Bajaj Auto slips after Q4 PAT declines 2% YoY to Rs 1526 cr

Bajaj Auto fell 2.13% to Rs 3822.70 after consolidated net profit declined 1.62% to Rs 1526.16 crore on 8.14% decline in net sales to Rs 7728.13 crore in Q4 March 2022 over Q4 March 2021.

Bajaj Auto's profit before tax (PBT) fell 16% to Rs 1638.88 crore in Q4 March 2022 over Q4 March 2021.

On a standalone basis, the company's net profit rose 10% to Rs 1,469 crore on 7% decline in total revenue from operations to Rs 7,975 crore during the period under review. Operating profit fell 11% to Rs 1,324 crore in Q4 March 2022 over Q4 March 2021.

EBITDA fell 10% year-on-year to Rs 1,396 crore in Q4 March 2022. EBITDA margin stood at 17.5% during the quarter, lower than 18.1% in the same quarter last year.

Sequentially, EBITDA margin improved from 15.6% in Q3 FY22 largely due to positive impact of price increase, deferral of material cost increase, improved US$ realization and favourable sales mix. It also improved due to the accrual of incentive receivable from the State Government of Maharashtra under Package Scheme of Incentive 2007 amounting to Rs 31 crore for the period April 2021 to March 2022.

In the year ended March 2022, the company's net profit rose 10% to Rs 5,019 crore on 19% decline in total revenue from operations to Rs 33,145 crore. EBITDA rose 6% year-on-year to Rs 5,389 crore in FY22.

The company's total auto sales fell 17% to 976,651 units in in Q4 March 2022 over Q4 March 2021. During the said period, domestic sales declined 27% and exports fell 8%.

The company said it continues to face severe supply chain challenges, especially in Q4 FY22, impacting sales of motorcycles and commercial vehicles.

On a full year basis, share for motorcycles sold in the domestic market marginally improved to 18.2%. Domestic commercial vehicle business recorded a growth of 47% as against industry growth of 21%. As a result share in domestic market stands at 62% (improved by 10.9% over FY21).

International business recorded its highest ever sales of over 25.06 lakh vehicles for FY22. With sales of over $2 billion, exports now contribute over 52% of the company's net sales.

The board recommended a dividend of Rs 140 per share for the financial year ended 31 March 2022. The record date for the dividend is set on 1 July 2022.

As on 31 March 2022, surplus cash and cash equivalents stood at Rs 19,090 crore as against Rs 17,689 crore as on 31 March 2021, after a dividend payout of Rs 4,051 crore.

Bajaj Auto is engaged in the business of development, manufacturing and distribution of automobiles such as motorcycles, commercial vehicles, electric two-wheelers etc. and parts thereof.

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