Turnover* – ` 6,356 crore PAT – ` 978 crore Operating EBITDA margin at 21.2%
A meeting of the Board of Directors of Bajaj Auto Limited was held today to consider and approve the results for Q1 / FY17.
Company has, for the first time, adopted Indian Accounting Standards (Ind-AS) for FY17 with Ind-AS compliant comparatives for FY16. Accordingly, figures for previous year/period have been re-cast and reviewed by statutory auditors as per new accounting standards.
The performance of the company has been highlighted below. Despite input cost pressures and continuing headwinds in export markets, the company has declared an industry high EBITDA of 21.2%.
The standalone profit after tax stands at ` 978 crore whereas consolidated profit after tax crosses ` 1,000 crore – ` 1,040 crore.
Performance highlights
| ` in crore | Q1
FY17 |
Q1
FY16 |
FY16 |
| A. Standalone results | |||
| Sales ( No’s ) | 994,733 | 1,013,029 | 3,893,581 |
| Turnover* | 6,356 | 6,188 | 24,957 |
| Operating EBITDA | 1,227 | 1,191 | 5,044 |
| Operating EBITDA % | 21.2 | 21.1 | 22.2 |
| Profit before tax | 1,366 | 1,368 | 5,547 |
| Profit after tax | 978 | 957 | 3,930 |
| B. Consolidated results | |||
| Consolidated profit after tax | 1,040 | 914 | 4,061 |
- Sales numbers
| Q1
FY17 |
Q1
FY16 |
Q4
FY16 |
Q on Q
Change |
Sequential
Change |
FY16 | ||
| Domestic | |||||||
| Motorcycles | 548,880 | 485,818 | 468,782 | 13% | 17% | 1,898,957 | |
| CV | 75,204 | 50,715 | 71,129 | 48% | 6% | 254,995 | |
| Sub-total | 624,084 | 536,533 | 539,911 | 16% | 16% | 2,153,952 | |
| Exports | |||||||
| Motorcycles | 323,660 | 389,417 | 283,737 | -17% | 14% | 1,459,295 | |
| CV | 46,989 | 87,079 | 48,810 | -46% | -4% | 280,334 | |
| Sub-total | 370,649 | 476,496 | 332,547 | -22% | 11% | 1,739,629 | |
| Total | |||||||
| Motorcycles | 872,540 | 875,235 | 752,519 | – | 16% | 3,358,252 | |
| CV | 122,193 | 137,794 | 119,939 | -11% | 2% | 535,329 | |
| Total | 994,733 | 1,013,029 | 872,458 | -2% | 14% | 3,893,581 | |
Performance of Q1 / FY17 is better appreciated on comparison with the sequential numbers for Q4 / FY16.
- Motorcycles
- Domestic motorcycles sales grew by 13% as against industry growth of 9%.
- While quarter on quarter growth stood at 13%, sequentially company sold ~548,000 vehicles as against ~468,000 – resulting in a growth of 17%.
- As a result, overall market share in domestic motorcycles improved to 19% in Q1 / FY17.
- The growth has been fuelled by the success of new products
- The iconic V15 motorcycle has been extremely well received by the market with sales of ~82,000 units in Q1
- Avenger continues it’s successful run with sales in excess of 56,000 during Q1
- The Pulsar and Avenger combined recorded a growth of 20% while the segment growth for the industry was 13%.
- KTM recorded a growth of 23%.
- Overall, Bajaj Auto remains a dominant player in segments which represent ~40% of the total domestic motorcycle market.
- Commercial Vehicle
- Sales in domestic market grew by 48% as against industry growth of 23%
- Sequentially, company sold ~75,000 vehicles as against ~71,000 in Q4 / FY16
- As a result, overall share in domestic market has improved from 47% in FY16 to 54% in Q1 / FY17
- Company continues to hold dominant share in domestic market in the In-city category; ~89%.
- Witnessed major gains in diesel segment; market share improved from 32% in FY16 to 35% in Q1 / FY17
- Market leader in small diesel carriers; share in domestic market at ~73% v/s ~65% in FY16.
- Share in domestic market of big diesel carriers at a healthy ~23% v/s ~20% in FY16.
- International Business
- Headwinds continue in export markets viz. Nigeria & Egypt. Decline in exports is attributable primarily to external factors – availability of foreign currency and depreciation in local currency.
- Exports sequentially grew from ~332,500 units in Q4 / FY16 to ~370,600 units in Q1 / FY17. However lower than ~476,000 units in Q1 / FY16.
- Company has improved its market shares in most of the export markets.
For Q1 / FY17, the average realization was ` 67.1 / USD as against ` 67.5 / USD in Q4 / FY16 and ` 63.9 / USD in Q1 / FY16.
- Results
Standalone :
- Despite input cost increase and lower exports, Company maintains industry leading EBITDA margin of 21.2% in Q1 / FY17.
- EBITDA increased to ` 1,227 crore in Q1 / FY17 v/s ` 1,191 crore in Q1 / FY16
Standalone profit before tax was ` 1,366 crore v/s ` 1,368 crore in Q1 / FY16
Profit after tax stood at ` 978 crore v/s ` 957 crore in Q1 / FY16
Consolidated :
- BAIH BV, a Netherlands based 100% subsidiary of Bajaj Auto Ltd, holds 47.99% stake in KTM AG.
In this quarter, BAIH BV received a dividend of Euro 2 per share ( Euro 10.4 million, i.e ` 78 crore ) declared by KTM AG for the calendar year 2015.
BAIH BV has not declared any dividend.
- Consolidated profit after tax increased to ` 1,040 crore v/s ` 914 crore in Q1 / FY16
- Cash and cash equivalents
Cash and cash equivalents as on 30th June 2016 stood at ` 10,701 crore as against ` 9,085 crore as on 31st March 2016.
