Capitaline

Results 14-Oct-22

Analysis

Bajaj Auto

Net profit down 15.71%

For quarter ended Sept 2022, consolidated, Net sales (including other operating income) of Bajaj Auto has increased 16.44% to Rs 10202.71 crore compared to quarter ended sept 2021. Sales of Automotive segment has gone up 16.94% to Rs 10,239.30 crore (accounting for 97.18% of total sales). Sales of Investments segment has gone down 8.42% to Rs 297.26 crore (accounting for 2.82% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has slumped 8.47% to Rs 2,214.14 crore. PBIT of Automotive segment fell 8.51% to Rs 1,917.03 crore (accounting for 86.58% of total PBIT). PBIT of Investments segment fell 8.26% to Rs 297.11 crore (accounting for 13.42% of total PBIT).

PBIT margin of Automotive segment fell from 23.93% to 18.72%. PBIT margin of Investments segment rose from 99.77% to 99.95%. Overall PBIT margin fell from 26.64% to 21.01%.

Operating profit margin has jumped from 15.98% to 17.15%, leading to 24.97% rise in operating profit to Rs 1,749.64 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 67.96% to 68.40%. Purchase of finished goods cost fell from 5.60% to 4.82%. Employee cost decreased from 4.05% to 3.55%. Other expenses fell from 6.34% to 5.98%. Preoperation capitalised expenses fell from 0.07% to 0.04%.

Other income rose 4.88% to Rs 333.85 crore. PBIDT rose 21.25% to Rs 2083.49 crore. Provision for interest rose 542.35% to Rs 10.92 crore. Loan funds rose to Rs 123.50 crore as of 30 September 2022 from Rs 122.12 crore as of 30 September 2021. Inventories rose to Rs 1,326.62 crore as of 30 September 2022 from Rs 1,185.68 crore as of 30 September 2021. Sundry debtors were lower at Rs 2,503.52 crore as of 30 September 2022 compared to Rs 2,605.11 crore as of 30 September 2021. Cash and bank balance rose to Rs 1,116.02 crore as of 30 September 2022 from Rs 610.91 crore as of 30 September 2021. Investments declined from Rs 24,863.31 crore as of 30 September 2021 to Rs 22,785.68 crore as of 30 September 2022.

PBDT rose 20.73% to Rs 2072.57 crore. Provision for depreciation rose 2.65% to Rs 67.48 crore. Fixed assets increased to Rs 1,964.99 crore as of 30 September 2022 from Rs 1,717.76 crore as of 30 September 2021. Intangible assets increased from Rs 36.31 crore to Rs 44.43 crore.

Profit before tax grew 21.45% to Rs 2,005.09 crore. Share of profit/loss was 25.31% lower at Rs 198.13 crore. Provision for tax was expense of Rs 483.78 crore, compared to Rs 377.59 crore. Effective tax rate was 21.96% compared to 15.62%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 15.71% to Rs 1,719.44 crore.

Equity capital decreased from Rs 289.37 crore as of 30 September 2021 to Rs 283.65 crore as of 30 September 2022 . Per share face Value remained same at Rs 10.00.

Promoters’ stake was 53.77% as of 30 September 2022 ,compared to 53.70% as of 30 September 2021 . Promoters pledged stake was 0.01% as of 30 September 2022 ,compared to 0.01% as of 30 September 2021 .

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Bajaj Auto has increased 12.75% to Rs 18207.61 crore. Sales of Automotive segment has gone up 13.78% to Rs 18,395.67 crore (accounting for 97.53% of total sales). Sales of Investments segment has gone down 25.82% to Rs 465.43 crore (accounting for 2.47% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has slumped 4.10% to Rs 3,752.61 crore. PBIT of Automotive segment fell 0.00% to Rs 3,287.48 crore (accounting for 87.61% of total PBIT). PBIT of Investments segment fell 25.67% to Rs 465.13 crore (accounting for 12.39% of total PBIT).

PBIT margin of Automotive segment fell from 20.33% to 17.87%. PBIT margin of Investments segment rose from 99.74% to 99.94%. Overall PBIT margin fell from 23.30% to 19.90%.

Operating profit margin has jumped from 15.59% to 16.67%, leading to 20.57% rise in operating profit to Rs 3,036.03 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 67.64% to 67.71%. Purchase of finished goods cost fell from 5.46% to 5.24%. Employee cost decreased from 4.48% to 4.07%. Other expenses fell from 6.66% to 6.37%.

Other income rose 0.91% to Rs 653.49 crore. PBIDT rose 16.55% to Rs 3689.52 crore. Provision for interest rose 282.46% to Rs 15.26 crore. Loan funds rose to Rs 123.50 crore as of 30 September 2022 from Rs 122.12 crore as of 30 September 2021. Inventories rose to Rs 1,326.62 crore as of 30 September 2022 from Rs 1,185.68 crore as of 30 September 2021. Sundry debtors were lower at Rs 2,503.52 crore as of 30 September 2022 compared to Rs 2,605.11 crore as of 30 September 2021. Cash and bank balance rose to Rs 1,116.02 crore as of 30 September 2022 from Rs 610.91 crore as of 30 September 2021. Investments declined from Rs 24,863.31 crore as of 30 September 2021 to Rs 22,785.68 crore as of 30 September 2022.

PBDT rose 16.21% to Rs 3674.26 crore. Provision for depreciation rose 3.91% to Rs 135.04 crore. Fixed assets increased to Rs 1,964.99 crore as of 30 September 2022 from Rs 1,717.76 crore as of 30 September 2021. Intangible assets increased from Rs 36.31 crore to Rs 44.43 crore.

Profit before tax grew 16.74% to Rs 3,539.22 crore. Share of profit/loss was 47.34% lower at Rs 198.13 crore. Provision for tax was expense of Rs 854.58 crore, compared to Rs 699.13 crore. Effective tax rate was 22.87% compared to 17.88%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 10.19% to Rs 2,882.77 crore.

Equity capital decreased from Rs 289.37 crore as of 30 September 2021 to Rs 283.65 crore as of 30 September 2022 . Per share face Value remained same at Rs 10.00.

Cash flow from operating activities increased to Rs 2,418.54 crore for YTD ended September 2022 from Rs 2,383.34 crore for YTD ended September 2021. Cash flow used in acquiring fixed assets during the YTD ended September 2022 stood at Rs 355.29 crore, compared to Rs 109.89 crore during the YTD ended September 2021.

Full year results analysis.

Net sales (including other operating income) of Bajaj Auto has increased 19.48% to Rs 33144.71 crore. Sales of Automotive segment has gone up 19.90% to Rs 33,271.47 crore (accounting for 96.64% of total sales). Sales of Investments segment has gone down 8.68% to Rs 1,157.38 crore (accounting for 3.36% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 22.60% to Rs 7,660.34 crore. PBIT of Automotive segment rose 30.53% to Rs 6,505.57 crore (accounting for 84.93% of total PBIT). PBIT of Investments segment fell 8.66% to Rs 1,154.77 crore (accounting for 15.07% of total PBIT).

PBIT margin of Automotive segment rose from 17.96% to 19.55%. PBIT margin of Investments segment rose from 99.75% to 99.77%. Overall PBIT margin rose from 21.53% to 22.25%.

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 .

Cash flow from operating activities increased to Rs 4,197.21 crore for year ended March 2022 from Rs 3,119.88 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 550.75 crore, compared to Rs 259.59 crore during the year ended March 2021.

Other Highlights

As on 30 September 2022, the Company bought 5,712,259 number of equity shares from the stock exchange at a volume weighted average buyback price of Rs 3,939.39 per share comprising 1.97% of the pre-buyback number of shares of the Company. The buyback resulted in a cash outflow of Rs 2,250 crore (excluding transaction cost and tax on buyback). An amount of Rs 524.22 crore was paid towards tax on buyback.

The company’s surplus cash stood at Rs 15,538 crores as at 30 Sept 2022, post pay-outs of almost Rs 7,000 crores towards dividend and buyback.

In Q2 FY23, domestic two wheeler volume rose 27% to 621,124 units compared to Q2 FY22. Domestic CV volume rose 60% to 73,241 units, exports two wheeler volume fell 27% to 397,900 units and exports CV volume fell 17% to 70,424 units on YoY basis.

Chetak maintains its steady expansion as it grows sales volumes, has a robust order book, and is made available through an expanded network of dealers across 39 cities.

Bajaj Auto : Consolidated Results

	Quarter ended			Year to Date			Year ended
Particulars	202209	202109	Var.(%)	202209	202109	Var.(%)	202203	202103	Var.(%)
Net Sales (including other operating income)	10,202.71	8,762.18	16.44	18,207.61	16,148.22	12.75	33,144.71	27,741.08	19.48
OPM (%)	17.15	15.98	117 bps	16.67	15.59	108 bps	15.84	17.75	-191 bps
OP	1,749.64	1,400.08	24.97	3,036.03	2,518.04	20.57	5,249.92	4,924.68	6.60
Other Inc.	333.85	318.32	4.88	653.49	647.62	0.91	1,284.14	1,276.46	0.60
PBIDT	2,083.49	1,718.40	21.25	3,689.52	3,165.66	16.55	6,534.06	6,201.14	5.37
Interest	10.92	1.70	542.35	15.26	3.99	282.46	8.66	6.66	30.03
PBDT	2,072.57	1,716.70	20.73	3,674.26	3,161.67	16.21	6,525.40	6,194.48	5.34
Depreciation	67.48	65.74	2.65	135.04	129.96	3.91	269.76	259.37	4.01
PBT	2,005.09	1,650.96	21.45	3539.22	3031.71	16.74	6255.64	5935.11	5.40
Share of Profit/(Loss) from Associates	198.13	265.26	-25.31	198.13	376.22	-47.34	579.53	306.32	89.19
PBT before EO	2203.22	1916.22	14.98	3737.35	3407.93	9.67	6835.17	6241.43	9.51
EO Income	0	501.23	-	0	501.23	-	816.51	0	-
PBT after EO	2203.22	2417.45	-8.86	3737.35	3909.16	-4.40	7651.68	6241.43	22.59
Taxation	483.78	377.59	28.12	854.58	699.13	22.23	1485.81	1384.41	7.32
PAT	1719.44	2039.86	-15.71	2882.77	3210.03	-10.19	6165.87	4857.02	26.95
Minority Interest (MI)	0	0	-	0	0	-	0	0	-
Net profit	1719.44	2039.86	-15.71	2882.77	3210.03	-10.19	6165.87	4857.02	26.95
P/(L) from discontinued operations net of tax	0	0	-	0	0	-	0	0	-
Net profit after discontinued operations	1719.44	2039.86	-15.71	2882.77	3210.03	-10.19	6165.87	4857.02	26.95
EPS (Rs)*	59.42	56.21	5.71	99.62	97.04	2.66	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

Bajaj Auto : Consolidated Segment Results

td>-

	Quarter ended				Year to Date				Year ended
	% of (Total)	202209	202109	Var.(%)	% of (Total)	202209	202109	Var.(%)	% of (Total)	202203	202103	Var.(%)
Sales
Automotive	97.18	10,239.30	8,755.90	16.94	97.53	18,395.67	16,168.42	13.78	96.64	33,271.47	27,750.12	19.90
Investments	2.82	297.26	324.60	-8.42	2.47	465.43	627.42	-25.82	3.36	1,157.38	1,267.42	-8.68
Total Reported Sales	100.00	10,536.56	9,080.50	16.04	100.00	18,861.10	16,795.84	12.30	100.00	34,428.85	29,017.54	18.65
Less: Inter segment revenues		0.00	0.00	-		0.00	0.00		0.00	0.00	-
Net Sales	100.00	10,536.56	9,080.50	16.04	100.00	18,861.10	16,795.84	12.30	100.00	34,428.85	29,017.54	18.65
PBIT
Automotive	86.58	1,917.03	2,095.30	-8.51	87.61	3,287.48	3,287.38	0	84.93	6,505.57	4,983.82	30.53
Investments	13.42	297.11	323.85	-8.26	12.39	465.13	625.77	-25.67	15.07	1,154.77	1,264.27	-8.66
Total PBIT	100.00	2,214.14	2,419.15	-8.47	100.00	3,752.61	3,913.15	-4.10	100.00	7,660.34	6,248.09	22.60
Less : Interest		10.92	1.70	542.35		15.26	3.99	282.46		8.66	6.66	30.03
Add: Other un-allcoable		0.00	0.00	-		0.00	0.00	-		0.00	0.00	-
PBIT Margin(%)
Automotive		18.72	23.93	-520.79		17.87	20.33	-246.12		19.55	17.96	159.34
Investments		99.95	99.77	18.06		99.94	99.74	19.85		99.77	99.75	2.30
PBT	100.00	2,203.22	2,417.45	-8.86	100.00	3,737.35	3,909.16	-4.40	100.00	7,651.68	6,241.43	22.59

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