Bajaj Auto gains after Q2 FY22 PAT climbs 71% to Rs 2,040 cr

Bajaj Auto rose 1.40% to Rs 3,830.30 after the company's consolidated net profit jumped 70.84% to Rs 2,039.86 crore on a 22.44% surge in total revenue from operations to Rs 8,762.18 crore in Q2 September 2021 over Q2 September 2020.

On a standalone basis, the automobile manufacturer's net profit grew 12% to Rs 1,275 crore on a 22% increase in revenue from operations to Rs 8,762 crore in Q2 September 2021 over Q2 September 2020.

Turnover soared 22% to Rs 9,081 crore in Q2 FY22 from Rs 7,442 crore in Q2 FY21. EBITDA jumped 10% to Rs 1,434 crore in Q2 September 2021 as against Rs 1,300 crore in Q2 September 2020. EBITDA margin stood at 16.4% in Q2 FY22 as compared to 18.2% in Q2 FY21. Operating profit spurted 11% to Rs 1,367 crore in Q2 September 2021 over Rs 1,233 crore in Q2 September 2020.

During this tenure, the company witnessed two key developments. First, an increase in cost of raw-material, which was partially off-set with increase in prices. Second, Directorate General of Foreign Trade (DGFT) declared the rates towards Remission of Duties and Taxes on Exported Products (RoDTEP) and also allocated funds towards Merchandise Exports from India Scheme (MEIS). Bajaj Auto has accrued towards RoDTEP, Rs 82 crore for Q4 / FY21 & Q1 / FY22 and has recognised Rs 60 crore towards MEIS incentive for the period April to December 2020. As on 30 September 2021, after payment of dividend of Rs 4,051 crore, surplus cash and cash equivalents stood at Rs 17,526 crore as against Rs 19,097 crore as on 30 June 2021.

In terms of volumes, the number of two-wheelers rose 7% to 10.29 lakh units in Q2 FY22 as against 9.64 lakh units in Q2 FY21. Commercial Vehicles (CV) jumped 29% to 1.14 lakh units in Q2 September 2021 over 88,872 units in Q2 September 2020. The total number of vehicles produced (two-wheeler + CV) increased 9% to 11.44 lakh units in Q2 FY22 as compared to 10.53 lakh units in Q2 FY21.

Meanwhile, Bajaj Auto International Holdings BV (BAIH BV), a Netherlands based 100% subsidiary of Bajaj Auto, held 47.99% stake in KTM AG. BAIH BV, on 29 September 2021, swapped 46.5% stake in KTM AG for 49.9% stake in Pierer Bajaj AG. The resultant gain in fair value of Rs 501 crore has been considered as an exceptional item in consolidated profit after tax of Bajaj Auto.

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.

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