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Bajaj Auto: A healthy fourth quarter - Views on News from Equitymaster
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Bajaj Auto: A healthy fourth quarter
Jun 10, 2016 | Updated on Jun 11, 2016

Bajaj Auto announced the fourth quarter results of financial year 2015-2016 (4QFY16). The company posted a 14% YoY and 29% YoY growth in revenues and net profits respectively. Here is our analysis of the results.

  • Revenues grow 14% YoY during the quarter as volumes rise by 11.5% YoY.
  • Operating margins expand substantially by 3.6% YoY to 21.3% during 4QFY16. Thus, operating profits grow by 37.5% YoY for the quarter.
  • Net profit growth is lower than operating profit growth at 29% YoY on account of lower other income and higher tax expenses.

    Financial performance: A snapshot
    (Rs m) 4QFY15 4QFY16 Change FY15 FY16 Change
    Units sold 782,669 872,458 11.5% 3,811,201 3,893,581 2.2%
    Net sales 47,393 54,114 14.2% 216,120 226,876 5.0%
    Expenditure 39,015 42,598 9.2% 174,955 179,080 2.4%
    Operating profit (EBDITA) 8,378 11,516 37.5% 41,166 47,796 16.1%
    EBDITA margin (%) 17.7% 21.3% 19.0% 21.1%
    Other income 1,543 1,241 -19.5% 5,824 9,133 56.8%
    Interest (net) 63 1 -99.0% 65 5 -92.6%
    Depreciation 638 761 19.3% 2,674 3,072 14.9%
    Profit before tax 9,220 11,996 30.1% 44,251 53,852 21.7%
    Exceptional items 0 0 -3,403 0
    Tax 3,004 3,965 32.0% 12,711 17,328 36.3%
    Profit after tax/(loss) 6,216 8,031 29.2% 28,137 36,524 29.8%
    Net profit margin (%) 13.1% 14.8% 13.0% 16.1%
    No. of shares (m) 289.4 289.4
    Diluted earnings per share (Rs)* 126.2
    Price to earnings ratio (x)* 20.5

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

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