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Bajaj Auto Ltd.

BSE: 532977 Sector: Auto
NSE: BAJAJ-AUTO ISIN Code: INE917I01010
BSE 00:00 | 27 May 3830.45 -26.90
(-0.70%)
OPEN

3850.00

HIGH

3889.90

LOW

3823.10

NSE 00:00 | 27 May 3833.05 -24.30
(-0.63%)
OPEN

3875.00

HIGH

3890.00

LOW

3823.05

OPEN 3850.00
PREVIOUS CLOSE 3857.35
VOLUME 8233
52-Week high 4347.95
52-Week low 3028.35
P/E 23.17
Mkt Cap.(Rs cr) 110,842
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3850.00
CLOSE 3857.35
VOLUME 8233
52-Week high 4347.95
52-Week low 3028.35
P/E 23.17
Mkt Cap.(Rs cr) 110,842
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bajaj Auto Ltd. (BAJAJ-AUTO) - Chairman Speech

Company chairman speech

CHAIRMAN'S LETTER

Dear Shareholder

Who could have dreamt of the human and economic calamities that theworld is going through because of a virus called Covid-19? Nothing of this global scalehas ever occurred before.

As I write this letter to you over 141 million people have been struckby the disease and more than 3 million have perished. In India as we are battling thesecond wave of the virus — a wave that is more severe than the first — Covid-19has claimed more than 14.8 million cases and some 177150 deaths.

Everything suggests that in epidemiological terms things will getworse before getting better.

After the full national lockdown during 25 March to 30 April 2020 andpartial lockdown that continued in varying stages up to 30 November 2020 things weregradually moving for the better. Subsequent to the first and second quarters of FY2021— when real GDP crashed by 24.4% followed by another 7.3% — we were beginning tosee some green shoots of recovery. October-December 2020 showed a small but positive GDPgrowth of 0.4%. We were looking forward to another quarter of positive growth inJanuary-March 2021.

With the second wave that started in March 2021 I doubt whether wewill see that growth. More worryingly I am concerned about Q1 FY2022 and what a series ofstate-wide lockdowns might do to businesses and economic growth.

In such disheartening circumstances your Company has done quite wellin not only limiting its downside but also in posting relatively healthy results. Let mebriefly share these.

• Net sales for FY2021 was RS. 27133 crore. Despite a decline of6.8% it was the third highest sales in Bajaj Auto's history.

• Operating earnings before interest tax depreciation andamortisation (EBITDA) was RS. 5063 crore — a reduction of 3.6% versus the previousyear.

• Operating EBITDA margin was 18.3% of net sales and otheroperating income versus 17.6% in the previous year — representing an increase of 70basis points in this Covid-19 year.

• lThough operating profit declined by 4.1% to RS. 4797 crorethe operating profit margin was 17.3% of net sales and other operating income. This was 60basis points higher than FY2020.

• Profit before tax (PBT) declined by 9.7% to RS. 5939 croreBajaj Auto's third highest ever.

• Profit after tax (PAT) decreased by 10.7% to RS. 4555 crore.This was the Company's third highest PAT.

• Surplus cash and cash equivalent as on 31 March 2021 increasedby 23.5% to RS. 17689 crore.

Given the circumstances I believe that these are creditable results.Your managing director Rajiv Bajaj his team and every employee of your Company should becollectively congratulated for the tremendous efforts that they have made in the mostdifficult year that our country has witnessed.

Personally I am delighted with the introduction of the new Chetak— a best-in-class electric scooter with an iconic design. When booking for the Chetakwas first rolled out in early 2020 it had to be stopped on account of Covid-19 relatedsupply chain disruptions.

Thereafter your Company re-opened online bookings on 13 April 2021 buthad to stop just 48 hours later owing to an overwhelming response. I expect to see yourCompany delivering this iconic model in FY2022.

To each of us in Bajaj Auto our people are our greatest assets. I amproud to say that amidst this pandemic your Company has walked the extra mile to ensurehealth and safety for all employees. As it is doing even now.

Let us hope that rapidly accelerated vaccinations coupled with a strictenforcement of masks and social distancing will soon bring the second wave under control.

Let us also hope that we do not react to the epidemic by declaring morelockdowns as we did the last time. For these will destroy business employment and theeconomy without necessarily controlling the spread of the disease.

I have been your Company's Chairman since the last 49 years. Giventhat I am getting along it is the time for change and to pass the mantle on to a youngerperson. I am happy to announce that your Board has unanimously approved Niraj Bajaj as thenext Chairman of Bajaj Auto. I wish him well and am sure that he will do an excellent job.

That being so this is my last Chairman's Letter to you. Though Ishan't write to you through this forum any further rest assured that you and yourCompany will forever remain in my heart.

Stay safe. Vaccinate yourselves. Remain protected.

God bless you and your family.
Yours sincerely
Rahul Bajaj
Chairman
29 April 2021

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