However, stocks fall 5% as topline growth, operating profit disappoint
The country’s second-largest two-wheeler manufacturer by volume, Bajaj Auto on Thursday beat street estimates by posting a 37.2% higher net profit at Rs 1,015 crore on a yearly basis in the April-June quarter, largely on the back of doubling of other income to Rs 436.81 crore. The company, however, disappointed on its topline growth and operating profit due to lower realisations, which pulled down its stocks. The Bajaj Auto scrip closed down 5.02% at Rs 2,487.75 on the BSE on Thursday.
Total income in the period grew in single digits at 6.9% to Rs 5,613.5 crore while Ebitda grew by 23.2% year-on-year to Rs 1,140 crore with margin expanding by 270 basis points to 20.3% due to lower realisation. This was because of higher volumes of low-margin products like CT 100 and Platina. The company’s net sales was up 7.2% at Rs 5,505.06 crore
Though low sales volume impacted its topline growth on a sequential basis, the overall business was fine. “The company’s strategy for growth in markets across the globe and increase of share in the domestic motorcycle market has yielded desired results. Export revenue at Rs 2,634 crore recorded a growth of 17% year-on-year,” the company said. On a sequential basis, the company’s share in the domestic market increased by 300 basis points to 18%.
Bajaj Auto sold 10.13 lakh units in the quarter, which was up 2.5% on a y-o-y basis. However, on a sequential basis, sales were up 29%. In fact, exports grew 34.3% quarter-on-quarter to 4.76 lakh units and domestic volumes rose 25.3% to 5.36 lakh units in the quarter.
Other income, which almost doubled to Rs 436.81 crore, included mark-to-market gain of Rs 4.7 crore against a loss of Rs 5.43 crore in the preceding quarter and a loss of Rs 67.23 crore a year earlier; and investment income of Rs 394.36 crore on redemption of fixed maturity plan investments.
Gain some, lose some
* Low sales volume impacted topline growth on a sequential basis
* Total income in the period grew in single digits at 6.9% to Rs 5,613.5 crore
* Margin expanded 270 bps to 20.3% on lower realisation due to higher volumes of low-margin products