Capitaline

Results 27-Apr-22

Analysis

Bajaj Auto

Net Profit down 1.62%

For quarter ended March 2022, consolidated net sales (including other operating income) of Bajaj Auto has declined 7.23% to Rs 7974.84 crore compared to quarter ended March 2021.
Operating profit margin has declined from 17.70% to 17.06%, leading to 10.59% decline in operating profit to Rs 1,360.68 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 65.96% to 65.57%. Purchase of finished goods cost rose from 6.74% to 6.87%. Employee cost increased from 3.48% to 3.78%. Other expenses rose from 6.65% to 7.04%. Preoperation capitalised expenses fell from 0.06% to 0.03%.

Other income rose 1.85% to Rs 288.86 crore. PBIDT fell 8.64% to Rs 1649.54 crore. Provision for interest rose 41.18% to Rs 2.88 crore. Loan funds rose to Rs 122.77 crore as of 31 March 2022 from Rs 121.46 crore as of 31 March 2021. Inventories declined from Rs 1,493.89 crore as of 31 March 2021 to Rs 1,230.51 crore as of 31 March 2022. Sundry debtors were lower at Rs 1,516.38 crore as of 31 March 2022 compared to Rs 2,716.85 crore as of 31 March 2021. Cash and bank balance rose to Rs 958.06 crore as of 31 March 2022 from Rs 538.84 crore as of 31 March 2021. Investments rose to Rs 26,634.12 crore as of 31 March 2022 from Rs 24,686.65 crore as of 31 March 2021 .

PBDT fell 8.69% to Rs 1646.66 crore. Provision for depreciation rose 5.42% to Rs 69.83 crore. Fixed assets increased to Rs 1,887.94 crore as of 31 March 2022 from Rs 1,636.23 crore as of 31 March 2021. Intangible assets declined from Rs 47.30 crore to Rs 25.32 crore.

Profit before tax down 9.23% to Rs 1,576.83 crore. Share of profit/loss was 71.99% lower at Rs 62.05 crore. Provision for tax was expense of Rs 428 crore, compared to Rs 407.42 crore. Effective tax rate was 21.90% compared to 20.80%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 1.62% to Rs 1,526.16 crore.

Equity capital stood at Rs 289.37 crore as of 31 March 2022 to Rs 289.37 crore as of 31 March 2021. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 53.77% as of 31 March 2022 ,compared to 53.70% as of 31 March 2021 . Promoters pledged stake was 0.01% as of 31 March 2022 ,compared to 0.01% as of 31 March 2021 .

Full year results analysis.

Net sales (including other operating income) of Bajaj Auto has increased 19.48% to Rs 33144.71 crore. Operating profit margin has declined from 17.75% to 15.84%, leading to 6.60% rise in operating profit to Rs 5,249.92 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 65.48% to 67.27%. Purchase of finished goods cost rose from 5.44% to 5.98%. Employee cost decreased from 4.61% to 4.14%. Other expenses fell from 6.86% to 6.68%.

Other income rose 0.60% to Rs 1284.14 crore. PBIDT rose 5.37% to Rs 6534.06 crore. Provision for interest rose 30.03% to Rs 8.66 crore. Loan funds rose to Rs 122.77 crore as of 31 March 2022 from Rs 121.46 crore as of 31 March 2021. Inventories declined from Rs 1,493.89 crore as of 31 March 2021 to Rs 1,230.51 crore as of 31 March 2022. Sundry debtors were lower at Rs 1,516.38 crore as of 31 March 2022 compared to Rs 2,716.85 crore as of 31 March 2021. Cash and bank balance rose to Rs 958.06 crore as of 31 March 2022 from Rs 538.84 crore as of 31 March 2021. Investments rose to Rs 26,634.12 crore as of 31 March 2022 from Rs 24,686.65 crore as of 31 March 2021 .

PBDT rose 5.34% to Rs 6525.4 crore. Provision for depreciation rose 4.01% to Rs 269.76 crore. Fixed assets increased to Rs 1,887.94 crore as of 31 March 2022 from Rs 1,636.23 crore as of 31 March 2021. Intangible assets declined from Rs 47.30 crore to Rs 25.32 crore.

Profit before tax grew 5.40% to Rs 6,255.64 crore. Share of profit/loss was 89.19% higher at Rs 579.53 crore. Provision for tax was expense of Rs 1485.81 crore, compared to Rs 1384.41 crore. Effective tax rate was 19.42% compared to 22.18%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 26.95% to Rs 6,165.87 crore.

Equity capital stood at Rs 289.37 crore as of 31 March 2022 to Rs 289.37 crore as of 31 March 2021. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 53.77% as of 31 March 2022 ,compared to 53.70% as of 31 March 2021 . Promoters pledged stake was 0.01% as of 31 March 2022 ,compared to 0.01% as of 31 March 2021 .

Other Highlights

The Board of Directors recommend a dividend of Rs 140 per share on face value of Rs 10 each for the financial year ended 31 March 2022. Record Date fixed for the purpose is 1 July 2022.

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

In Q4 FY22, domestic two wheeler volume fell 30% to 3,39,100 units compared to Q4 FY21. Domestic CV volume rose 8% to 52,055 units, exports two wheeler volume fell 7% to 5,19,991 units and exports CV volume fell 11% to 67,505 units on YoY basis.

In FY22, domestic two wheeler volume fell 9% to 16,41,084 units compared to FY21. Domestic CV volume rose 47% to 1,60,723 units, exports two wheeler volume rose 22% to 21,95,772 units and exports CV volume rose 21% to 257,729 units on YoY basis.

In FY22, Domestic Commercial Vehicle business recorded a growth of 47% as against industry growth of 21 %. International business recorded its highest ever sales of over 25 lakh vehicles for FY22. With sales of over US$ 2 billion (approx Rs 15,000 crore), exports now contribute over 52% of Net sales.

Bajaj Auto : Consolidated Results

	Quarter ended			Year ended
Particulars	202203	202103	Var.(%)	202203	202103	Var.(%)
Net Sales (including other operating income)	7,974.84	8,596.10	-7.23	33,144.71	27,741.08	19.48
OPM (%)	17.06	17.70	-64 bps	15.84	17.75	-191 bps
OP	1,360.68	1,521.88	-10.59	5,249.92	4,924.68	6.60
Other Inc.	288.86	283.60	1.85	1,284.14	1,276.46	0.60
PBIDT	1,649.54	1,805.48	-8.64	6,534.06	6,201.14	5.37
Interest	2.88	2.04	41.18	8.66	6.66	30.03
PBDT	1,646.66	1,803.44	-8.69	6,525.40	6,194.48	5.34
Depreciation	69.83	66.24	5.42	269.76	259.37	4.01
PBT	1,576.83	1,737.20	-9.23	6255.64	5935.11	5.40
Share of Profit/(Loss) from Associates	62.05	221.5	-71.99	579.53	306.32	89.19
PBT before EO	1638.88	1958.7	-16.33	6835.17	6241.43	9.51
EO Income	315.28	0	-	816.51	0	-
PBT after EO	1954.16	1958.7	-0.23	7651.68	6241.43	22.59
Taxation	428	407.42	5.05	1485.81	1384.41	7.32
PAT	1526.16	1551.28	-1.62	6165.87	4857.02	26.95
Minority Interest (MI)	0	0	-	0	0	-
Net profit	1526.16	1551.28	-1.62	6165.87	4857.02	26.95
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	1526.16	1551.28	-1.62	6165.87	4857.02	26.95
EPS (Rs)*	44.31	53.61	-17.35	190.79	167.85	13.67

* EPS is on current equity of Rs 289.37 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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