Bajaj Auto drops in volatile trade after Q3 results

The company announced the results during trading hours today, 16 January 2013.

Meanwhile, the BSE Sensex was down 64.28 points or 0.32% at 19,922.54.

On BSE, 93,000 shares were traded in the counter as against average daily volume of 34,035 shares in the past one quarter.

The stock witnessed post-result volatility. The stock dropped as much as 2.7% to a low of Rs 2,058 soon after the result hit the market in afternoon trade. The stock hit high of Rs 2,153 so far during the day. The stock had hit a record high of Rs 2,228.95 on 3 January 2013. The stock had hit a 52-week low of Rs 1,410 on 16 January 2012.

The stock had underperformed the market over the past one month till 15 January 2013, rising 1.68% compared with the Sensex's 3.47% rise. The scrip had, however, outperformed the market in past one quarter, jumping 20.83% as against Sensex's 6.8% surge.

The large-cap company has equity capital of Rs 289.37 crore. Face value per share is Rs 10.

Bajaj Auto said it has recorded its highest ever turnover, operating EBITDA, profit before tax and profit after tax in Q3 December 2012. Bajaj Auto's operating earnings before, interest, tax, depreciation, and amortization (EBITDA) rose 4% to a record Rs 1105 crore in Q3 December 2012 over Q3 December 2011. EBITDA margin declined to 20.1% in Q3 December 2012 from 21% in Q3 December 2011. The company's EBITDA margin is the best in the industry, Bajaj Auto said in a statement. EBITDA margin improved sequentially from 19.7% in Q2 September 2012 on account of richer product mix and better realization on exports, Bajaj Auto said.

Bajaj Auto's cash and cash equivalents stood at Rs 5374 crore as on 31 December 2012, higher than Rs 4521 crore as on 30 September 2012.

Bajaj Auto said that the launch of new exciting and differentiated products in the motorcycle segment helped the company partially address the slowdown in the domestic market. As a result, the company recorded a growth of 7% in domestic market, higher than the industry growth of 4%, Bajaj Auto said in a statement. In the international market, Africa continues to do well with Nigeria recording its highest ever motorcycle retails in December 2012, Bajaj Auto said. In other international markets, demand remained subdued, Bajaj Auto said. However, the company's market share in these countries has improved, Bajaj Auto added.

Bajaj Auto said the bigger and sportier motorcycles now contribute approximately 70% of total motorcycles sold.

During Q3 December 2012, the company recorded its highest ever three wheeler sales at over 1.41 lakh units, Bajaj Auto said. In three wheelers, Bajaj Auto recorded a growth of 23% in domestic market, higher than the industry growth of 13%. Growth in sales was led by the diesel passenger carrier segment, Bajaj Auto said in a statement. The company outperformed in the diesel passenger carrier segment, with a growth of 24% as against industry growth of 14%. Bajaj Auto said it continues to dominate the gasoline and alternate fuel domestic passenger segment with a market share of approximately 89%.

Bajaj Auto is India's second largest two-wheeler maker after Hero MotoCorp.

Powered by Capital Market - Live News