9) (16)
Opening Cash balances 77 48 54 50 41Closing Cash balances 48 54 50 41 25
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Key ratios
Y/E March FY2011 FY2012 FY2013 FY2014E FY2015EValuation Ratio (x)P/E (on FDEPS) 10.8 13.5 45.0 23.7 10.4P/CEPS 10.1 12.2 32.0 19.2 9.4
P/BV 2.6 2.3 2.2 2.1 1.8
Dividend yield (%) 1.7 1.7 1.5 2.0 2.0
EV/Sales 0.6 0.5 0.5 0.4 0.4
EV/EBITDA 6.5 7.1 15.2 10.9 6.5
EV / Total Assets 2.2 1.9 1.8 1.8 1.6
Per Share Data (`)EPS (Basic) 14.9 11.8 3.6 6.8 15.4
EPS (fully diluted) 14.9 11.8 3.6 6.8 15.4
Cash EPS 15.9 13.1 5.0 8.3 17.1
DPS 2.8 2.8 2.8 2.8 2.8
Book Value 61.3 70.2 73.1 76.6 88.7
Dupont AnalysisEBIT margin 8.7 7.2 2.8 3.5 5.4
Tax retention ratio 0.7 0.7 0.7 0.7 0.7
Asset turnover (x) 4.2 3.9 4.1 4.5 4.6
ROIC (Post-tax) 24.1 18.7 8.6 10.7 16.5
Cost of Debt (Post Tax) 21.5 22.6 30.9 27.9 27.9
Leverage (x) 0.0 0.1 0.1 0.1 0.1
Operating ROE 24.2 18.2 6.0 8.7 15.6
Returns (%)ROCE (Pre-tax) 32.4 24.8 10.6 14.7 23.2
Angel ROIC (Pre-tax) 36.7 27.9 11.6 15.9 24.7
ROE 24.1 16.8 4.9 8.8 17.3
Turnover ratios (x)Asset Turnover (Gross Block) 4.3 11.4 10.2 10.6 11.1
Inventory / Sales (days) 34 38 49 47 47
Receivables (days) 111 109 109 109 109
Payables (days) 126 121 121 121 121
WC cycle (ex-cash) (days) 46 46 28 27 30
Solvency ratios (x)Net debt to equity 0.0 0.1 0.1 0.1 0.1
Net debt to EBITDA 0.1 0.4 0.8 0.6 0.3
Interest Coverage (EBIT / Int.) 6.5 3.6 1.4 2.1 4.3
7/27/2019 Bajaj Electricals, 1Q FY 2014
14/14
Bajaj Electricals | 1QFY2014 Result Update
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Bajaj Electricals
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)
Note: We have not considered any Exposure below`
1 lakh for Angel, its Group companies and Directors
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