Capitaline

Results 19-Oct-23

Analysis

Bajaj Auto

NP up 17.48%

For quarter ended Sept 2023, consolidated Net sales (including other operating income) of Bajaj Auto has increased 6.23% to Rs 10838.24 crore compared to quarter ended Sept 2022. Sales of Automotive segment has gone up 5.91% to Rs 10,844.61 crore (accounting for 96.77% of total sales). Sales of Investments segment has gone up 21.86% to Rs 362.23 crore (accounting for 3.23% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 17.00% to Rs 2,590.56 crore. PBIT of Automotive segment rose 16.26% to Rs 2,228.83 crore (accounting for 86.04% of total PBIT). PBIT of Investments segment rose 21.75% to Rs 361.73 crore (accounting for 13.96% of total PBIT).

PBIT margin of Automotive segment rose from 18.72% to 20.55%. PBIT margin of Investments segment fell from 99.95% to 99.86%. Overall PBIT margin rose from 21.01% to 23.12%.

Operating profit margin has jumped from 17.15% to 19.65%, leading to 21.75% rise in operating profit to Rs 2,130.13 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 68.40% to 65.55%. Purchase of finished goods cost rose from 4.82% to 6.04%. Employee cost increased from 3.55% to 3.63%. Other expenses fell from 5.98% to 5.47%. Preoperation capitalised expenses rose from 0.04% to 0.05%.

Other income rose 10.41% to Rs 368.6 crore. PBIDT rose 19.93% to Rs 2498.73 crore. Provision for interest fell 40.11% to Rs 6.54 crore. Loan funds rose to Rs 125.04 crore as of 30 September 2023 from Rs 123.50 crore as of 30 September 2022. Inventories rose to Rs 1,554.00 crore as of 30 September 2023 from Rs 1,326.62 crore as of 30 September 2022. Sundry debtors were lower at Rs 2,089.95 crore as of 30 September 2023 compared to Rs 2,503.52 crore as of 30 September 2022. Cash and bank balance rose to Rs 1,360.14 crore as of 30 September 2023 from Rs 1,116.02 crore as of 30 September 2022. Investments rose to Rs 26,304.13 crore as of 30 September 2023 from Rs 22,785.68 crore as of 30 September 2022 .

PBDT rose 20.25% to Rs 2492.19 crore. Provision for depreciation rose 36.07% to Rs 91.82 crore. Fixed assets increased to Rs 2,976.30 crore as of 30 September 2023 from Rs 1,964.99 crore as of 30 September 2022. Intangible assets declined from Rs 44.43 crore to Rs 19.88 crore.

Profit before tax grew 19.71% to Rs 2,400.37 crore. Share of profit/loss was 7.31% lower at Rs 183.65 crore. Provision for tax was expense of Rs 563.97 crore, compared to Rs 483.78 crore. Effective tax rate was 21.83% compared to 21.96%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 17.48% to Rs 2,020.05 crore.

Equity capital decreased from Rs 283.65 crore as of 30 September 2022 to Rs 282.96 crore as of 30 September 2023 . Per share face Value remained same at Rs 10.00.

Promoters’ stake was 54.98% as of 30 September 2023 ,compared to 54.84% as of 30 September 2022 . Promoters pledged stake was 0.01% as of 30 September 2023 ,compared to 0.01% as of 30 September 2022 .

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

Net sales (including other operating income) of Bajaj Auto has increased 16.16% to Rs 21150.15 crore. Sales of Automotive segment has gone up 15.03% to Rs 21,160.23 crore (accounting for 96.76% of total sales). Sales of Investments segment has gone up 52.47% to Rs 709.62 crore (accounting for 3.24% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 27.56% to Rs 4,786.70 crore. PBIT of Automotive segment rose 24.05% to Rs 4,078.08 crore (accounting for 85.20% of total PBIT). PBIT of Investments segment rose 52.35% to Rs 708.62 crore (accounting for 14.80% of total PBIT).

PBIT margin of Automotive segment rose from 17.87% to 19.27%. PBIT margin of Investments segment fell from 99.94% to 99.86%. Overall PBIT margin rose from 19.90% to 21.89%.

Operating profit margin has jumped from 16.67% to 19.21%, leading to 33.81% rise in operating profit to Rs 4,062.40 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 67.71% to 65.57%. Purchase of finished goods cost rose from 5.24% to 6.03%. Employee cost decreased from 4.07% to 3.78%. Other expenses fell from 6.37% to 5.48%. Preoperation capitalised expenses rose from 0.05% to 0.12%.

Other income rose 10.13% to Rs 719.7 crore. PBIDT rose 29.61% to Rs 4782.1 crore. Provision for interest rose 22.08% to Rs 18.63 crore. Loan funds rose to Rs 125.04 crore as of 30 September 2023 from Rs 123.50 crore as of 30 September 2022. Inventories rose to Rs 1,554.00 crore as of 30 September 2023 from Rs 1,326.62 crore as of 30 September 2022. Sundry debtors were lower at Rs 2,089.95 crore as of 30 September 2023 compared to Rs 2,503.52 crore as of 30 September 2022. Cash and bank balance rose to Rs 1,360.14 crore as of 30 September 2023 from Rs 1,116.02 crore as of 30 September 2022. Investments rose to Rs 26,304.13 crore as of 30 September 2023 from Rs 22,785.68 crore as of 30 September 2022 .

PBDT rose 29.64% to Rs 4763.47 crore. Provision for depreciation rose 32.59% to Rs 179.05 crore. Fixed assets increased to Rs 2,976.30 crore as of 30 September 2023 from Rs 1,964.99 crore as of 30 September 2022. Intangible assets declined from Rs 44.43 crore to Rs 19.88 crore.

Profit before tax grew 29.53% to Rs 4,584.42 crore. Share of profit/loss was 7.31% lower at Rs 183.65 crore. Provision for tax was expense of Rs 1103.88 crore, compared to Rs 854.58 crore. Effective tax rate was 23.15% compared to 22.87%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 27.11% to Rs 3,664.19 crore.

Equity capital decreased from Rs 283.65 crore as of 30 September 2022 to Rs 282.96 crore as of 30 September 2023 . Per share face Value remained same at Rs 10.00.

Cash flow from operating activities increased to Rs 3,925.73 crore for YTD ended September 2023 from Rs 2,418.54 crore for YTD ended September 2022. Cash flow used in acquiring fixed assets during the YTD ended September 2023 stood at Rs 537.68 crore, compared to Rs 355.29 crore during the YTD ended September 2022.

Full year results analysis.

Net sales (including other operating income) of Bajaj Auto has increased 9.99% to Rs 36455.38 crore. Sales of Automotive segment has gone up 10.20% to Rs 36,665.03 crore (accounting for 97.40% of total sales). Sales of Investments segment has gone down 15.51% to Rs 977.87 crore (accounting for 2.60% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 2.89% to Rs 7,881.49 crore. PBIT of Automotive segment rose 6.14% to Rs 6,905.24 crore (accounting for 87.61% of total PBIT). PBIT of Investments segment fell 15.46% to Rs 976.25 crore (accounting for 12.39% of total PBIT).

PBIT margin of Automotive segment fell from 19.55% to 18.83%. PBIT margin of Investments segment rose from 99.77% to 99.83%. Overall PBIT margin fell from 22.25% to 20.94%.

Operating profit margin has jumped from 15.84% to 17.69%, leading to 22.87% rise in operating profit to Rs 6,450.53 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 67.27% to 65.85%. Purchase of finished goods cost fell from 5.98% to 5.88%. Employee cost decreased from 4.14% to 4.06%. Other expenses fell from 6.68% to 6.56%. Preoperation capitalised expenses rose from 0.04% to 0.08%.

Other income fell 7.52% to Rs 1187.52 crore. PBIDT rose 16.90% to Rs 7638.05 crore. Provision for interest rose 356.24% to Rs 39.51 crore. Loan funds rose to Rs 124.23 crore as of 31 March 2023 from Rs 122.77 crore as of 31 March 2022. Inventories rose to Rs 1,563.55 crore as of 31 March 2023 from Rs 1,230.51 crore as of 31 March 2022. Sundry debtors were higher at Rs 1,752.43 crore as of 31 March 2023 compared to Rs 1,516.38 crore as of 31 March 2022. Cash and bank balance declined from Rs 958.06 crore as of 31 March 2022 to Rs 690.48 crore as of 31 March 2023. Investments declined from Rs 26,634.12 crore as of 31 March 2022 to Rs 26,182.91 crore as of 31 March 2023.

PBDT rose 16.45% to Rs 7598.54 crore. Provision for depreciation rose 5.96% to Rs 285.85 crore. Fixed assets increased to Rs 2,896.80 crore as of 31 March 2023 from Rs 1,887.94 crore as of 31 March 2022. Intangible assets increased from Rs 25.32 crore to Rs 30.70 crore.

Profit before tax grew 16.90% to Rs 7,312.69 crore. Share of profit/loss was 8.67% lower at Rs 529.29 crore. Provision for tax was expense of Rs 1781.77 crore, compared to Rs 1485.81 crore. Effective tax rate was 22.72% compared to 19.42%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 1.71% to Rs 6,060.21 crore.

Equity capital decreased from Rs 289.37 crore as of 31 March 2022 to Rs 282.96 crore as of 31 March 2023 . Per share face Value remained same at Rs 10.00.

Promoters’ stake was 54.98% as of 31 March 2023 ,compared to 53.77% as of 31 March 2022 . Promoters pledged stake was 0.01% as of 31 March 2023 ,compared to 0.01% as of 31 March 2022 .

Cash flow from operating activities increased to Rs 5,277.42 crore for year ended March 2023 from Rs 4,197.21 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 1,074.47 crore, compared to Rs 550.75 crore during the year ended March 2022.

Other Highlights

In Q2 FY24, domestic two wheeler volume decreased 19% to 5,05,320 units compared to Q2 FY23. Domestic CV volume rose 81% to 1,32,236 units, exports two wheeler volume fell 5% to 3,76,263 units and exports CV volume fell 32% to 40,134 units on YoY basis.

In H1 FY24, domestic two wheeler volume increased 12% to 10,48,251 units compared to H1 FY23. Domestic CV volume rose 107% to 2,30,861 units, while exports two wheeler volume fell 22% to 7,22,662 units and exports CV volume fell 25% to 79,586 units on YoY basis.

Company generated over Rs 3600 crore of Free Cash Flow in H2 FY24, which is 1.6x higher compared to H1 FY23.

Bajaj Auto : Consolidated Results

	Quarter ended			Year to Date			Year ended
Particulars	202309	202209	Var.(%)	202309	202209	Var.(%)	202303	202203	Var.(%)
Net Sales (including other operating income)	10,838.24	10,202.71	6.23	21,150.15	18,207.61	16.16	36,455.38	33,144.71	9.99
OPM (%)	19.65	17.15	251 bps	19.21	16.67	253 bps	17.69	15.84	185 bps
OP	2,130.13	1,749.64	21.75	4,062.40	3,036.03	33.81	6,450.53	5,249.92	22.87
Other Inc.	368.60	333.85	10.41	719.70	653.49	10.13	1,187.52	1,284.14	-7.52
PBIDT	2,498.73	2,083.49	19.93	4,782.10	3,689.52	29.61	7,638.05	6,534.06	16.90
Interest	6.54	10.92	-40.11	18.63	15.26	22.08	39.51	8.66	356.24
PBDT	2,492.19	2,072.57	20.25	4,763.47	3,674.26	29.64	7,598.54	6,525.40	16.45
Depreciation	91.82	67.48	36.07	179.05	135.04	32.59	285.85	269.76	5.96
PBT	2,400.37	2,005.09	19.71	4584.42	3539.22	29.53	7312.69	6255.64	16.90
Share of Profit/(Loss) from Associates	183.65	198.13	-7.31	183.65	198.13	-7.31	529.29	579.53	-8.67
PBT before EO	2584.02	2203.22	17.28	4768.07	3737.35	27.58	7841.98	6835.17	14.73
EO Income	0	0	-	0	0	-	0	816.51	-
PBT after EO	2584.02	2203.22	17.28	4768.07	3737.35	27.58	7841.98	7651.68	2.49
Taxation	563.97	483.78	16.58	1103.88	854.58	29.17	1781.77	1485.81	19.92
PAT	2020.05	1719.44	17.48	3664.19	2882.77	27.11	6060.21	6165.87	-1.71
Minority Interest (MI)	0	0	-	0	0	-	0	0	-
Net profit	2020.05	1719.44	17.48	3664.19	2882.77	27.11	6060.21	6165.87	-1.71
P/(L) from discontinued operations net of tax	0	0	-	0	0	-	0	0	-
Net profit after discontinued operations	2020.05	1719.44	17.48	3664.19	2882.77	27.11	6060.21	6165.87	-1.71
EPS (Rs)*	71.39	60.77	17.48	129.50	101.88	27.11	214.17	195.11	9.77

* EPS is on current equity of Rs 282.96 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)	202309	202209	Var.(%)	% of (Total)	202309	202209	Var.(%)	% of (Total)	202303	202203	Var.(%)
Sales
Automotive	96.77	10,844.61	10,239.30	5.91	96.76	21,160.23	18,395.67	15.03	97.40	36,665.03	33,271.47	10.20
Investments	3.23	362.23	297.26	21.86	3.24	709.62	465.43	52.47	2.60	977.87	1,157.38	-15.51
Total Reported Sales	100.00	11,206.84	10,536.56	6.36	100.00	21,869.85	18,861.10	15.95	100.00	37,642.90	34,428.85	9.34
Less: Inter segment revenues		0.00	0.00	-		0.00	0.00		0.00	0.00	-
Net Sales	100.00	11,206.84	10,536.56	6.36	100.00	21,869.85	18,861.10	15.95	100.00	37,642.90	34,428.85	9.34
PBIT
Automotive	86.04	2,228.83	1,917.03	16.26	85.20	4,078.08	3,287.48	24.05	87.61	6,905.24	6,505.57	6.14
Investments	13.96	361.73	297.11	21.75	14.80	708.62	465.13	52.35	12.39	976.25	1,154.77	-15.46
Total PBIT	100.00	2,590.56	2,214.14	17.00	100.00	4,786.70	3,752.61	27.56	100.00	7,881.49	7,660.34	2.89
Less : Interest		6.54	10.92	-40.11		18.63	15.26	22.08		39.51	8.66	356.24
Add: Other un-allcoable		0.00	0.00	-		0.00	0.00	-		0.00	0.00	-
PBIT Margin(%)
Automotive		20.55	18.72	183.01		19.27	17.87	140.14		18.83	19.55	-71.97
Investments		99.86	99.95	-8.76		99.86	99.94	-7.65		99.83	99.77	5.98
PBT	100.00	2,584.02	2,203.22	17.28	100.00	4,768.07	3,737.35	27.58	100.00	7,841.98	7,651.68	2.49

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