X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Bajaj Auto 1QFY01: Operating profit dips 16.7% - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jul 31, 2000

    Bajaj Auto 1QFY01: Operating profit dips 16.7%

    Bajaj Auto Ltd (BAL), India's largest two wheeler manufacturer has reported a net profit of Rs1,163 m for 1QFY01, an increase of 4.7% YoY. The company's sales grew by 15.9% YoY from Rs 8,003 m in the 1QFY00 to Rs 9,275 m in the 1QFY01. However due to higher expenses the company's operating profits fell by 16.7% YoY to Rs 986m in the 1QFY01.

    The company's other income grew by 19.4% YoY, to Rs 904m, and accounted for 62% of the company's profit before tax for the 1QFY01. This is higher as compared to 1QYF00, when other income accounted for 48% of the profit before tax. The higher other income in the 1QFY01 has helped in sprucing the company's net profit growth, which otherwise would have reported a fall. Operating margins have fallen to 10.6% YoY in the 1QFY01.

    (Rs m) 1QFY00 1QFY01 Change
    Sales 8,003 9,275 15.9%
    Other Income 757 904 19.4%
    Expenditure 6,819 8,289 21.6%
    Operating Profit (EBDIT) 1,184 986 -16.7%
    Operating Profit Margin (%) 14.8% 10.6%  
    Interest 5 11 119.6%
    Depreciation 345 416 20.6%
    Profit before Tax 1,591 1,463 -8.0%
    Other Adjustments - -  
    Tax 480 300 -37.5%
    Profit after Tax/(Loss) 1,111 1,163 4.7%
    Net profit margin (%) 13.9% 12.5%  
    No. of Shares (eoy) (m) 119.4 119.4  
    Diluted number of shares 119.4 119.4  
    Diluted Earnings per share* 37.2 39.0  
    *(annualised)      

    The company's overall sales went up due to higher volumes in the 1QFY01 by 9% YoY. This was mainly due to higher Japanese motorcycles which helped in pushing up the company's volumes. BAL has decided to take advantage of this boom in the motorcycle segment and is stepping up its capacity to 0.84m units by July 2001. However, scooter sales continue to decline.

    BAL's total volumes up 9% YoY in the 1QFY01
    (no. of units sold) 1QFY00 1QFY01 % change
    Scooters 169,134 143,300 -15.3%
    Sunny/Spirit 11,004 19,562 77.8%
    Step Thrus 34,295 37,779 10.2%
    Japanese Motorcycles 45,646 85,274 86.8%
    Three-wheelers 37,158 39,439 6.1%
    Total 297,237 325,354 9.5%

    The operating margins fell due to higher expenses on account of introduction of new models and higher marketing expenses. As motorcycles enjoy lower margins as compared to traditional scooters, this too has affected the company's margins.

    The company has been bogged down with issues of stock market related activities resulting in higher other income and declining scooter volumes. It also needs to increase its spends on research and development. On the positive side they have become more aggressive on the stepping up new models in the fast growing motorcycle segment.

    The company had recently announced its decision to buyback upto 15% of the company's equity capital. The company has now decided to bring down the buyback price to Rs 400 per share from the earlier Rs 450 per share. This has probably been done due to the dismal performance of the company's share price.

    On the current price of Rs 354, BAL is trading at 6.9x FY2000 EPS of Rs 51.4.

     

     

    Equitymaster requests your view! Post a comment on "Bajaj Auto 1QFY01: Operating profit dips 16.7%". Click here!

      
     

    More Views on News

    Tata Motors Ltd: Another Disappointing Quarter, Management fails to Perform! (Quarterly Results Update - Detailed)

    Aug 14, 2017

    Tata Motors Ltd disappoints again for both India and JLR business. Management commentary indicates a slow year ahead.

    Maruti Suzuki Ltd: Bumpy First Quarter. GST dents Margins! (Quarterly Results Update - Detailed)

    Aug 2, 2017

    GST realted cost impacts Margins, Management expects good year ahead.

    Hero Motocorp Ltd: Riding on the Scooters Growth, Maintains Margins! (Quarterly Results Update - Detailed)

    Aug 1, 2017

    Good Recovery in the Scooters market, expects pick up in exports too.

    Bajaj Auto Limited: Recovery in Exports but Domestic Disappoints! (Quarterly Results Update - Detailed)

    Aug 1, 2017

    New Export Markets picking up, Management expects good recovery in domestic Three wheeler market.

    Bajaj Auto Limited: Finishes the Year with Headwinds. Poised for a Recovery Ahead? (Quarterly Results Update - Detailed)

    Jul 6, 2017

    Ends the year on a Flat note. Expects good recovery in the exports market.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    BAJAJ HOLDINGS & INVSTMENT SHARE PRICE


    Aug 23, 2017 (Close)

    TRACK BAJAJ HOLDINGS & INVSTMENT

    • Track your investment in BAJAJ HOLDINGS & INVSTMENT with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    MARKET STATS