Bajaj Holdings & Investment EBITDA dropped on 16.7% in 2016 and Revenue dropped on 15.2%
25 May 2016 • About Bajaj Holdings & Investment (
$BAUD) • By InTwits
Bajaj Holdings & Investment reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bajaj Holdings & Investment is a company in decline: FY2016 revenue growth was -15.2%, 5 years revenue CAGR was -12.6%
- EBITDA Margin is declining: 91.1% in FY2016 vs. 92.7% in FY2015 vs. 96.2% in FY2012
- Bajaj Holdings & Investment has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.0%.
- The company has potentially unprofitable business model: ROIC is at 2.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bajaj Holdings & Investment ($BAUD) key annual financial indicators
| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,010 | 3,392 | 4,180 | 5,428 | 4,601 | -15.2% |
| EBITDA | 2,894 | 3,241 | 3,946 | 5,030 | 4,190 | -16.7% |
| Net Income | 16,792 | 18,564 | 19,876 | 20,292 | 22,652 | 11.6% |
Balance Sheet
|
|---|
| Cash | 511 | 332 | 603 | 11 | 14,070 | 128,980.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 0 | 0 | 0 | 1 | 9 | 1,600.0% |
Ratios
|
|---|
| Revenue growth | -66.6% | 12.7% | 23.2% | 29.9% | -15.2% | |
| EBITDA growth | -67.4% | 12.0% | 21.8% | 27.5% | -16.7% | |
| EBITDA Margin | 96.2% | 95.5% | 94.4% | 92.7% | 91.1% | -1.6% |
| Net Income Margin | 557.9% | 547.2% | 475.5% | 373.8% | 492.3% | 118.5% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | 0.2% |
| ROIC | 3.6% | 3.4% | 3.5% | 3.9% | 2.9% | -1.0% |
| ROE | 20.8% | 19.5% | 17.8% | 16.0% | 15.8% | -0.2% |
| Net Debt/EBITDA | -0.2x | -0.1x | -0.2x | -0.0x | -3.4x | -3.4x |
Revenue and profitability
The company's Revenue dropped on 15.2% in FY2016. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.6 pp from 92.7% to 91.1% in FY2016.
Net Income marign surged on 118 pp from 374% to 492% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Bajaj Holdings & Investment had CAPEX/Revenue of 0.18%. CAPEX/Revenue showed almost no change from FY2013 to FY2016.
Return on investment
The company operates at good ROE (15.79%) while ROIC is low (2.88%). ROIC decreased slightly on 1.0 pp from 3.9% to 2.9% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
The company has no debt. Cash jumped on 128,981% in FY2016.
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Srei Infrastructure Finance ($SRI) | | 27.2% | 0.4% | 2.3% | 1.3% |
| |
|---|
| Median (1 company) | | 27.2% | 0.4% | 2.3% | 1.3% |
|---|
| Bajaj Holdings & Investment ($BAUD) | | 12.7% | 23.2% | 29.9% | -15.2% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Srei Infrastructure Finance ($SRI) | 80.6% | 83.9% | 83.7% | 78.5% | 72.8% |
| |
|---|
| Median (1 company) | 80.6% | 83.9% | 83.7% | 78.5% | 72.8% |
|---|
| Bajaj Holdings & Investment ($BAUD) | 96.2% | 95.5% | 94.4% | 92.7% | 91.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Srei Infrastructure Finance ($SRI) | 29.3% | 8.3% | 12.6% | 5.4% | 6.0% |
| |
|---|
| Median (1 company) | 29.3% | 8.3% | 12.6% | 5.4% | 6.0% |
|---|
| Bajaj Holdings & Investment ($BAUD) | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Srei Infrastructure Finance ($SRI) | | | | | |
| |
|---|
| Median (1 company) | | | | | |
|---|
| Bajaj Holdings & Investment ($BAUD) | 3.6% | 3.4% | 3.5% | 3.9% | 2.9% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Srei Infrastructure Finance ($SRI) | 7.0x | 6.2x | 7.5x | 8.0x | 8.7x |
| |
|---|
| Median (1 company) | 7.0x | 6.2x | 7.5x | 8.0x | 8.7x |
|---|
| Bajaj Holdings & Investment ($BAUD) | -0.2x | -0.1x | -0.2x | -0.0x | -3.4x |
