(Rs m) | 3QFY06 | 3QFY07 | Change | 9mFY06 | 9mFY07 | Change |
Units sold | 601,324 | 738,219 | 22.8% | 1,661,900 | 2,093,438 | 26.0% |
Net sales | 20,009 | 25,682 | 28.4% | 55,020 | 72,069 | 31.0% |
Expenditure | 16,428 | 22,046 | 34.2% | 45,707 | 61,174 | 33.8% |
Operating profit (EBDITA) | 3,581 | 3,636 | 1.5% | 9,313 | 10,895 | 17.0% |
EBDITA margin (%) | 17.9% | 14.2% | 16.9% | 15.1% | ||
Other income | 1,064 | 1,610 | 51.3% | 3,354 | 3,979 | 18.7% |
Interest (net) | 1 | 2 | 57.1% | 3 | 30 | 953.6% |
Depreciation | 491 | 472 | -3.8% | 1,443 | 1,445 | 0.2% |
Profit before tax | 4,153 | 4,771 | 14.9% | 11,221 | 13,400 | 19.4% |
Extraordinary income/(expense) | (118) | (120) | (143) | (362) | ||
Tax | 1,245 | 1,200 | -3.6% | 3,315 | 3,750 | 13.1% |
Profit after tax/(loss) | 2,790 | 3,452 | 23.7% | 7,763 | 9,288 | 19.6% |
Net profit margin (%) | 13.9% | 13.4% | 14.1% | 12.9% | ||
No. of shares (m) | 101.2 | 101.2 | 101.2 | 101.2 | ||
Diluted earnings per share (Rs)* | 110.3 | 136.5 | 102.3 | 122.4 | ||
Price to earnings ratio (x)** | 22.0 |
Domestic | 3QFY06 | 3QFY07 | % change | 9mFY06 | 9mFY07 | % change |
Motorcycles | 467,280 | 578,265 | 23.8% | 1,267,297 | 1,620,541 | 27.9% |
Scooter/scooterette | 28,932 | 173 | -99.4% | 94,229 | 11,482 | -87.8% |
3 Wheelers | 40,253 | 44,162 | 9.7% | 123,609 | 135,686 | 9.8% |
Total | 536,465 | 622,600 | 16.1% | 1,485,135 | 1,767,709 | 19.0% |
Exports | ||||||
Motorcycles | 43,826 | 74,141 | 69.2% | 112,779 | 223,114 | 97.8% |
Scooter/scooterette | 3,214 | - | n.a. | 8,227 | 1,103 | -86.6% |
3 Wheelers | 17,819 | 41,478 | 132.8% | 55,759 | 101,512 | 82.1% |
Total | 64,859 | 115,619 | 78.3% | 176,765 | 325,729 | 84.3% |
Grand total | 601,324 | 738,219 | 22.8% | 1,661,900 | 2,093,438 | 26.0% |
Motorcycles – Continue to surprise: The 28% YoY growth in topline was powered by a 23% YoY growth in total volumes, where like the previous quarter, domestic sales constituted 84% of total units sold and managed to grow by 16% YoY. Exports once again recorded a stellar performance, growing at a strong 78% YoY and forming 16% of total sales as against 11% during the same quarter last year. It should be noted that the company's motorcycles have gained immense popularity in some key Latin American and African markets and as a result, exports have seen some real spurt in recent times. Further, after setting up assembly units in Indonesia and Nigeria, the company is also planning to set up a third assembly plant in China, the largest two-wheeler market in the world. If successful, this is likely to give further boost to the company's volumes.
Motorcycle sales, which accounted for 93% of domestic sales and 64% of exports, continued with their dream run by notching up growth of 24% YoY and 69% YoY in the domestic and exports segments respectively. This is significantly higher than the industry growth rate of 11% YoY and 42% YoY in both the markets under consideration. The success of its ‘Platina' in the entry-level segment has ensured that the company now has successful products straddled across all the three segments of motorcycles and this seems to be aiding its market share-gaining streak. With competitors furiously breathing down its neck, it remains to be seen how far the streak will last.
On the three-wheeler front, Bajaj Auto continued to witness robust growth in exports as they improved by a huge 133% YoY, while domestic sales grew at a much muted 10% YoY.
Motorcycles market share | ||
Margin woes continue: Raw material costs as a percentage of sales have increased by 360 basis points (3.6%), and this is once again the primary reason why the company's operating margins have contracted by 370 basis points. Had it not been for the savings on the wages front, the fall in operating margins would have been even higher. The fall in margins could also be attributed to a shift in its product mix towards price and value segment bikes, where realisations are on the lower side as compared to the premium segment bikes. The intensifying competition also makes it difficult for the company to pass on hikes in raw material costs to the end user.
(Rs m) | 3QFY06 | 3QFY07 | Change | 9mFY06 | 9mFY07 | Change |
Raw materials | 13,979 | 18,856 | 34.9% | 38,385 | 52,092 | 35.7% |
% sales | 69.9% | 73.4% | 69.8% | 72.3% | ||
Staff cost | 676 | 757 | 12.1% | 2,060 | 2,339 | 13.6% |
% sales | 3.4% | 2.9% | 3.7% | 3.2% | ||
Other expenditure | 1,774 | 2,433 | 37.2% | 5,263 | 6,743 | 28.1% |
% sales | 8.9% | 9.5% | 9.6% | 9.4% |
The other income has improved by a sizeable 51% and this has really helped lend some respectability to its bottomline numbers. As mentioned earlier, if one excludes impact of the same, the jump in net profit stands at a mere 4%, highlighting the kind of inflationary pressure the company's performance is under.