Bajaj Auto Q1 net jumps 37% at Rs 1,015 cr
Average realisation per unit during the quarter improved to Rs 55,000 compared to Rs 53,000 clocked in the same quarter last year
 "Bajaj Auto Q1 net jumps 37% at Rs 1,015 cr")
In the quarter ended March, 2011, net profit of the company had reached Rs 1,400 crore but it was aided by an exceptional item of Rs 827 crore. Other income during the reporting quarter nearly doubled to Rs 437 crore, helped by dividend income from Austria’s KTM for 2013 and 2014.
S Ravikumar, head business development, said, “Our market share at the retail level has improved to 19.2 per cent by the end of June quarter. With the new Avenger due in Q3, new Pulsars have been very well received and the Discover 125 launched recently domestic volumes are expected to go up.” Bajaj’s market share in the motorcycle segment at the wholesale level is at 18 per cent.
Bajaj was able to maintain its EBITDA margins above its historical quarterly average of 20 per cent. For the reporting quarter the margins closed at 20.3 per cent. Better US Dollar realisation of Rs 63.9 as against Rs 62.8 recorded in the final quarter last year and Rs 61.8 in FY15.
Net sales, however, were below street estimates at Rs 5,505 crore, a growth of 7 per cent compared to Rs 5,133 crore clocked during the same period last year. Bloomberg expected net sales to be at Rs 6,129 crore.
Investors reacted negatively post the results announcement with the stock finally closing 5.02 per cent down on the Bombay Stock Exchange at Rs 2,487.75 as against its yesterday's closing of Rs 2,619.10.
The company clocked absolute sales increase of 2.48 per cent to 1,013,029 units of two and three-wheelers during the quarter as compared to 988,430 units sold in the same quarter last year. "Product mix seems significantly inferior to our estimates", said an Emkay Research report.
Resumption of two and three-wheeler orders from Nigeria, Egypt and Sri Lanka after a minor upset in the fourth quarter of last year, saw export revenue jump by 17 per cent in the first quarter. "We have confirmed orders for 48,000 bike from Nigeria", added Ravikumar. In Q1 389,000 units were exported contributing 47 per cent of the net sales.
In the domestic market the company launched the Discover 125 in an attempt to fine tune the troubled brand. Demand for Discover branded products has been on a free fall for more than a year even as market leader Hero Motorcorp and Honda has strengthened its presence in economy segment.
Cash and cash equivalents of Bajaj Auto crossed Rs 10,000 crore for the first time as by the end of last quarter it stood at Rs 10,234 crore, a 21 per cent increase over Rs 8,455 crore.