Bajaj Auto Q4 net profit up 29% to Rs 803 cr

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Pune | Updated: May 26, 2016 8:12:09 AM

With domestic market gains making up for fall in exports, Bajaj Auto on Wednesday reported a 29% growth in profit after tax to Rs 803.06 crore during Q4FY16.

With domestic market gains making up for fall in exports, Bajaj Auto on Wednesday reported a 29% growth in profit after tax to Rs 803.06 crore during Q4FY16.

Bajaj’s turnover was up 14% to Rs 5,411.42 crore during the quarter. The company’s operating EBITDA margins were are 22.1%. Operating profits rose 30% to Rs 1,199.51 crore. Total sales during Q4FY16 was at 8.72 lakh units with motorcycles sales growing at 12% to 7.52 lakh units while sale of commercial vehicles went up 9% to 1,19,939 units.

The marked-to-market gains during the quarter was lower at Rs 30 crore compared to Rs 60 crore gains it had made in the same period previous year.

“Export revenues fell by 3% to Rs 2,021 crore and this was due of external factors beyond the control of the company,” said S Ravikumar, president, business development, Bajaj Auto. He attributed this fall to the currency and political situation the Nigerian and Egypt markets. While a recovery is being seen in the export markets in April and May of the current fiscal,” he said.

“In FY17, while Bajaj will be cautiously optimistic about the export markets, the company is confident of doing well in the domestic markets,” Ravikumar said.

Bajaj Auto has set a target of selling a total of 4.6 million vehicles in FY17 with market share of around 24% to 25%. The company has a conservative export target of 1.6 million unit sales from exports in FY17, he said.

The total FY16 sales was at 3.89 million units while exports touched 1.46 million units. “The product mix has turned favourable and with new product plans the company will regain market share,” Ravikumar said.

A top-end Pulsar and the new Platina is slated for a Q2FY17 launch which will boost sales further.

“Every single product we launched last year from CT, Platina, Avenger and V15 has met with success. Going forward we will have a full year with V, Avenger and new product line for this fiscal will improve domestic market share,” he said.

The company has regained market share from 15% in January 2015 to 20% in March 2016, Ravikumar said. Being a differentiated product the Avenger is holding on and the 150cc V15 expanded our share in the value segment from 4.5% to 16% in April ’16, he added. The company sold 24,000 units of V in April 2016 and Avengers are selling around 25,000 units a month.

Bajaj ended FY16 with a turnover of Rs 23,601 crore out of which exports were to the tune of Rs 9,773 crore and net profit was Rs 3,652 crore. Operating EBITDA margin was 22.1%. Bajaj exported 1.46 million motorcycles and 2,80,000 three-wheelers in FY16 with exports valued at R9,773 crore ($1.4 billion).

Shares of Bajaj Auto were trading at R2491.95 apiece in the afternoon trade, up 4.51% from the previous close on BSE.

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