Bajaj Auto Q1 FY17 Results

bajaj

Turnover* – ` 6,356 crore PAT – ` 978 crore Operating EBITDA margin at 21.2%

A meeting of the Board of Directors of Bajaj Auto Limited was held today to consider and approve the results for Q1 / FY17.

Company has, for the first time, adopted Indian Accounting Standards (Ind-AS) for FY17 with Ind-AS compliant comparatives for FY16. Accordingly, figures for previous year/period have been re-cast and reviewed by statutory auditors as per new accounting standards.

The performance of the company has been highlighted below. Despite input cost pressures and continuing headwinds in export markets, the company has declared an industry high EBITDA of 21.2%.

The standalone profit after tax stands at ` 978 crore whereas consolidated profit after tax crosses ` 1,000 crore – ` 1,040 crore.

 Performance highlights

` in crore Q1

FY17

Q1

FY16

FY16
A. Standalone results
Sales ( No’s ) 994,733 1,013,029 3,893,581
Turnover* 6,356 6,188 24,957
Operating EBITDA 1,227 1,191 5,044
Operating EBITDA % 21.2 21.1 22.2
Profit before tax 1,366 1,368 5,547
Profit after tax 978 957 3,930
B. Consolidated results
Consolidated profit after tax 1,040 914 4,061
  1. Sales numbers
Q1

FY17

Q1

FY16

Q4

FY16

Q on Q

Change

Sequential

Change

FY16
Domestic
Motorcycles 548,880 485,818 468,782 13% 17% 1,898,957
CV 75,204 50,715 71,129 48% 6% 254,995
Sub-total 624,084 536,533 539,911 16% 16% 2,153,952
Exports
Motorcycles 323,660 389,417 283,737 -17% 14% 1,459,295
CV 46,989 87,079 48,810 -46% -4% 280,334
Sub-total 370,649 476,496 332,547 -22% 11% 1,739,629
Total
Motorcycles 872,540 875,235 752,519 16% 3,358,252
CV 122,193 137,794 119,939 -11% 2% 535,329
Total 994,733 1,013,029 872,458 -2% 14% 3,893,581

Performance of Q1 / FY17 is better appreciated on comparison with the sequential numbers for Q4 / FY16.

  1. Motorcycles
  • Domestic motorcycles sales grew by 13% as against industry growth of 9%.
  • While quarter on quarter growth stood at 13%, sequentially company sold ~548,000 vehicles as against ~468,000 – resulting in a growth of 17%.
  • As a result, overall market share in domestic motorcycles improved to 19% in Q1 / FY17.
  • The growth has been fuelled by the success of new products
    • The iconic V15 motorcycle has been extremely well received by the market with sales of ~82,000 units in Q1
    • Avenger continues it’s successful run with sales in excess of 56,000 during Q1
  • The Pulsar and Avenger combined recorded a growth of 20% while the segment growth for the industry was 13%.
  • KTM recorded a growth of 23%.
  • Overall, Bajaj Auto remains a dominant player in segments which represent ~40% of the total domestic motorcycle market.
  1. Commercial Vehicle
  • Sales in domestic market grew by 48% as against industry growth of 23%
  • Sequentially, company sold ~75,000 vehicles as against ~71,000 in Q4 / FY16
  • As a result, overall share in domestic market has improved from 47% in FY16 to 54% in Q1 / FY17
  • Company continues to hold dominant share in domestic market in the In-city category; ~89%.
  • Witnessed major gains in diesel segment; market share improved from 32% in FY16 to 35% in Q1 / FY17
    • Market leader in small diesel carriers; share in domestic market at ~73% v/s ~65% in FY16.
    • Share in domestic market of big diesel carriers at a healthy ~23% v/s ~20% in FY16.
  1. International Business
  • Headwinds continue in export markets viz. Nigeria & Egypt. Decline in exports is attributable primarily to external factors – availability of foreign currency and depreciation in local currency.
  • Exports sequentially grew from ~332,500 units in Q4 / FY16 to ~370,600 units in Q1 / FY17. However lower than ~476,000 units in Q1 / FY16.
  • Company has improved its market shares in most of the export markets.

 For Q1 / FY17, the average realization was ` 67.1 / USD as against ` 67.5 / USD in Q4 / FY16 and ` 63.9 / USD in Q1 / FY16.

  1. Results

Standalone :

  • Despite input cost increase and lower exports, Company maintains industry leading EBITDA margin of 21.2% in Q1 / FY17.
  • EBITDA increased to ` 1,227 crore in Q1 / FY17 v/s ` 1,191 crore in Q1 / FY16

Standalone profit before tax was ` 1,366 crore v/s ` 1,368 crore in Q1 / FY16

Profit after tax stood at ` 978 crore v/s ` 957 crore in Q1 / FY16

Consolidated :

  • BAIH BV, a Netherlands based 100% subsidiary of Bajaj Auto Ltd, holds 47.99% stake in KTM AG.

In this quarter, BAIH BV received a dividend of Euro 2 per share ( Euro 10.4 million, i.e ` 78 crore ) declared by KTM AG for the calendar year 2015.

BAIH BV has not declared any dividend.

  • Consolidated profit after tax increased to ` 1,040 crore v/s ` 914 crore in Q1 / FY16
  1. Cash and cash equivalents

Cash and cash equivalents as on 30th June 2016 stood at ` 10,701 crore as against ` 9,085 crore as on 31st March 2016.