Capitaline

Results 26-Apr-23

Analysis

Bajaj Auto

NP up 11.70%

For quarter ended March 2023, consolidated Net sales (including other operating income) of Bajaj Auto has increased 11.97% to Rs 8929.23 crore compared to quarter ended Mar 2022. Sales of Automotive segment has gone up 11.72% to Rs 8,927.65 crore (accounting for 97.12% of total sales). Sales of Investments segment has gone down 2.80% to Rs 265.08 crore (accounting for 2.88% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 11.18% to Rs 2,175.88 crore. PBIT of Automotive segment rose 13.50% to Rs 1,911.97 crore (accounting for 87.87% of total PBIT). PBIT of Investments segment fell 3.15% to Rs 263.91 crore (accounting for 12.13% of total PBIT).

PBIT margin of Automotive segment rose from 21.08% to 21.42%. PBIT margin of Investments segment fell from 99.92% to 99.56%. Overall PBIT margin fell from 23.68% to 23.67%.

Operating profit margin has jumped from 17.06% to 18.56%, leading to 21.79% rise in operating profit to Rs 1,657.21 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 65.57% to 64.11%. Purchase of finished goods cost fell from 6.87% to 6.81%. Employee cost increased from 3.78% to 4.15%. Other expenses fell from 7.04% to 6.83%. Preoperation capitalised expenses rose from 0.03% to 0.14%.

Other income fell 8.78% to Rs 263.5 crore. PBIDT rose 16.44% to Rs 1920.71 crore. Provision for interest rose 447.57% to Rs 15.77 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 15.69% to Rs 1904.94 crore. Provision for depreciation rose 8.82% to Rs 75.99 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 15.99% to Rs 1,828.95 crore. Share of profit/loss was 433.70% higher at Rs 331.16 crore. Provision for tax was expense of Rs 455.37 crore, compared to Rs 428 crore. Effective tax rate was 21.08% compared to 21.90%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 11.70% to Rs 1,704.74 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 .

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

Board recommended a dividend of Rs 140 per share (1400%) of face value of Rs 10 each on equity shares for the financial year ended 31 March 2023. Record Date fixed for the purpose is 30th June 2023. Dividend will be credited on or around 28th July 2023.

In Q4 FY23, domestic two wheeler volume increased 22% to 414,990 units compared to Q4 FY22. Domestic CV volume rose 100% to 100,033 units, exports two wheeler volume fell 40% to 310,415 units and exports CV volume fell 49% to 34,290 units on YoY basis.

In FY23, domestic two wheeler volume went up 10% to 18,05,883 units compared to FY22. Domestic CV volume rose 87% to 300,734 units, exports two wheeler volume fell 25% to 16,36,956 units and exports CV volume fell 41% to 184,284 units on YoY basis.

Bajaj Auto : Consolidated Results

	Quarter ended			Year ended
Particulars	202303	202203	Var.(%)	202303	202203	Var.(%)
Net Sales (including other operating income)	8,929.23	7,974.84	11.97	36,455.38	33,144.71	9.99
OPM (%)	18.56	17.06	150 bps	17.69	15.84	185 bps
OP	1,657.21	1,360.68	21.79	6,450.53	5,249.92	22.87
Other Inc.	263.50	288.86	-8.78	1,187.52	1,284.14	-7.52
PBIDT	1,920.71	1,649.54	16.44	7,638.05	6,534.06	16.90
Interest	15.77	2.88	447.57	39.51	8.66	356.24
PBDT	1,904.94	1,646.66	15.69	7,598.54	6,525.40	16.45
Depreciation	75.99	69.83	8.82	285.85	269.76	5.96
PBT	1,828.95	1,576.83	15.99	7312.69	6255.64	16.90
Share of Profit/(Loss) from Associates	331.16	62.05	433.70	529.29	579.53	-8.67
PBT before EO	2160.11	1638.88	31.80	7841.98	6835.17	14.73
EO Income	0	315.28	-	0	816.51	-
PBT after EO	2160.11	1954.16	10.54	7841.98	7651.68	2.49
Taxation	455.37	428	6.39	1781.77	1485.81	19.92
PAT	1704.74	1526.16	11.70	6060.21	6165.87	-1.71
Minority Interest (MI)	0	0	-	0	0	-
Net profit	1704.74	1526.16	11.70	6060.21	6165.87	-1.71
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	1704.74	1526.16	11.70	6060.21	6165.87	-1.71
EPS (Rs)*	60.25	45.31	32.95	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

	Quarter ended				Year ended
	% of (Total)	202303	202203	Var.(%)	% of (Total)	202303	202203	Var.(%)
Sales
Automotive	97.12	8,927.65	7,990.99	11.72	97.40	36,665.03	33,271.47	10.20
Investments	2.88	265.08	272.71	-2.80	2.60	977.87	1,157.38	-15.51
Total Reported Sales	100.00	9,192.73	8,263.70	11.24	100.00	37,642.90	34,428.85	9.34
Less: Inter segment revenues		0.00	0.00	-		0.00	0.00	-
Net Sales	100.00	9,192.73	8,263.70	11.24	100.00	37,642.90	34,428.85	9.34
PBIT
Automotive	87.87	1,911.97	1,684.54	13.50	87.61	6,905.24	6,505.57	6.14
Investments	12.13	263.91	272.50	-3.15	12.39	976.25	1,154.77	-15.46
Total PBIT	100.00	2,175.88	1,957.04	11.18	100.00	7,881.49	7,660.34	2.89
Less : Interest		15.77	2.88	447.57		39.51	8.66	356.24
Add: Other un-allcoable		0.00	0.00	-		0.00	0.00	-
PBIT Margin(%)
Automotive		21.42	21.08	33.58		18.83	19.55	-71.97
Investments		99.56	99.92	-36.44		99.83	99.77	5.98
PBT	100.00	2,160.11	1,954.16	10.54	100.00	7,841.98	7,651.68	2.49

Previous News

Market snaps 3-day winning streak; Nifty holds 22,450; VIX drops 3.55%
( Market Commentary - Quick Review 02-Apr-24 15:59 )

Market hit fresh record high, rallies for 3rd day; Nifty closes above 23,850
( Market Commentary - Quick Review 26-Jun-24 15:48 )

Bajaj Auto
( Results - Analysis 19-Oct-23 10:16 )

Bajaj Auto Ltd gains for third consecutive session
( Hot Pursuit - 04-Mar-24 13:05 )

Bajaj Auto's subsidiary commences operations at new facility in Brazil
( Hot Pursuit - 26-Jun-24 13:06 )

Bajaj Auto Ltd down for fifth straight session
( Hot Pursuit - 19-Jun-23 13:35 )

Uno Minda Ltd Spikes 1.3%
( Hot Pursuit - 10-May-23 09:30 )

Bajaj Auto to hold board meeting
( Corporate News - 01-Jul-23 10:58 )

Bajaj Auto announces board meeting date
( Corporate News - 29-Mar-23 10:47 )

Bajaj Auto announces board meeting date
( Corporate News - 30-Dec-23 10:23 )

Sensex climbs 380 pts; European mkt opens higher
( Market Commentary - Mid-Session 01-Jul-24 13:33 )