Bajaj Auto reported 0.6% y-o-y drop in consolidated profit after tax (PAT) to Rs 1,193.58 crore during Q2FY18, but the company registered growth in sales turnover and volumes.
Bajaj Auto reported 0.6% y-o-y drop in consolidated profit after tax (PAT) to Rs 1,193.58 crore during Q2FY18, but the company registered growth in sales turnover and volumes. Bajaj’s revenues in the second quarter went up by 2% y-o-y to Rs 6,566.43 crore while sales volume was up 4% to 10.71 lakh units. The company’s Ebitda margin reduced to 20.8% during Q2FY18 compared with 22.3% it had registered in the same quarter in FY17. Its total income rose by 1.3% to Rs 6,863.61 crore, though its other income was down 13.28% to Rs 297.18 crore during the quarter. The order book for October was healthy while outlook for November and December 2017 was encouraging and it was on track to exceed its target for the year, the company said. Bajaj’s stand-alone PAT was marginally down to Rs 111,1.86 crore. The company’s total sales volume during Q2FY18 grew by 4% to 10.71 lakh units.
Motorcycles sales were at 9.18 lakh units which was a 2% growth while commercial sales rose 14% to 1.52 lakh units during the second quarter. The company’s domestic sales increased by 2% to 6.68 lakh units while exports rose by 14% to 4.02 lakh units. Bajaj Auto’s market share in the domestic motorcycle market was at 17% during Q2FY17 and during September 2017, the market share had climbed up to reach 19.5%. The company said it had its best ever total monthly sales of 4.28 lakh units, highest ever monthly sales in commercial vehicles of 59,074 units and highest sales of Pulsars of 1,12,075 units during September 2017. In the exports market, new markets contributed 16% to the total volumes during the second quarter.
“With stability returning to Nigeria, motorcycle volumes have steadily improved from 8,000 units in April 2017 to 26,000 in August 17 and 23,000 units in September Rs 17,” the company said. The slowdown in Sri Lanka was being compensated by growth in volumes in Bangladesh and Philippines. The end of Permit Raj in Maharashtra, release of new permits in Delhi and shift from 2-stroke to 4-stroke three-wheelers in Bengaluru benefited Bajaj Auto with the commercial vehicle sales recording its highest ever quarterly volume of 84,938 units in the domestic market.
With demand for CV in the domestic and international markets outstripping supply, it has temporarily deferred the capacity and diverted it to the domestic market, the firm said. The firm expects to cross a record three lakh CV units in FY18 well ahead of its annual target. Cash reserves at Bajaj Auto stood at Rs 12,699 crore as on September 30, 2017. The Bajaj Auto share hit the 52 week high level of Rs 3,310 on the BSE after the results were announced before closing at Rs 3,257, a 1.02% rise.