Bajaj Holdings & Investment (500490) Q4 17/18 earnings summary

Executive summary

• FY2018 delivered record standalone and consolidated results, supported by higher dividends, investment-sale gains and stronger associate earnings.

• The portfolio’s market value reached ₹66,406 crore at 31 March 2018, against investment cost of ₹7,817 crore.

Financial highlights

• Standalone revenue was ₹1,474.42 crore vs ₹888.43 crore; profit for the year was ₹1,313.55 crore vs ₹538.18 crore.

• Standalone profit before tax rose to ₹1,404.30 crore from ₹672.49 crore; EPS was ₹118.0 vs ₹48.4.

• Consolidated revenue was ₹964.83 crore vs ₹850.08 crore; profit for the year was ₹3,185.68 crore vs ₹2,473.19 crore, up 29%.

• Consolidated EPS was ₹286.2 vs ₹222.2; share of associates’ profit after tax was ₹2,387.48 crore vs ₹1,977.50 crore.

• Standalone dividend income was ₹571 crore vs ₹97 crore; net gains on equity investment sales were ₹493 crore vs ₹362 crore.

Outlook and guidance

• FY2019 outlook anticipated improved prospects from the FY2018 reversal in gross fixed capital formation; equity-market upside was expected to depend on corporate earnings.

• Bond yields were expected to remain elevated amid rising inflation, higher fiscal deficits and global monetary tightening.