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Weak volumes, higher costs dent Bajaj Auto's Q4 show

The company hopes for a better performance in FY18

Ram Prasad Sahu 

Barring the margin blip, Bajaj Auto’s fourth (March) quarter numbers were broadly in line with Street expectation. Despite a weaker volume, down 10 per cent due to demonetisation and shift to BS-IV emission standards, revenue was Rs 5,212 crore, down only three per cent over a year ago and better than the Bloomberg consensus estimate of Rs 4,830 crore.  The operating profit margin was 21.2 per cent, pegged back by higher raw material costs and expenditure from the transition to BS-IV, down 210 basis points (bps) over a year. Higher raw material costs and stiff ...

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Weak volumes, higher costs dent Bajaj Auto's Q4 show

The company hopes for a better performance in FY18

Barring the margin blip, Bajaj Auto reported fourth quarter number broadly in line with Street expectations. Despite the weak volumes which fell nearly 10 per cent in the quarter due to fall out of demonetisation and shift to BSIV standard, revenues driven by higher realisations came in at Rs 5,212 crore, down by 3 per cent over the year ago quarter. Revenues came in better than Bloomberg consensus estimates of Rs 4,830 crore. The reported operating profit margins for the company came in at 21.2 per cent, pegged back by higher raw material costs as well expenditure associated with transition from BSIII to BSIV emission standards. Margins were down 210 basis points as compared to the year ago period. Higher raw material costs as well as stiff competition across its categories will limit scope for further margin gains going ahead. The weak operating performance and higher costs led to the disappointment on the net profit front. The bottomline at Rs 801 crore was down 15.6 per cent year . Barring the margin blip, Bajaj Auto’s fourth (March) quarter numbers were broadly in line with Street expectation. Despite a weaker volume, down 10 per cent due to demonetisation and shift to BS-IV emission standards, revenue was Rs 5,212 crore, down only three per cent over a year ago and better than the Bloomberg consensus estimate of Rs 4,830 crore.  The operating profit margin was 21.2 per cent, pegged back by higher raw material costs and expenditure from the transition to BS-IV, down 210 basis points (bps) over a year. Higher raw material costs and stiff ... image
Business Standard
177 22

Weak volumes, higher costs dent Bajaj Auto's Q4 show

The company hopes for a better performance in FY18

Barring the margin blip, Bajaj Auto’s fourth (March) quarter numbers were broadly in line with Street expectation. Despite a weaker volume, down 10 per cent due to demonetisation and shift to BS-IV emission standards, revenue was Rs 5,212 crore, down only three per cent over a year ago and better than the Bloomberg consensus estimate of Rs 4,830 crore.  The operating profit margin was 21.2 per cent, pegged back by higher raw material costs and expenditure from the transition to BS-IV, down 210 basis points (bps) over a year. Higher raw material costs and stiff ...

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Business Standard
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