How did you find the Bajaj Auto numbers for the Dec-21 quarter?
Answer
Answer
It was a tough quarter overall for Bajaj Auto as the company took a hit on domestic 2-wheeler volumes in the Dec-21 quarter. However, price hikes managed to keep rupee sales robust in the quarter even as CV sales were higher to compensate for the fall in 2-wheeler sales. Bottom line got impacted by the sharp spike in operating costs in the quarter.
Bajaj Auto Ltd
Rs in Crore
Dec-21
Dec-20
YOY
Sep-21
QOQ
Total Income (Rs cr)
₹ 9,021.65
₹ 8,909.88
1.25%
₹ 8,762.18
2.96%
Operating Profit (Rs cr)
₹ 1,442.49
₹ 1,824.60
-20.94%
₹ 1,599.60
-9.82%
Net Profit (Rs cr)
₹ 1,429.68
₹ 1,716.26
-16.70%
₹ 2,039.86
-29.91%
Diluted EPS (Rs)
₹ 49.40
₹ 59.30
₹ 70.50
OPM
15.99%
20.48%
18.26%
Net Margins
15.85%
19.26%
23.28%
Let us look at top line first, For Dec-21 quarter, Bajaj Auto Ltd reported 1.25% yoy growth in total revenues as prices offset a sharp fall in domestic volumes. During the December 2021 quarter, total volumes for Bajaj Auto overall stood at 11,81,361 units. This included domestic 2-wheeler sales of 471,284 units and 2-wheeler exports of 577,261 units plus some domestic and international sales of commercial vehicles or CVs.
The 2 wheeler volumes were lower by -12% due to supply chain constraints and out here, it was exports that saved the day. For example, domestic volumes fell -16%, while the export volumes fell by just -5%. This made the overall figure look OK and surprisingly, Bajaj Auto also improved its domestic market share during the quarter. Domestic CV volumes were up 52% but then that is on a much smaller base, so not too reflective.
Operating profits were down -20.94% in the Dec-21 quarter and even on a quarter on quarter basis, the profits were lower by -9.2%. Lower operating profits was on account of higher input costs and steep inventory costs resulting in inventory efficiency losses. As a result , the Operating margins fell from 20.48% in Dec-20 quarter to 15.99% while net margins fell from 19.26% to 15.85% on yoy basis.
Net Profit for Dec-21 quarter was down -16.7% yoy at Rs.1,430 crore. In a way, the operating problems were transmitted to the bottom line. Secondly, in the Sep-21 quarter Bajaj Auto had also showed Rs.501 crore exceptional gains owing to of fair value adjustment of global subsidiary investments. This also made profits look lower. Bajaj Auto has surplus cash of Rs.17,883 crore in its books, which is the good news.