Bajaj Holdings & Investment revenue jumped on 29.9% in 2015 while EBITDA Margin decreased slightly on 1.8 pp from 94.4% to 92.7%
21-05-2015 • About Bajaj Holdings & Investment (
$BAJAJHLDNG) • By InTwits
Bajaj Holdings & Investment reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 92.7% in FY2015 vs. 94.4% in FY2014 vs. 98.7% in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bajaj Holdings & Investment ($BAJAJHLDNG) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,002 | 3,010 | 3,392 | 4,180 | 5,428 | 29.9% |
| EBITDA | 8,886 | 2,894 | 3,241 | 3,946 | 5,030 | 27.5% |
| Net Income | 23,228 | 16,792 | 18,564 | 19,876 | 20,292 | 2.1% |
Balance Sheet
|
|---|
| Cash | 2,223 | 511 | 332 | 603 | 11 | -98.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | | 0 | 0 | 0 | 1 | |
Ratios
|
|---|
| Revenue growth | 25.1% | -66.6% | 12.7% | 23.2% | 29.9% | |
| EBITDA growth | | -67.4% | 12.0% | 21.8% | 27.5% | |
| EBITDA Margin | 98.7% | 96.2% | 95.5% | 94.4% | 92.7% | -1.8% |
| Net Income Margin | 258.0% | 557.9% | 547.2% | 475.5% | 373.8% | -101.7% |
| CAPEX, % of revenue | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| ROIC | 11.7% | 3.6% | 3.4% | 3.5% | 3.9% | 0.4% |
| ROE | 35.7% | 20.8% | 19.5% | 17.8% | 16.0% | -1.8% |
| Net Debt/EBITDA | -0.3x | -0.2x | -0.1x | -0.2x | -0.0x | 0.2x |
Revenue and profitability
The company's Revenue surged on 29.9% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.2 pp from 6.6% to 0.41% in FY2015.
Net Income marign dropped on 102 pp from 476% to 374% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.0092%. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015.
Return on investment
The company operates at good ROE (15.98%) while ROIC is low (3.91%). ROIC showed almost no change in FY2015. ROE decreased slightly on 1.8 pp from 17.8% to 16.0% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 98.2% in FY2015.
Appendix 1: Peers in Finance (including NBFCs)
Below you can find Bajaj Holdings & Investment benchmarking vs. other companies in Finance (including NBFCs) industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Advance Powerinfra Tech ($ADVPOWER) | | | | 209.3% | |
| Vishwamitra Financial Services ($VISHWAFIN) | | | 65.2% | 118.5% | |
| Industrial Investment Trust ($IITL) | -88.9% | 119.2% | 72.5% | 76.4% | |
| Sks Microfinance ($SKSMICRO) | | -62.8% | -25.6% | 55.0% | 47.3% |
| Muthoot Capital Services ($MUTHTFN) | -83.3% | 81.1% | 59.3% | 48.1% | |
| |
|---|
| Median (23 companies) | -51.4% | 23.5% | 26.9% | 19.8% | 13.3% |
|---|
| Bajaj Holdings & Investment ($BAJAJHLDNG) | | -66.6% | 12.7% | 23.2% | 29.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pnb Gilts ($PNBGILTS) | 91.8% | 94.0% | 96.4% | 96.4% | 96.1% |
| Jsw Holdings ($JSWHL) | | | | | 93.8% |
| Tci Finance ($TCIFINANCE) | | | | | 87.6% |
| IDFC Limited ($IDFC) | 85.3% | 88.1% | 89.6% | 87.0% | 81.7% |
| Srei Infrastructure Finance ($SREINFRA) | 78.5% | 80.6% | 83.9% | 83.7% | 78.5% |
| |
|---|
| Median (24 companies) | 68.2% | 64.8% | 65.4% | 65.5% | 62.6% |
|---|
| Bajaj Holdings & Investment ($BAJAJHLDNG) | 98.7% | 96.2% | 95.5% | 94.4% | 92.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Srei Infrastructure Finance ($SREINFRA) | 34.8% | 29.3% | 8.3% | 12.6% | 5.4% |
| Clarus Finance & Securities ($CLARUS) | | | | 6.9% | |
| Industrial Investment Trust ($IITL) | 3.7% | 1.1% | 0.3% | 4.9% | |
| Fortune Financial Services (India) ($FORTUNEF) | 5.5% | 1.0% | 1.3% | 4.5% | 7.3% |
| A.K.Capital Services ($AKCAPIT) | 1.9% | 0.3% | 2.9% | 4.1% | |
| |
|---|
| Median (20 companies) | 1.8% | 1.0% | 0.8% | 1.1% | 0.7% |
|---|
| Bajaj Holdings & Investment ($BAJAJHLDNG) | | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Motilal Oswal Financial Services ($MOTILALOFS) | | | 12.0% | 9.7% | 11.9% |
| Shriram City Union Finance ($SHRIRAMCIT) | | 6.1% | 5.8% | 5.8% | 5.7% |
| Mahindra & Mahindra Financial Services ($M&MFIN) | 7.3% | 6.4% | 6.3% | 5.3% | 4.2% |
| Rural Electrification Corporation ($RECLTD) | | | 4.7% | 5.2% | |
| IDFC Limited ($IDFC) | 4.8% | 4.8% | 5.0% | 4.3% | 3.4% |
| |
|---|
| Median (52 companies) | 4.8% | 4.6% | 4.7% | 4.2% | 4.2% |
|---|
| Bajaj Holdings & Investment ($BAJAJHLDNG) | 11.7% | 3.6% | 3.4% | 3.5% | 3.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pnb Gilts ($PNBGILTS) | 9.0x | 14.2x | 11.2x | 11.3x | 8.8x |
| Fortune Financial Services (India) ($FORTUNEF) | 4.7x | 9.0x | | 10.8x | 8.9x |
| Vibrant Global Capital ($VGCL) | 7.8x | 23.1x | 32.8x | 10.7x | |
| Rural Electrification Corporation ($RECLTD) | 8.1x | 8.3x | 8.0x | 7.5x | |
| Srei Infrastructure Finance ($SREINFRA) | 6.4x | 7.0x | 6.2x | 7.5x | 8.0x |
| |
|---|
| Median (39 companies) | 3.0x | 4.8x | 3.6x | 3.9x | 3.2x |
|---|
| Bajaj Holdings & Investment ($BAJAJHLDNG) | -0.3x | -0.2x | -0.1x | -0.2x | -0.0x |
