BAJAJ FINANCE Announces Quarterly Results (2QFY21); Net Profit Down 35.9%

Thu, 22 Oct

BAJAJ FINANCE has announced its results for the quarter ended September 2020. Here is a detailed performance review of the same:

BAJAJ FINANCE Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-19*	3 Jun-20*	3 Sep-20*	QoQ Change	YoY Change
Net Sales	Rs m	63,215	66,297	64,784	-2.3%	2.5%
Other income	Rs m	11	15	67	337.7%	512.7%
Turnover	Rs m	63,226	66,312	64,852	-2.2%	2.6%
Expenses	Rs m	19,060	27,582	27,882	1.1%	46.3%
Gross profit	Rs m	44,155	38,900	37,284	-4.2%	-15.6%
Depreciation	Rs m	707	842	715	-15.1%	1.1%
Interest	Rs m	23,234	24,976	23,581	-5.6%	1.5%
Profit before tax	Rs m	20,224	13,097	13,055	-0.3%	-35.5%
Tax	Rs m	5,161	3,474	3,406	-2.0%	-34.0%
Profit after tax	Rs m	15,063	9,623	9,649	0.3%	-35.9%
Gross profit margin	%	69.8	58.7	57.6
Effective tax rate	%	25.5	26.5	26.1
Net profit margin	%	23.8	14.5	14.9

Year-on-Year Performance:

• The company's operating income during the quarter grew 2.5% on a year-on-year (YoY) basis. The expenses were up by 46.3% YoY during the same period.
• The company's operating profit declined by 15.6% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 57.6% in 2QFY21 as against 69.8% in 2QFY20.
• Depreciation charges increased by 1.1% and finance costs increased by 1.5% YoY, respectively.
• Other income increased by 512.7% YoY during the quarter.
• Net profit for the quarter declined by 35.9% YoY. Net profit margins during the quarter declined from 23.8% in 2QFY20 to 14.9% in 2QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 2.3% on a quarter-on-quarter (QoQ) basis. The expenses were up by 1.1% QoQ during the same period.
• The company's operating profit declined by 4.2% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 57.6% in 2QFY21 as against 58.7% in 1QFY20.
• Net profit for the quarter increased by 0.3% QoQ, while net profit margins increased from 14.5% in 1QFY20 to 14.9% in 2QFY21.

To see how BAJAJ FINANCE has performed over the last eight quarters,please visit here.

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BAJAJ FINANCE Share Price Performance

Over the last one year, BAJAJ FINANCE share price has moved down from Rs 4,032.0 to Rs 3,170.0, registering a Loss of Rs 862.0 or around 21.4%.

Overall, the S&P BSE SENSEX is up 4.0% over the year.

Current Valuations

At the current price of Rs 3,170.0, the price to earnings (P/E) ratio of BAJAJ FINANCE stands at 42.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 5.9 times.