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Bajaj Auto slips after Q1 PAT tumbles 53%

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Bajaj Auto fell 1.73% to Rs 2952.25 after the two wheeler major's net profit dropped 53% to Rs 528.04 crore on 60% decline in revenue from operations to Rs 3079.24 crore in Q1 June 2020 over Q1 June 2019.

Profit before tax (PBT) stood at Rs 681.67 crore in Q1FY21, tumbling 57% from Rs 1578.78 crore in the same period last year. Total tax expense declined 66% year on year to Rs 153.63 crore in Q1FY21.

EBITDA stood at Rs 441 crore in Q1FY21, falling 65% from Rs 1250 crore in Q1FY20. EBITDA margin declined to 14.3% in Q1FY21 from 16.1% in Q1FY20.

"The COVID pandemic is unprecedented and the company has also experienced its adverse impact. With gradual resumption of operations, plants have started moving towards normalcy, though challenges still exist. While the company continues to work very closely with all the stakeholders, the situation continues to be still evolving," the company said.

It added that lockdown and other containment/precautionary measures have resulted in disrupted supply lines and a sharp decline in overall demand. Impact of this pandemic was experienced in countries across the globe. While the firm has restarted operations, sporadic localised lockdowns are disrupting the supply chain and impacting the ability of the business to return towards normalcy, it added.

Total vehicles sales slumped 64.47% to 443103 units in Q1FY21 from 1247174 units in Q1FY20.

Sales in the domestic motorcycle market was Nil for the entire month of April and impacted for a large part of May 2020. The month of June 2020 witnessed a decent recovery and performance of Bajaj Auto was better than the industry. The company's overall share in the domestic motorcycle market was 20.7% in Q1FY21 as against 18.5% in Q1FY20.

Domestic market of commercial vehicles was severely impacted due to the pandemic. The industry recorded a decline of 91%. Bajaj Auto's share in domestic market was 42.6% for Q1FY21.

In international business, Bajaj Auto recorded sales of over 251,000 units in Q1 June 2020. In value terms, exports were $217 million or Rs 1651 crore. The auto company said overall export by volume recorded a decline of 54% during the quarter as against Q1FY20.

As on 30 June 2020, surplus cash and cash equivalents stood at Rs 14,232 crore as against Rs 14,322 crore as on 31 March 2020.

Bajaj Auto manufactures of motorcycles, three-wheelers and parts.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, July 22 2020. 12:27 IST