Bajaj Auto shrugs off weak Q4 numbers

Bajaj Auto rose 3.89% to Rs 2,234.20 at 12:26 IST on BSE after net profit fell 18.58% to Rs 622 crore on 4.35% decline in turnover to Rs 4894 crore in Q4 March 2015 over Q4 March 2014.

The Q4 result was announced during market hours today, 21 May 2015.

Meanwhile, the S&P BSE Sensex was down 54.25 points or 0.19% at 27,782.96.

On BSE, so far 1.52 lakh shares were traded in the counter as against average daily volume of 65,089 shares in the past one quarter.

The stock was volatile. The stock rose as much as 4.06% at the day's high of Rs 2,238 so far during the day. The stock fell as much as 1.23% at the day's low of Rs 2,124 so far during the day. The stock had hit a record high of Rs 2,690 on 24 November 2014. The stock had hit a 52-week low of Rs 1,844 on 20 May 2014.

The stock had outperformed the market over the past one month till 20 May 2015, surging 6.54% compared with Sensex's 0.18% fall. The scrip had also outperformed the market in past one quarter, sliding 2.66% as against Sensex's 4.77% fall.

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

Bajaj Auto's operating EBITDA (earnings before interest, taxation, depreciation and amortization) before mark-to-market (MTM) gain/loss declined 9.02% to Rs 937 crore in Q4 March 2015 over Q4 March 2014. Operating EBITDA margin stood at 19.4% in Q4 March 2015 as against 20.6% in Q4 March 2014. Bajaj Auto said that EBITDA margin declined on year-on-year basis in Q4 March 2015 largely due to one-off expenses. For one, there was an increase in employee costs. There was increase in employee costs due to increase in charge due to actuarial valuation for gratuity to Rs 90 crore from Rs 31 crore. Bajaj Auto also said that the company provided for loss on account of a fire incident at the company's Akurdi unit in January 2015 in Q4 March 2015.

With regard to motorcycles, Bajaj Auto said that the newly launched Pulsar RS 200 and Pulsar AS 200 models would see further gain the company's domestic motorcycle market share. Bajaj Auto also said that the newly launched CT100 model has been well received in the domestic market. With the success of CT100 and the new Pulsar models, April 2015 saw the company increase its share in domestic motorcycle market by over 300 basis points sequentially.

Bajaj Auto said that growth in the company's exports is back on track due to normalcy returning across major geographical markets where it exports its vehicles.

Bajaj Auto's cash and cash equivalents as on 31 March 2015 stood at Rs 8455 crore as against Rs 7759 crore as on 1 April 2014.

Bajaj Auto's board of directors recommended a dividend of Rs 50 per share for the year ended 31 March 2015.

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

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