Bajaj Auto posts 35% rise in Q4 profit

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Pune | Published: May 19, 2018 4:27:19 AM

Bajaj Auto on Friday posted a decent set of numbers in the January-March quarter beating analysts’ estimates on all the fronts. On the back of a revival in domestic demand and continued exports growth, the company’s standalone net profit saw an increase of 34.7% year-on-year to Rs 1,080 crore.

Bajaj Auto, automobile industry, automobile sector, economyThe company’s board of directors recommended a dividend of Rs 60 per share, and the total amount of dividend and tax thereon amounts to Rs 2,093 crore.

Bajaj Auto on Friday posted a decent set of numbers in the January-March quarter beating analysts’ estimates on all the fronts. On the back of a revival in domestic demand and continued exports growth, the company’s standalone net profit saw an increase of 34.7% year-on-year to Rs 1,080 crore. Bloomberg consensus estimates had peggged it at Rs 1,047 crore. Net sales saw a growth of 38.4% at Rs 6,651 crore against the Bloomberg estimate of Rs 6,645 crore. Ebitda registered a growth of 44.3% at Rs 1,308 crore against the estimate of Rs 1,297 crore.

In the last six months, the company’s volume recorded a strong recovery as it plugged gaps in its portfolio. Its new launches like the CT100 ES, Platina ES, and Platina Comfortec did well. In the January-March period, its domestic motorcycles sales grew by 20% to 4,97,587 units while exports were up 25% to 3,58,802 units, taking the total motorcycle sales up 22% to 8,56,389 units. Total commercial vehicle sales more than doubled to 1,88,989 units with CV exports going up 31% to 66,760 units while domestic CV sales zoomed 144% y-o-y to1,22,229 units.

S Ravikumar, president, business development and assurance, Bajaj Auto, told FE that exports will be stable this year. The African market will come back for them this year, he said.

There is also a tremendous headroom to grow CV exports this year and growth would be in the 18% to 20% level he said. They will go to new countries and see the markets they have entered into mature soon.

The Philippines and Latin American countries are new markets for CV and Iraq too was doing well, Ravikumar said. They have also started cargo CV exports and expect growth from this business.

The company’s board of directors recommended a dividend of Rs 60 per share, and the total amount of dividend and tax thereon amounts to Rs 2,093 crore.

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