Bajaj Auto slips after Q2 PAT declines 22% YoY

Bajaj Auto fell 1.10% to Rs 2,983 after consolidated net profit fell 21.62% to Rs 1,193.97 crore on 7.15% decrease in total revenue from operations to Rs 7,155.86 crore in Q2 September 2020 over Q2 September 2019.

Consolidated profit before tax (PBT) skid 10.92% to Rs 1,540.83 crore in Q2 September 2020 as against Rs 1,729.81 crore in Q2 September 2019. Total tax expense for the quarter jumped 68% to Rs 346.86 crore as against Rs 206.46 crore in Q2 September 2019. The Q2 result was declared during market hours today, 22 October 2020.

Due to the COVID-19 pandemic, the company has experienced adverse impact. With gradual resumption of operations, plants have started moving towards normalcy, though challenges still exist. While Bajaj Auto continues to work very closely with all the stakeholders, the situation continues to be still evolving, it said.

On a standalone basis, profit after tax fell 19% to Rs 1,138 crore and revenue from operations declined 7% to Rs 7,156 crore during the period under review. EBITDA was almost flat at Rs 1300 crore in Q2 September 2020 compared with Rs 1305 crore in Q2 September 2019. EBITDA margin stood at 18.2% in Q2 September 2020, higher than 16.9% in Q2 September 2019.

The company's total auto sales fell 10% to 10,53,337 units in Q2 September 2020 over Q2 September 2019. Domestic auto sales fell 9% to 573,586 units while auto exports declined 12% to 479,751 units during the period under review. The company's total two-wheeler sales slipped 2% to 9.64 lakh units in Q2 FY21 as against 9.84 lakh units in Q2 FY20. Commercial vehicles sales tanked 53% to 88,872 units in Q2 FY21 as against 1.89 lakh units in Q2 FY20.

Export continued to perform well and September was the highest ever month at 2,12,000 units. Strong revival of demand was witnessed in Latin America and Africa while ASEAN continues to be weak and Sri Lanka has stopped all vehicle imports. The growth in LATAM is driven by the sports segment - Pulsar and Dominar.

As on 30 September 2020, surplus cash and cash equivalents stood at Rs 16,240 crore as against Rs 14,232 crore as on 30 June 2020 and Rs 14,322 crore as on 31 March 2020. Bajaj Auto manufactures of motorcycles, three-wheelers and parts.

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