Bajaj Auto rebounds post Q4 results

The board has recommended a dividend of Rs 50 per share (500%).

Shares of Bajaj Auto have moved higher by 4.3% to Rs 2,244, bouncing back nearly 6% from their intra-day lows on the NSE, although the company reported a 18.6% year-on-year decline in net profit at Rs 622 crore for the fourth quarter ended March 2015 (Q4) on higher other expenditure and employee benefit costs.

The two-wheelers manufacturer had posted a profit of Rs 764 crore in the same quarter last year.

During the recently concluded quarter, the total turnover declined 4.4% at Rs 4,894 crore as against Rs 5,117 crore in the corresponding quarter of the previous fiscal. EBITDA or operating profit margins were lower at 19.4% in Q4FY15 compared to 20.6% in the previous year's corresponding quarter.

Analysts on an average had expected profit of Rs 653 crore on revenues of Rs 4,547 crore.

“Q4 FY15 faced severe headwinds in various international markets on account of devaluation of local currency and state elections in Nigeria, availability of US$ for imports and other macroeconomic uncertainties,” Bajaj Auto said in a statement.

With normalcy returning across major geographical markets, growth in exports is back on track, the company added. The international business contributes over 46% of the company's net sales.

Meanwhile, the board of directors of the company has recommended a dividend of Rs 50 per share (500%) subject to approval of shareholders.

The stock had opened at Rs 2,144 and touched a a low of Rs 2,123 on the NSE before the announcement of Q4 results. A combined 1.6 million shares changed hands on the counter on the NSE and BSE till 1232 hours.