Bajaj Auto gains after PAT doubles in Q1 FY22

Bajaj Auto rose 2.12% to Rs 3986.85 after the company's standalone net profit doubled to Rs 1,061 crore in Q1 FY22 from Rs 528 crore in Q1 FY21.

Revenue from operations jumped 139.9% YoY to Rs 7,386 crore during the quarter.

As compared to Q4 FY21, the company's net profit and revenue from operations have declined 20.3% and 14.1%, respectively.

Bajaj Auto said that Q1 FY22 has been a challenging quarter; the recovery over the past three quarters got undone with the second wave of COVID-19 which again led to restrictions and full or partial lockdowns. This resulted in weaker domestic demand, which was partially off-set with strong exports across all major geographies.

EBITDA was at Rs 1,153 crore in Q1 FY22 as against Rs 441 crore in Q1 FY21 and Rs 1,558 crore in Q4 FY21.

EBITDA margin was at 15.6% as on 30 June 2021 compared with 14.3 as on 30 June 2020. EBITDA margin was at 18.1% as on 31 March 2021.

Bajaj Auto said that the decline in EBITDA margin was due lower revenue from operations which resulted in loss on spread of fixed costs by approximately 160 bps and increase in cost of raw-material, net of increase in prices, resulted in lower EBITDA margin by approximately 220 bps. Higher raw material costs were, however, partially off-set from higher US$ realization and improved mix.

As on 30th June 2021, surplus cash and cash equivalents stood at Rs 19,097 crore as against Rs 17,689 crore as on 31 March 2021.

The company's total vehicles sales increased 127% to 10,06,014 units in Q1 FY22 from 4,43,103 units in Q1 FY21. The vehicle sales are lower by 14% compared with 11,69,664 units sold in Q4 FY21.

While two-wheeler sales increased by 124.9% to 8,99,305 units, commercial vehicle (CV) sales jumped 147.2% to 1,06,709 units in Q1 FY22 over Q1 FY21. As compared with Q4 FY21, two-wheeler sales and CV sales have fallen 14.2% and 12.6%, respectively.

While the pandemic has impacted Q1 of FY21 and of FY22, the severity of impact was very different and hence, performance of the two quarters are not strictly comparable, the company said in a statement.

Bajaj Auto is the world's third largest manufacturer of motorcycles and the largest manufacturer of three wheelers. It has its manufacturing facilities located at Chakan near Pune, Waluj near Aurangabad, and at Pantnagar in Uttarakhand.

Powered by Capital Market - Live News