Capitaline

Results 16-Jul-24

Analysis

Bajaj Auto

NP up 18.10%

For quarter ended June 2024, consolidated Net sales (including other operating income) of Bajaj Auto has increased 15.71% to Rs 11932.07 crore compared to quarter ended June 2023. Sales of Automotive segment has gone up 14.90% to Rs 11,852.69 crore (accounting for 96.62% of total sales). Sales of Investments segment has gone down 4.07% to Rs 333.25 crore (accounting for 2.72% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 17.69% to Rs 2,584.57 crore. PBIT of Automotive segment rose 24.28% to Rs 2,298.34 crore (accounting for 88.93% of total PBIT). PBIT of Investments segment fell 3.98% to Rs 333.10 crore (accounting for 12.89% of total PBIT).

PBIT margin of Automotive segment rose from 17.93% to 19.39%. PBIT margin of Investments segment rose from 99.86% to 99.95%. Overall PBIT margin rose from 20.60% to 21.07%.

Operating profit margin has jumped from 18.74% to 19.87%, leading to 22.68% rise in operating profit to Rs 2,370.44 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 65.59% to 63.09%. Purchase of finished goods cost fell from 6.03% to 5.97%. Employee cost increased from 3.94% to 4.18%. Other expenses rose from 5.49% to 6.59%. Preoperation capitalised expenses fell from 0.19% to 0.06%.

Other income fell 4.49% to Rs 335.32 crore. PBIDT rose 18.50% to Rs 2705.76 crore. Provision for interest rose 288.50% to Rs 46.97 crore.

PBDT rose 17.06% to Rs 2658.79 crore. Provision for depreciation rose 8.92% to Rs 95.01 crore.

Profit before tax grew 17.39% to Rs 2,563.78 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 621.99 crore, compared to Rs 539.91 crore. Effective tax rate was 24.26% compared to 24.72%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 18.10% to Rs 1,941.79 crore.

Promoters’ stake was 55.06% as of 30 June 2024 ,compared to 54.98% as of 30 June 2023 . Promoters pledged stake was 0.01% as of 30 June 2024 ,compared to 0.01% as of 30 June 2023 .

Full year results analysis.

Net sales (including other operating income) of Bajaj Auto has increased 23.08% to Rs 44870.43 crore. Sales of Automotive segment has gone up 22.38% to Rs 44,870.14 crore (accounting for 96.90% of total sales). Sales of Investments segment has gone up 45.18% to Rs 1,419.66 crore (accounting for 3.07% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 28.15% to Rs 10,100.40 crore. PBIT of Automotive segment rose 26.11% to Rs 8,708.15 crore (accounting for 86.22% of total PBIT). PBIT of Investments segment rose 45.21% to Rs 1,417.60 crore (accounting for 14.04% of total PBIT).

PBIT margin of Automotive segment rose from 18.83% to 19.41%. PBIT margin of Investments segment rose from 99.83% to 99.85%. Overall PBIT margin rose from 20.94% to 21.81%.

Operating profit margin has jumped from 17.69% to 19.53%, leading to 35.83% rise in operating profit to Rs 8,761.56 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 65.85% to 65.12%. Purchase of finished goods cost rose from 5.88% to 6.01%. Employee cost decreased from 4.06% to 3.62%. Other expenses fell from 6.56% to 5.76%. Preoperation capitalised expenses rose from 0.08% to 0.11%.

Other income rose 20.93% to Rs 1436.02 crore. PBIDT rose 33.51% to Rs 10197.58 crore. Provision for interest rose 52.77% to Rs 60.36 crore. Loan funds rose to Rs 1,911.74 crore as of 31 March 2024 from Rs 124.23 crore as of 31 March 2023. Inventories rose to Rs 1,688.75 crore as of 31 March 2024 from Rs 1,563.55 crore as of 31 March 2023. Sundry debtors were higher at Rs 2,075.53 crore as of 31 March 2024 compared to Rs 1,752.43 crore as of 31 March 2023. Cash and bank balance rose to Rs 955.32 crore as of 31 March 2024 from Rs 690.48 crore as of 31 March 2023. Investments rose to Rs 28,086.68 crore as of 31 March 2024 from Rs 26,182.91 crore as of 31 March 2023 .

PBDT rose 33.41% to Rs 10137.22 crore. Provision for depreciation rose 27.61% to Rs 364.77 crore. Fixed assets increased to Rs 3,224.59 crore as of 31 March 2024 from Rs 2,896.80 crore as of 31 March 2023. Intangible assets declined from Rs 30.70 crore to Rs 27.88 crore.

Profit before tax grew 33.64% to Rs 9,772.45 crore. Share of profit/loss was 49.44% lower at Rs 267.59 crore. Provision for tax was expense of Rs 2331.8 crore, compared to Rs 1781.77 crore. Effective tax rate was 23.23% compared to 22.72%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 27.19% to Rs 7,708.24 crore.

Equity capital decreased from Rs 282.96 crore as of 31 March 2023 to Rs 279.18 crore as of 31 March 2024 . Per share face Value remained same at Rs 10.00.

Promoters’ stake was 55.06% as of 31 March 2024 ,compared to 54.98% as of 31 March 2023 . Promoters pledged stake was 0.01% as of 31 March 2024 ,compared to 0.01% as of 31 March 2023 .

Cash flow from operating activities increased to Rs 6,558.16 crore for year ended March 2024 from Rs 5,277.42 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 706.45 crore, compared to Rs 1,074.47 crore during the year ended March 2023.

Other Highlights

In Q1 FY25, the company’s electric portfolio (e2W, e3W) comprised 14% of domestic revenue.

In Q1 FY25, domestic two-wheeler volume increased 7% to 5,42,931 units compared to Q1 FY24. Domestic CV volume rose 10% to 98,635 units, exports two-wheeler volume increased 6% to 3,68,420 units and exports CV volume increased 9% to 43,015 units on YoY basis.

Bajaj Auto : Consolidated Results

	Quarter ended			Year ended
Particulars	202406	202306	Var.(%)	202403	202303	Var.(%)
Net Sales (including other operating income)	11,932.07	10,311.91	15.71	44,870.43	36,455.38	23.08
OPM (%)	19.87	18.74	113 bps	19.53	17.69	183 bps
OP	2,370.44	1,932.27	22.68	8,761.56	6,450.53	35.83
Other Inc.	335.32	351.10	-4.49	1,436.02	1,187.52	20.93
PBIDT	2,705.76	2,283.37	18.50	10,197.58	7,638.05	33.51
Interest	46.97	12.09	288.50	60.36	39.51	52.77
PBDT	2,658.79	2,271.28	17.06	10,137.22	7,598.54	33.41
Depreciation	95.01	87.23	8.92	364.77	285.85	27.61
PBT	2,563.78	2,184.05	17.39	9772.45	7312.69	33.64
Share of Profit/(Loss) from Associates	0	0	-	267.59	529.29	-49.44
PBT before EO	2563.78	2184.05	17.39	10040.04	7841.98	28.03
EO Income	0	0	-	0	0	-
PBT after EO	2563.78	2184.05	17.39	10040.04	7841.98	28.03
Taxation	621.99	539.91	15.20	2331.8	1781.77	30.87
PAT	1941.79	1644.14	18.10	7708.24	6060.21	27.19
Minority Interest (MI)	0	0	-	0	0	-
Net profit	1941.79	1644.14	18.10	7708.24	6060.21	27.19
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	1941.79	1644.14	18.10	7708.24	6060.21	27.19
EPS (Rs)*	69.55	58.89	18.10	276.10	217.07	27.19

* EPS is on current equity of Rs 279.18 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Bajaj Auto : Consolidated Segment Results

	Quarter ended				Year ended
	% of (Total)	202406	202306	Var.(%)	% of (Total)	202403	202303	Var.(%)
Sales
Automotive	96.62	11,852.69	10,315.62	14.90	96.90	44,870.14	36,665.03	22.38
Investments	2.72	333.25	347.39	-4.07	3.07	1,419.66	977.87	45.18
Financing	0.66	81.45	0.00	-
Total Reported Sales	100.00	12,267.39	10,663.01	15.05	100.00	46,306.45	37,642.90	23.02
Less: Inter segment revenues		0.00	0.00	-		0.00	0.00	-
Net Sales	100.00	12,267.39	10,663.01	15.05	100.00	46,306.45	37,642.90	23.02
PBIT
Automotive	88.93	2,298.34	1,849.25	24.28	86.22	8,708.15	6,905.24	26.11
Investments	12.89	333.10	346.89	-3.98	14.04	1,417.60	976.25	45.21
Financing	-1.81	-46.87	0.00	-
Total PBIT	100.00	2,584.57	2,196.14	17.69	100.00	10,100.40	7,881.49	28.15
Less : Interest		20.79	12.09	71.96		60.36	39.51	52.77
Add: Other un-allcoable		0.00	0.00	-		0.00	0.00	-
PBIT Margin(%)
Automotive		19.39	17.93	146.42		19.41	18.83	57.41
Investments		99.95	99.86	9.89		99.85	99.83	2.06
Financing		-57.54	0.00	-5,754.45		-152.25	0.00	-15,225.23
PBT	100.00	2,563.78	2,184.05	17.39	100.00	10,040.04	7,841.98	28.03

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