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: High taxes dent profits - Views on News from Equitymaster
StockSelect
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Bajaj Auto: High taxes dent profits
Nov 5, 2015

Bajaj Auto announced the second quarter results of financial year 2015-2016 (2QFY16). The company's revenues grew by 2% YoY during the quarter, while net profits were up by 58% YoY. Here is our analysis of the results.

Performance summary

  • Revenues grow by 2% YoY during the quarter with volumes remaining flat.
  • Operating margins improve by 2.7% YoY to 21.6% during 2QFY16. Thus, operating profits grow by 17% YoY for the quarter.
  • Excluding the extraordinary expense during 2QFY15, net profit growth is flat on account of higher tax expenses.

Financial performance: A snapshot

(Rs m) 2QFY15 2QFY16 Change 1HFY15 1HFY16 Change
Units sold 1,055,582 1,056,596 0.1% 2,044,012 2,069,625 1.3%
Net sales 59,631 60,978 2.3% 112,155 117,113 4.4%
Expenditure 48,363 47,807 -1.2% 91,636 92,545 1.0%
Operating profit (EBDITA) 11,268 13,171 16.9% 20,519 24,568 19.7%
EBDITA margin (%) 18.9% 21.6%   18.3% 21.0%  
Other income 1,136 1,526 34.4% 3,329 5,895 77.1%
Interest (net) 1 3 440.0% 2 4 118.8%
Depreciation 686 780 13.7% 1,378 1,564 13.5%
Profit before tax 11,717 13,915 18.8% 22,468 28,894 28.6%
Exceptional items (3,403) -   (3,403) -  
Tax 2,405 4,584 90.6% 5,756 9,416 63.6%
Profit after tax/(loss) 5,909 9,331 57.9% 13,309 19,479 46.4%
Net profit margin (%) 9.9% 15.3%   11.9% 16.6%  
No. of shares (m)       289.4 289.4  
Diluted earnings per share (Rs)*         118.6  
Price to earnings ratio (x)*         20.5  

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

To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report.
  2. Equitymaster has financial interest in the subject company.
  3. Equitymaster’s investment in the subject company is as per the guidelines prescribed by the Board of Directors of the Company. The investment is however made solely for building track record of its services.
  4. Equitymaster's Associates and Research Analyst or his/her relative doesn't have any financial interest in the subject company.
  5. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  6. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
  7. Equitymaster's technical team/ other research services have given a 'buy' view on the subject company.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the investor could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the investor could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the investor should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the investor could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

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 AUTO SHARE PRICE


Aug 18, 2017 (Close)

TRACK BAJAJ AUTO

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

BAJAJ AUTO 5-YR ANALYSIS

Detailed Financial Information With Charts

COMPARE BAJAJ AUTO WITH

MARKET STATS