Two and three-wheeler maker, Bajaj Auto Limited (Bajaj), on April 27 declared a 10.3 percent increase in its standalone profit after tax (PAT) to Rs 1,469 crore as compared to a profit of Rs 1,332 crore reported in the same quarter a year ago. On a sequential basis, the growth in PAT is 21 percent from Rs 1,214 crore reported in the previous quarter.
The profit for the quarter was aided by an exceptional income of Rs 315 crore towards incentive receivable from the State Government of Maharashtra for the period April 2015 to March 2021 and Rs 31 crore receivable for the period April 2021 to March 2022.
The revenues for the Pune-based automaker came in at Rs 7,975 crore, declining by 7.2 percent from the revenues of Rs 8,596 crore reported in the corresponding period last year. On a sequential basis, the revenues have tanked 11.6 percent from Rs 9,022 crore recorded in the October – December quarter of the current financial year.
The full-year profit for the company has improved 10.2 percent to Rs 5,019 crore from Rs 4,555 crore achieved in FY21.
Revenues for FY22 came in at Rs 33,145 crore, jumping by 19.5 percent from Rs 27,741 crore recorded in FY21.
EBITDA (earnings before interest, tax, depreciation, and amortization) for the quarter was lower by 10 percent on-year at Rs 1,396 crore as compared to Rs 1,558 crore. EBITDA margins for the quarter at 17.5 percent declined 60 bps on year but were up by 190 bps compared to 15.6 percent achieved during the previous quarter.
“These margins were better on a sequential basis due to the positive impact of price increase, deferral of material cost increase, improved dollar realization, and favourable sales mix”, said Dinesh Thapar, CFO of the company.
The volumes for the quarter stood at 9,76,651 units as compared to 11,69,664 units during the same period of last year. The company had sold 11,81,361 units in the quarter ended December 2021.
“The company continues to face severe supply chain challenges, especially in Q4FY22, impacting sales of motorcycles and commercial vehicles”, added Thapar.
The total two-wheeler (2W) sales for the company (including exports) during the quarter declined by 18 percent on the year. The company managed to sell 859,091 units of 2W during the quarter as compared to 10,47,632 units during the year-ago period.
On a full-year basis, however, there was an increase of 6 percent on the year. The total 2W units sold during the year stood at 38,36,856 compared to 36,05,893 units sold in FY21.
The commercial vehicle (CV) sales also witnessed a decline of 4 percent on-year during the quarter. The CV volumes stood at 1,17,560 as compared to 1,22,032 sold in the same quarter a year ago.
For the full year, the company sold 4,71,577 CV units compared to 3,67021 units sold during FY21, thereby registering a growth of 28 percent.
On a full-year basis, the share for motorcycles sold in the domestic market marginally improved to 18.2 percent. “Domestic commercial vehicle business recorded a growth of 47 percent as against industry growth of 21 percent, as a result of which, share in the domestic market stands at 62 percent (improved by 10.9 percent over FY21)”, added Thapar.
The international business recorded its highest ever sales of over 2.5 million vehicles for FY22. With sales of over $ 2 billion, exports now contribute over 52 percent of Bajaj Auto’s sales.
The company has recommended a dividend of Rs 140 per equity share (1400%) which is subject to the approval of shareholders.
The Bajaj Auto stock closed Rs 13.55 higher at Rs 3,905.65 on April 27 at the National Stock Exchange. The stock has generated returns of 3.1 percent during the past year and has gained 6.9 percent in the past month.