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Bajaj Auto: Exports take a beating - Views on News from Equitymaster
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Bajaj Auto: Exports take a beating
Feb 10, 2016

Bajaj Auto announced the third quarter results of financial year 2015-2016 (3QFY16). The company's revenues fell by 2% YoY during the quarter, while net profits were up by 5% YoY. Here is our analysis of the results..

Performance summary

  • Revenues fall by 2% YoY during the quarter as volumes decline by 3% YoY.
  • Operating margins contract by 0.7% YoY to 21% during 3QFY16. Thus, operating profits fall by 4.5% YoY for the quarter.
  • Led by the surge in other income, net profits grow by 5% YoY.

Financial performance: A snapshot

(Rs m) 3QFY15 3QFY16 Change 9mFY15 9mFY16 Change
Units sold 984,520 951,498 -3.4% 3,028,532 3,021,123 -0.2%
Net sales 56,572 55,649 -1.6% 168,727 172,762 2.4%
Expenditure 44,303 43,936 -0.8% 135,939 136,482 0.4%
Operating profit (EBDITA) 12,268 11,713 -4.5% 32,787 36,280 10.7%
EBDITA margin (%) 21.7% 21.0%   19.4% 21.0%  
Other income 953 1,997 109.6% 4,282 7,891 84.3%
Interest (net) 1 1 0.0% 2 4 82.6%
Depreciation 658 746 13.5% 2,036 2,311 13.5%
Profit before tax 12,563 12,962 3.2% 35,031 41,857 19.5%
Exceptional items - -   (3,403) -  
Tax 3,950 3,947 -0.1% 9,707 13,363 37.7%
Profit after tax/(loss) 8,612 9,015 4.7% 21,921 28,494 30.0%
Net profit margin (%) 15.2% 16.2%   13.0% 16.5%  
No. of shares (m)       289.4 289.4  
Diluted earnings per share (Rs)*         120.0  
Price to earnings ratio (x)*         19.8  

*(On a trailing 12-month basis, adjusted for extraordinary items)

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